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Gartner: Top 100 OEMs consume 76% of chips

Posted: 10 Jul 2008     Print Version  Bookmark and Share

Keywords:electronics firms  semiconductors  chips  OEM 

According to market research group Gartner Inc., the top 100 branded electronics firms consumed semiconductors worth Rs.836,440.36 crore ($209 billion) in 2007, or 76 per cent of all chips sold last year.

The top application areas remain data processing (37 per cent) and communications electronics (28 per cent), which between them represented almost three-quarters of the semiconductors consumed by the top 100 OEM firms.

The consumer electronics sector came in third, representing 18 per cent of all semiconductor sales, followed by industrial (9 per cent) and automotive (8 per cent).

HP led the pack with Rs.66,034.77 crore ($16.5 billion) in semiconductor demand, followed by Nokia, Dell and Samsung, with more than Rs.44,023.18 crore ($11 billion) each.

Gartner points out these firms have strong computer and/or mobile phone businesses. In 2007, PC shipments grew 11 per cent while cell phone shipments grew at double-digit rates.

HP and Nokia grew significantly in these markets, the researchers note, and add they were able to capitalise on the lower-priced semiconductors; therefore, their semiconductor consumption did not grow as fast as their revenues.

Gartner also stresses that the semiconductor industry faces an ongoing issue on significant erosion of semiconductor content and average selling prices (ASPs), especially in core markets. Computer and cell phone semiconductor content pricing is said to have decreased almost 9 per cent in 2007 compared with 2006.

The researchers also warn chip makers will need to monitor closely and address this pricing weakness.

"We see some signs that new and innovative uses of semiconductors, such as sensors, are being implemented in products by firms such as Nintendo. During the next few months, we will see a series of interesting new touchscreen-based products, particularly in computers and phones," said Gartner in its market share report of chip demand by major OEMs.

- John Walko
EE Times Europe

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