18 March 2010

OEM, EMS semi spend to rise significantly in 2010

  • semiconductor spending

OEM and EMS companies are set to increase their semiconductor purchases significantly in 2010, according to a report from iSuppli. OEM spending is predicted to rise by 13% to $177.9billion, while EMS providers will buy $37.7bn worth of devices; 15.1% more than in 2009.

Hewlett-Packard is projected to be the top OEM semiconductor spender in 2010, with an estimated budget of $12.6bn. Samsung, predicted to spend $12.5bn, is likely to take over the leading spender position in 2011, with a range of new products drive increased semiconductor spend.
Among EMS providers, Foxconn will buy $22.6bn worth of semiconductors, boosted by products such as the Wii, the PlayStation 3 and a range of Apple products, including the forthcoming iPad, pictured.
"The increase in OEM semiconductor spending in 2010 represents a turnaround for the market," said Min-Sun Moon, iSuppli's senior analyst for semiconductor spend and design. "Although still cautious, electronic OEMs this year are gearing up to gain more share in their respective markets – a strategy that will translate into greater semiconductor spending."

Author
Graham Pitcher

Supporting Information

Websites
http://www.isuppli.com

Companies
iSuppli

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