Top 10 OEMs accounted for $104bn of semiconductor market in 2010

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Leading brand companies remained at the centre of the semiconductor industry in 2010 according to market research firm Gartner. The top 10 original equipment manufacturers accounted for $104.3billion of the market, more than a third of semiconductor vendors' worldwide chip revenue. This was a year on year increase of approximately $26.3bn, up 33.7% from 2009.

Eight of the top 10 companies in 2009 remained in the top 10 in 2010, with three companies each from the Americas, Asia/Pacific and Japan, and one company from EMEA. According to Gartner, the major growth drivers were mobile pcs, smartphones and lcd tvs. Apple is said to be leading the new competitive landscape of the IT and electronics industry and plans to invest in the tv market by shipping new Internet Protocol (IP) set top boxes for future growth. Google also intends to expand its platform business to the tv market and Gartner believes that the tv service platform market will be a key growth segment in the coming years. Masatsune Yamaji, senior research analyst at Gartner, warned that semiconductor device vendors should continue to closely monitor the changing competition structure of the target market. He also suggested that Asia/Pacific, and especially China, will offer the greatest opportunities in most of the device and application market segments in the coming years. "It will be difficult for most of the semiconductor device vendors, especially replaceable general purpose device vendors, to achieve the full design win benefit without establishing a strong distribution network in Asia/Pacific," he said.