Industry News
Top 10 OEMs consume one third
of semiconductors
THE top 10 original equipment shipments; this highlights the market’s
manufacturer (OEM) firms accounted for changing product mix and the decline
Top 5 OEMs
$91.6 billion of the semiconductor in semiconductor ASPs. As the top PC
market in 2008, representing one-third maker, HP was the leading consumer of 1: HP
of all semiconductor consumption, microprocessors and memory 2: Nokia
according to preliminary results from semiconductors. 3: Dell
Gartner, Inc. This was a 3.8 percent “HP and Nokia showed that 4: Samsung Electronics
decline from 2007. The leading manufacturers benefited from a 5: Sony
applications remain PCs and mobile significant decline in average selling
phones. “For the electronics and prices,” Mr. Velosa said. “In addition, Table 1. The top 5 companies
Issue I 2009
semiconductor industries, 2008 started Nokia continued to shift its
square4
on a positive note but ended with a semiconductor-sourcing strategy away Velosa said. “It jumped up to the No. 6
.com
whimper as the global recession limited from designing application-specific position, with $7 billion in
demand,” said Alfonso Velosa, research integrated circuits (ASICs) for its semiconductor consumption for its
director at Gartner. “Despite this, given handsets to using off the shelf branded products, driven by the
the overall unit shipment growth of application-specific standard products. strength of Apple’s fast selling mobile
most of the leading OEMs in 2008, the Since Nokia is the world’s largest phones, computers and portable media
semiconductor consumption threshold vendor of mobile phones, this shift will players (PMPs).
to be in the top 10 was raised to $6.0 continue to have a major impact on the Its integration of sensors and focus
oasiasemiconductor
billion, $0.1 billion more than in 2007.” semiconductor market.” “Apple again on industrial design and the ‘user
.eur
HP remained the leading OEM for demonstrated how innovative use of experience’ set an example that few
www
semiconductor consumption. technology and a keen understanding OEMs have been able to emulate.”
It accounted for $16.5 billion in of consumer requirements can lead to Data processing and memory
9
2008, a flat result compared with 2007. strong growth in revenue and thus in devices dominate the semiconductor
Despite a significant increase in unit semiconductor consumption,” Mr. demands of the top10.
China expected to slide in 2009
CHINA’S semiconductor industry is plunged by 28.6 percent, China’s
expected to contract in 2009, the first industry managed to surge by 24.4
time a significant decline has occurred percent. With global revenue expected
since iSuppli Corp. began gathering to decline by 9.4 percent in 2009, and
statistics on the market—and perhaps with consumer confidence at risk of
for the first time in the history of the falling further, China’s semiconductor
nation’s chip business. China’s market is outlook could dim even more than
expected to decline by 5.8 percent to iSuppli presently forecasts.” small firms saw their business decline by
$72 billion in 2009, down from $76.5 Despite this, iSuppli predicts more than 40 percent, especially at low
billion in 2008, according to iSuppli’s growth will return in 2010, with a smart tech, labor intensive and export
China Application Market Forecast Tool revenue rebound of 9 percent, followed oriented companies.”
(AMFT). The only previous decline by an 11 percent increase in 2011. To stimulate the economy, the
iSuppli recorded was in 2008, when “China’s economy has been Chinese government has cut interest
revenue decreased by 0.1 percent, increasingly affected by the financial rates four times within a two month
essentially a flat year for the market. crisis in developed countries since the period starting in October 2008.
“Such a downturn is remarkable for third quarter of 2008,” Wang said. Moreover, a stimulus package estimated
an region long regarded as a vigorous “Many small consumer electronics at around $570 billion will be
and reliable growth driver for global factories in Guangdong province closed implemented during the next two years.
semiconductor market,” Kevin Wang, because of lower sales orders and cash The government’s Home Appliances for
senior manager of China research at flow problems. The current market Rural Areas project is an example of just
iSuppli. “Even during the disastrous conditions became even more negative one measure intended to stimulate
year of 2001, when global revenue in the fourth quarter of 2008. Most domestic demand.
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