Samsung and Apple top semiconductor buyers charts 2017

A report from Gartner has revealed that Apple and Samsung continue to rule the semiconductors buyers list with the two accounting for a 19.5 per cent of the total worldwide market.

According to the market research firm Samsung and Apple together consumed semiconductors worth $81.8 billion in 2017, showing an increase of more than $20 billion from 2016. Samsung semiconductor spending grew by a whopping 37.2 per cent over last year while Apple’s semiconductor spending increased by 27.5 per cent.

In addition to the continuous growth of Samsung and Apple, the preliminary rankings revealed by Gartner highlights eight of top 10 semiconductor buyers in 2016 remained in the top 10 list in 2017, with the top five chip buyers remaining in the same position. LG Electronics made a comeback to the top 10 list and was joined by Western Digital, which grew its semiconductor spending by $1.7 billion. Also, China’s BBK Electronics, the parent company of OnePlus, Oppo, and Vivo, rose one place to the sixth position with increasing its semiconductor spending by $5.7 billion.

Gartner points out a significant price increase of DRAM and NAND flash memory had majorly influenced the total semiconductor buyers’ ranking in 2017. Similarly, supply shortages, mainly for memory IC, microcontrollers, and passive components, benefited the suppliers but troubled the OEMs, the firm said. The increase in OEMs’ captive chip spending that is aimed to add distinctions in their models reportedly brought a great risk for commercial chip vendors. Companies, including Huawei and Samsung, brought their own silicon solutions that reduced the demand for chips developed by Qualcomm and MediaTek.The share of semiconductor spending by the top 10 OEMs reached 40 percent of the total semiconductor market in 2017, up from 31 percent 10 years ago. Gartner predicts that this trend will continue and by 2021, the top 10 OEMs will account for more than 45 percent of global semiconductor spending.

Earlier this month, Gartner reported that Samsung had replaced Intel and became the top player in the global semiconductor market in 2017 with a share of 14.6 percent. The prime reason for the growth of the South Korean company in the market for semiconductors was found to be the increased prices of NAND flash and DRAM chips.

“NAND flash prices increased year over year for the first time ever, up 17 percent, while DRAM prices rose 44 percent,” the Gartner report had said.