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Report: Top OEMs gobbled 76% of chips shipped

Posted: 10 Jul 2008 ?? ?Print Version ?Bookmark and Share

Keywords:OEM? chipsets? cellphone? automotive?

The top 100 branded electronics firms consumed semiconductors worth $209 billion in 2007, or 76 percent of all chips sold last year, according to market research group Gartner Inc.

The top application areas remain data processing (37 percent) and communications electronics (28 percent), 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 percent of all semiconductor sales, followed by industrial (9 percent) and automotive (8 percent).

The Hewlett-Packard Co. led the pack with $16.5 billion in semiconductor demand, followed by Nokia, Dell and Samsung, with more than $11 billion each.

Gartner pointed out these firms have strong computer and/or mobile phone businesses. In 2007, PC shipments grew 11 percent, while cellphone shipments grew at double-digit rates.

The researchers said HP and Nokia grew significantly in these markets, adding that they were able to capitalize on the lower-priced semiconductors. Because of these, their semiconductor consumption did not grow as fast as their revenues.

Gartner also stressed that the semiconductor industry faces an ongoing issue on significant erosion of semiconductor content and average selling prices, especially in core markets. Computer and cellphone semiconductor content pricing is said to have decreased almost 9 percent in 2007, compared with 2006.

The researchers also warned chipmakers would 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 Co. Ltd. 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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