New Delhi: The top 10 global original equipment manufacturers (OEMs) have slashed their chip spending by 7.6 percent and will account 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, the sharp decline in consumer demand for PCs and smartphones restrained top OEMs from increasing unit production and shipments,” said Masatsune Yamaji, senior director analyst at Gartner. ,ALSO READ: Google layoffs 2023: Employee fired at 2 am, feeding newborn baby,
“The zero-COVID policy in China also led to severe material shortages and short-term disruption in the electronics supply chain. A sluggish semiconductor shortage in the automotive, networking and industrial electronics markets, chip average selling prices (ASPs) and accelerated semiconductors in these markets increases revenue,” he said. ,ALSO READ: Goa is using AI-powered robots to save lives on beaches,
Furthermore, the report states that all the top ten companies in 2021 will remain in 2022, with Apple and Samsung Electronics retaining the top two spots. Only Samsung Electronics and Sony increased their chip spending in 2022.
Apple topped the semiconductor spending customer rankings 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. In addition, the report noted that Samsung Electronics increased chip spending by 2.2 percent and retained the second position.
With nearly 25 percent of semiconductor sales coming from memory in 2022, the device category was the worst performer, with revenue down 10 percent in the second half of the year due to lower prices, the report said.
“The top 10 OEMs accounted for 49.2 percent of memory spending and as a result saw a significant decline in memory spending,” Yamaji said.