Computer companies still buy the most semiconductors
By Staff -- Purchasing, 3/23/2000
Communication companies increased their purchases of semiconductors in 1999, but computer OEMs continue to be the largest consumer of chips, according to market researcher Dataquest.The top four original equipment manufacturers purchasing semiconductors in 1999 were computer companies. Compaq was the number-one OEM. It purchased $8.5 billion worth of semiconductors. IBM was the number-two OEM, with semiconductor purchases of more than $5.9 billion. Driven by its strong growth in the PC market, Dell was third with nearly $5.9 billion in semiconductor spending in 1999. Hewlett-Packard was the number-four OEM with $5.5 billion.
"The worldwide personal computer industry continues to post double-digit growth, and the semiconductor companies are reaping the benefits, as the top four purchasers of semiconductors spent more than $25.8 billion in 1999," says Benjamin Thompson, industry analyst for Dataquest's Semiconductor Application Markets Worldwide Program.
Positions five through nine of the top semiconductor purchasers were communication companies. Siemens was number-five with semiconductor purchases of $4.9 billion, followed by Motorola with spending surpassing $3.2 billion. Ericsson was the number-seven vendor with $2.4 billion; Nokia was number eight with $2.3 billion. Lucent was the number-nine manufacturer at $2.2 billion. "Wireless technology is driving strong semiconductor sales in the communication market," says Thompson.
Intel, the biggest semiconductor company in the world, was the No. 10 consumer of chips with nearly $2.2 billion in semiconductor purchases last year.
The leading applications for worldwide semiconductor consumption in 1999 were for data processing, followed by communication, automotive, industrial, consumer and military/aerospace.
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