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Wireless IC spend to boom in 2011 as pc market dwindles

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Wireless devices are set this year to overtake computers as the leading segment for semiconductor purchasing among original equipment manufacturers, according IHS iSuppli.

Driven by booming sales of smartphones and tablets, oems in 2011 will buy $55.4billion worth of semiconductors for use in wireless devices, up 10.7% from $50.1bn in 2010, said the market research firm. In contrast, oems are predicted to spend $53.1bn on semiconductors used to make computers, up just 1.2% from $52.5bn in 2010. "Led by Apple's iPhone and iPad, demand is booming for smartphones and tablet devices," said Wenlie Ye, analyst for semiconductor design and spending at IHS. "This is spurring a surge in sales of semiconductors used in wireless devices, including baseband chips, applications processors and mobile memory. With overall sales growth for pcs slowing, the balance of power in the semiconductor industry is shifting toward the wireless segment." Ye maintained that not only will wireless be the leading category for semiconductor spending in 2011, wireless will also expand its lead in 2012 as the high technology market increases its focus on mobile, internet connected devices.