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OEM IC spending to hit six-year high in 2013

Posted: 24 Jul 2013 ?? ?Print Version ?Bookmark and Share

Keywords:OEM? wireless? manufacturing?

According to the latest report from IHS, the global purchasing of semiconductors by the world's leading electronic brands is set to return to growth this year, as Apple Inc. and Samsung Electronics pull out all the stops to claim the title of biggest spender. The total available market (TAM) for semiconductor spending by major original equipment manufacturers (OEMs) in 2013 will rise to $265.2 billion this year, up 4.2 per cent from $254.4 billion in 2012. Spending by year-end will be at its highest level in six years, with expenditures in 2014 forecast to make another modest jump to $279.4 billion, indicated the market analytics firm.

The top OEM semiconductor spending TAM represents about 83 per cent of the total semiconductor market of $318.8 billion, as valued by the IHS Application Market Forecast Tool (AMFT). If internal chip consumption within companies is excluded, the served available market for semiconductor spending (SAM) will equate to an amount slightly lower than the TAM, at $241.3 billion in 2013.

As IHS announced in 2012, Apple is set to maintain leadership in the OEM semiconductor spending SAM in 2013. However, when also accounting for consumption of internally produced chips, Samsung will take the lead in terms of TAM this year.

"Depending on the metric used, either Samsung or Apple will be the top chip spender for 2013," said Myson Robles-Bruce, senior analyst for semiconductor spend & design activity at IHS. "Either way, the honour does not merely signify bragging rights but also carries attendant overtones of prestige and influence, with the incumbent leader often tacitly acknowledged by all others as the industry's top semiconductor spender."

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