New Report: PCs Continue To Have Edge Over Mobile Phone For Semiconductor Consumption The top consumers of semiconductors are computer manufacturers, but communication companies increased their purchases of semiconductor products in 1999. The top four original equipment manufacturers (OEMs) purchasing semiconductors in 1999 were computer companies. Positions five through nine of the top semiconductor purchasers were communication companies.
Dataquest researched 45 Americas-based OEMs, 22 European-based OEMs, as well as nine contract manufacturers. The spending patterns for application segment, semiconductor device types and geographic region broke out these manufacturers. "The world-wide personal computer industry continues to post double-digit growth, and the semiconductor companies are reaping the benefits, as the top four purchasers of semiconductors spent more than $25.8 billion in 1999," said Benjamin Thompson, industry analyst for Dataquest, "Wireless technology is driving strong semiconductor sales in the communications market."
Compaq was the No. 1 OEM as it spent $8.5 billion on semiconductors in 1999. IBM was the No. 2 OEM with semiconductor purchases of more than $5.9 billion. Driven by its strong growth in the PC market, Dell's semiconductor spending increased to nearly $5.9 billion in 1999. In 1998, Dell spent slightly more than $4 billion. Hewlett-Packard was the No. 4 OEM with $5.5 billion.
Communications manufacturer, Siemens was the No. 5 vendor with semiconductor purchases of $4.9 billion, followed by Motorola with spending surpassing $3.2 billion. Ericsson was the No. 7 vendor with semiconductor purchases reaching $2.4 billion, and Nokia was No. 8 with consumption of nearly $2.3 billion. Lucent was the No. 9 manufacturer at $2.2 billion, and Intel was the No. 10 OEM with semiconductor consumption of nearly $2.2 billion.
The leading applications for worldwide semiconductor consumption in 1999 were for data processing, followed by communications, automotive, industrial, consumer, and military/aerospace.
"Though smaller than the computer or communications industries, tremendous growth opportunities abound in both digital consumer and automotive electronics," said Mr. Thompson. "For example, we predict the semiconductor value in DVD players to grow at a compound annual growth rate (CAGR) of 45 percent through 2003. Likewise, semiconductor consumption in automotive navigation systems is expected to grow at 39 percent through the same period."
Edited by Mark Osborne
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