New Delhi: The top 10 global original equipment manufacturers (OEMs) have lowered their chip spending by 7.6 percent and accounted for 37.2 percent of the total market in 2022, a new report said on Monday. According to Gartner, most of the top 10 semiconductor customers are major PC and smartphone OEMs.
“As a result, a sharp drop in consumer demand for PCs and smartphones prevented the top OEMs from increasing unit production and shipments,” Masatsune Yamaji, Senior Director Analyst at Gartner, said. (Also Read: Google Layoffs 2023: Employee Gets Fired at 2 AM, Was Feeding New Born Baby)
“The zero-Covid policy in China also caused serious material shortages and short-term disruptions to the electronics supply chain. A lingering semiconductor shortage in the automotive, networking, and industrial electronics markets, raised chip average selling prices (ASPs) and accelerated semiconductor revenue increases in these markets,” he added. (Also Read: Goa Using AI-Powered Robots to Save Lives on Beaches)
Moreover, the report said that all the top ten companies in 2021 remained in 2022, with Apple and Samsung Electronics retaining the top two spots. Only Samsung Electronics and Sony increased their chip spending in 2022.
Apple remained at the top of the semiconductor spending customer ranking for the fourth year in a row. Due to the ongoing shift to in-house-designed application processors, the company reduced spending on computing microprocessor units (MPUs) by 11.7 percent.
However, Apple increased spending on non-memory chips by 2.8 percent. Further, the report mentioned that Samsung Electronics increased chip spending by 2.2 percent and retained the second spot.
With approximately 25 percent of semiconductor sales in 2022 coming from memory, the device category had the worst performance, with a 10 percent decrease in revenue due to lower prices in the second half of the year, said the report.
“The top 10 OEMs accounted for 49.2 percent of memory spending and consequently saw a significant decline in memory spending,” said Yamaji.