Top 10 OEMs Accounted For 42 Percent Of Chip Spending In 2021: Report


Apple remained at the top of the semiconductor spending customer ranking in 2021

Top 10 original equipment manufacturers (OEMs), including Apple and Samsung Electronics, increased their chip spending by 25.2 percent and accounted for 42.1 percent of the total market in 2021, according to a report by Gartner.

The chip shortage significantly increased selling prices, which meant OEMs spent much more on semiconductor procurement in 2021 than in prior years.

The average selling prices (ASPs) of semiconductor chips, such as microcontroller units, general-purpose logic integrated circuits (ICs), and a wide variety of application-specific semiconductors, increased by 15 percent or more in 2021.

Apple and Samsung Electronics have retained the top two spots since 2011 while swapping ranks through the years.

Huawei struggled to buy chips and dropped down from the No.3 spot to the No. 7 position in 2021.

Other Chinese smartphone OEMs, such as BBK Electronics and Xiaomi, significantly increased their semiconductor spending as they successfully compensated for the loss of market share by Huawei in the smartphone market in 2021.

Apple remained at the top of the semiconductor spending customer ranking in 2021.

Apple increased its spending on memory by 36.8 percent and on nonmemory chips by 20.2 percent in 2021. However, it decreased its demand for computing microprocessing units (MPUs) due to the shift to its own in-house-designed application processors.

Samsung Electronics increased its memory spending by 34.1 percent and nonmemory chip spending by 23.9 percent in 2021.

The increase of memory spending was the result of not just a rise of memory price, but also Samsung’s growth in its target electronic equipment markets, especially the smartphone and solid-state drive (SSD) markets.

“Semiconductor vendors shipped more chips in 2021, but the OEMs’ demand was far stronger than the vendors’ production capacity,” said Masatsune Yamaji, research director at Gartner.

“The semiconductor shortage also accelerated OEMs’ double booking and panic buying, causing a huge spike in their semiconductor spending,” said Yamaji.


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