The Chips Are Up

April 10, 2007

The top 10 high-tech manufacturers spent $85 billion on semiconductor chips in 2006.

The Top 10 high-tech manufacturers consumed roughly one-third of all semiconductor chips in 2006, accounting for $84 billion of the semiconductor market, according to analyst firm Gartner Inc. This represents a 9% increase from 2005 when the top 10 original equipment manufacturers (OEMs) accounted for $77 billion of semiconductor sales.

"The top 10 OEMs in 2006 were multinational firms that have been implementing supply chain best practices over many years," notes Alfonso Velosa, research director at Gartner. "They have experience in managing a large number of global supply chain partners. This experience is enabling these OEMs to better compete in commoditized markets by increasing the volume of products developed where product design and manufacturing may be controlled in different geographic regions by the OEM or its partners."

Top 10 Consumers Of Semiconductors

1. Hewlett-Packard
2. Nokia
3. Dell
4. Samsung
5. Sony
6. Motorola
7. Siemens
8. Toshiba
9. LG
10.Apple
Source: Gartner Inc.

While semiconductor consumption will remain concentrated among the top OEMs, "the design-in, sales, order and fulfillment channels will continue to evolve," Velosa says.

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About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

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During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.