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Lenovo to enter top-10 2005 chip buyer ranks

Posted: 07 Jul 2005 ?? ?Print Version ?Bookmark and Share

Keywords:pc? ibm?

A Chinese company, Lenovo Group, is set to enter the ranks of the world's top OEM buyers of semiconductors for the first time in 2005, according to iSuppli Corp., a market research company.

Lenovo Group, which acquired the PC operations of IBM, is predicted to become the world's ninth-largest OEM semiconductor buyer in 2005, with chip purchases amounting to $4.3 billion for the year.

Due to the addition of IBM's PC business Lenovo's semiconductor purchases are expected to increase by more than a factor of four from about $1 billion in 2004. Lenovo is set to rise from 36th position to 9th position, iSuppli said. IBM is expected to fall to 16th place in 2005, down from ninth place in 2004.

Hewlett-Packard Company is expected to be world's biggest purchaser of chips with Dell Inc. second and Nokia in third place. Hewlett-Packard's semiconductor spending is predicted to rise to $13.7 billion in 2005, up 9.7 percent from $12.5 billion in 2004the second-largest increase among the top-10 OEM chip buyers. Dell's spending will rise to $12.5 billion, up 15.9 percent from $10.7 billion in 2004; the largest increase among the top 10, iSuppli said.

Dell and Hewlett-Packard are expected to exceed the industry average of a 6.8 percent increase in OEM chip purchasing in 2005. Besides Lenovo, other top-10 OEMs expected to grow their chip purchasing in 2005 by a faster-than-average rate include Motorola Inc. and Samsung Electronics Co. Ltd.

- Peter Clarke
EE Times

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