comment on this article

Eating the crumbs left on the top table?

Just as the top 10 semiconductor companies account for 41.6% of global revenues, so the top 10 OEMs purchase 40.1% of the devices produced, according to market watcher Gartner. It’s a tidy balance, by the look of things.

And, in an even nicer piece of symmetry, Samsung not only generates the most revenue as a semiconductor vendor – $61.2billion and a 14.6% market share, in case you’re interested – it’s also the largest purchaser of semiconductors. Last year, it bought devices worth $43.1bn, or 10.3% of global spend.

Apple holds the number two slot, with a spend of $38.8bn, but is comfortably ahead of third ranked Dell, which ‘only’ purchased $15.7bn worth of parts. Samsung increased its spend by 37.2% from 2016, while Apple grew its spend by 27.5%.

Interestingly, a decade ago, the top 10 OEMs accounted for 31% of semiconductor consumption. That’s now 41.6% and Gartner expects this to exceed 45% in 2021.

What implications are there for other companies? It’s something which Gartner has considered. Principal research analyst Masatsune Yamaji said Samsung and Apple – which have held the top two positions since 2011 – continue to exert significant influence on technology and price trends for the whole semiconductor industry.

But that’s not all. “With the top 10 semiconductor chip buyers commanding an increasing share of the market, technology product marketing leaders at chip vendors … will need to prioritise direct sales and technical support resources to these top customers.”

And, as more resources are focused on a smaller number of companies, the distribution sector will need to broaden its support operations.

But Gartner raises another interesting point – with the large OEMs now developing their own silicon solutions, the increase in captive chip spending is a ‘great risk’ for the future growth of commercial chip vendors.

While it appears Samsung can have its cake and eat it, there may only be crumbs in the future for a wide range of chip developers.

Graham Pitcher

Comment on this article

This material is protected by MA Business copyright See Terms and Conditions. One-off usage is permitted but bulk copying is not. For multiple copies contact the sales team.

What you think about this article:

Add your comments


Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

Intelligent Audio

As more and more consumers look to film their experiences and share short-form ...

Innovation unbound

Earlier this month the Consumer Electronics Show (CES) took place in Las Vegas, ...

Definition in demand

Consumer interest in 4K continues to increase and by the end of 2018 4K TV ...

Ethernet bridge IC

Toshiba Electronics Europe has unveiled the TC9562 series, the latest member in ...

Gold-plated posts

Responding to a growing demand from high-end audio and precision ...

Smart Home Expo

The Smart Home Expo, which focuses on the future of smart technologies, ...

Get to market faster

A quick look at using Vicor's PFM and AIM in VIA packaging for your AC to Point ...

Semiconductor boom

Compared to an ailing steel industry, just a few years ago, the semiconductor ...

A racing certainty

AI has shaken the automotive industry to its core, inspiring a revolution. ...

Planning pays off

Described as a one-stop shop Plexus provides companies with engineering, ...

Piezoelectric haptics

Boréas Technologies’ CEO, Simon Chaput, talks to Neil Tyler about the company’s ...