Samsung Electronics will remain the world's second-biggest chipmaker with 7.4 percent of the market, while Toshiba will rise to third place, pushing Texas Instruments to number No. 4, iSuppli said.
Total semiconductor revenue is expected to reach $271 billion, up 4.1 percent from 2006. In September, iSuppli had said it expected the market to grow by 3.5 percent.
"Amid slowing growth for semiconductor sales, companies that have superior execution or that have been better able to capitalize on industry trends or events outperformed the market," the research firm said in a statement late on Tuesday.
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Sony is seen leaping into eighth place from 14th in 2006 with a 57 percent increase in revenue, thanks to sales of chips for its PlayStation 3 game console. Toshiba's higher revenue is also seen partly due to PlayStation 3 chip sales.
Infineon was expected to benefit from a booming market in mobile phones to rise to 10th place from 15th, thanks to its own strengthening wireless business.
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