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Top 10 OEMs Decreased Chip Spending by 7.6% in 2022

The top 10 global OEMs have decreased their chip spending by 7.6 percent and accounted for 37.2 percent of the total market in 2022, according to a Gartner study. In 2022, worldwide inflation and recessionary forces significantly decreased demand for PCs and cellphones, affecting global OEM output.

 

The top ten semiconductor customers are mostly big PC and smartphone OEMs. “As a result, the top OEMs were unable to increase unit production and shipments due to a dramatic reduction in consumer demand for PCs and smartphones,” stated Masatsune Yamaji, Senior Director Analyst, Gartner.

 

“The zero-COVID policy in China also generated major material shortages and short-term disruptions to the electronics supply chain. A persistent semiconductor shortage in the automotive, networking, and industrial electronics businesses raised chip average selling prices (ASPs) and hastened semiconductor revenue growth in these markets. As a result of these variables, the top OEMs’ proportion of overall semiconductor investment in 2022 decreased from 2021.”

 

The top 10 firms from 2021 stayed in 2022, with Apple and Samsung Electronics holding the top two positions. In 2022, only Samsung Electronics and Sony raised their chip spending.

 

Top 10 Companies by Semiconductor Design TAM, Worldwide, 2022 (Millions of $)

2022 Rank2021 RankCompany2022 Spending2022 Market Share ( percent)2021 Spending2021-2022 Growth ( percent)
11Apple67,05611.168,851-2.6
22Samsung Electronics46,0657.745,0912.2
33Lenovo21,0313.525,410-17.2
45Dell Technologies18,3043.020,977-12.7
54BBK Electronics18,0823.021,810-17.1
66Xiaomi14,6022.416,465-11.3
77Huawei12,0752.014,977-19.4
88HP Inc.11,2911.913,927-18.9
910Sony7,9751.36,84716.5
109Hon Hai Precision7,5311.38,028-6.2
  Others (outside top 10)377,68062.8352,5687.1
  Total Market601,694100.0594,9521.1

For the fourth year in a row, Apple remained at the top of the semiconductor spending customer rating. Due to the continuing shift to having its own in-house-designed application processors, the corporation reduced spending on computing microprocessor units (MPUs) by 11.7 percent. Apple, on the other hand, raised its spending on non-memory chips by 2.8 percent.

 

Samsung Electronics upped chip investment by 2.2 percent to maintain second place. The company increased its market share in the smartphone market because to its leadership in foldable phones, as well as profiting from China’s zero-COVID policy, which hurt its competitors, resulting in an increase in semiconductor spending in 2022.

 

Because of continued global customer interest in PlayStation 5 video game systems, Sony had the largest growth in chip spending in 2022. However, due to ongoing acute chip shortages and disruptions in logistic networks throughout the year, production output could not be increased to meet demand.

 

Memory, which accounted for nearly 25% of semiconductor sales in 2022, was the worst-performing device category, incurring a 10% revenue decrease due to falling prices in the second half of 2022 despite sluggish demand. “The top ten OEMs accounted for 49.2 percent of memory spend, resulting in a considerable reduction in memory spending,” Yamaji explained.

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