No letup in sight for semiconductor sales
Staff -- Purchasing, 11/18/2004 2:00:00 AM
Strong sales of personal computers and cell phones continue to drive semiconductor sales higher, with Hewlett-Packard, Dell Computer and Nokia accounting for nearly 24% of the estimated $167 billion expected to be spent on semiconductors in 2004.
But, as a group, electronics manufacturing services (EMS) providers and original design manufacturers (ODMs) account for the highest percentage of semiconductor purchasing. EMS providers and ODMs will be responsible for 40% of global chip consumption in 2004.
Overall semiconductor spending among the top 160 OEMs is expected to rise 24% in 2004 and 10% in 2005.
With an increase of 31.4% in its semiconductor spending to $14.5 billion in 2004, Hewlett-Packard is the world's largest semiconductor purchaser for the second year in a row and accounts for 8.7% of all semiconductor spending around the world, according to market intelligence provider iSuppli, whose Semiconductor Spending Analysis service surveyed 160 companies that purchase semiconductors.
And HP expects its level of semiconductor purchasing will rise another 11% in 2005 to $16 billion, which would make it the top chip buyer for the third year in a row. However, Dell, number two in semiconductor spending with 8% of all global chip sales, is closing that gap. The computer OEM will finish the year with estimated purchase of $13.4 billion of semiconductors, up 33.4% from $10.1 billion in 2003.
Cell phone maker Nokia is the third largest semiconductor buyer purchasing about $7 billion of chips.
The increasing amount on dollar spend on semiconductor chips is being driven by improving unit sales of PCs, the fastest-growing application for semiconductors in 2004.
Memory chips, including DRAM s and flash-memory devices, are expected to generate the largest percentage growth in sales of all types of semiconductors in 2004. In the flash-memory segment, sales of both NAND and NOR part types will grow strongly. NOR will be driven particularly by surging mobile-phone production.
With electronics equipment manufacturing continuing to shift to China and other countries in the region, Asia will account for 47% of chips consumed in 2004, up from 43% in 2003.
Top 10 OEM purchasers of semiconductors
($ millions, worldwide)
| Rank 2004 | Company | 2003 | 2004 | 2005 |
| SOURCE: ISUPPLI CORP., OCTOBER 2004 |
||||
| 1 | Hewlett-Packard | $11,025 | $14,482 | $16,070 |
| 2 | Dell | $10,079 | $13,442 | $15,606 |
| 3 | Nokia | $7,026 | $8,033 | $8,254 |
| 4 | Sony | $5,657 | $6,730 | $7,755 |
| 5 | Matsushita Electric (Including JVC) | $5,928 | $6,829 | $7,280 |
| 6 | Samsung Electronics | $4,320 | $5,880 | $6,816 |
| 7 | IBM | $4,613 | $5,776 | $6,370 |
| 8 | Motorola | $4,160 | $6,018 | $6,456 |
| 9 | Siemens | $4,679 | $5,180 | $5,672 |
| 10 | Hitachi | $3,382 | $3,935 | $4,207 |
| Total Top-10 Spending | $60,869 | $76,306 | $84,485 | |
| Total Top-160 Spending | $135,359 | $167,158 | $184,060 | |
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