Date: 16/08/2011

Wireless applications to consume more semiconductor devices than the computers

IHS iSuppli has reported the wireless segment is expected to overtake computers to become the world's leading application market for semiconductor purchasing by original equipment manufacturers (OEMs) starting in 2011. IHS iSuppli says wireless market is driven by booming sales of smartphones and tablets, OEMs in 2011 will buy $55.4 billion worth of semiconductors for use in wireless devices, up 10.7 percent from $50.1 billion in 2010. In contrast, OEMs will spend $53.1 billion on semiconductors used to make computers, up a scant 1.2 percent from $52.5 billion in 2010, as presented in the figure below, as per IHS iSuppli.

Electronics Engineering Herald
The wireless semiconductor spending segment consists of all OEM chip purchases for mobile devices such as mobile handsets, smartphones and media tablets. The category also includes wireless infrastructure gear like routers and base stations.

The computer segment comprises spending on chips used in computers, including notebook PCs, desktop PCs and servers. The category excludes chip spending for computer peripherals such as hard disk drives and printers.

IHS iSuppli finds Apple is spending approximately 61 percent of its chip budget in 2010 on wireless products such as the iPhone and iPad. In contrast, HP in 2010 devoted 82 percent of its chip spending to computer products like desktops, notebooks and servers.

Thus, the supremacy of wireless as an OEM semiconductor spending category also is partly a consequence of Apple's domination of hot mobile markets-and its primacy in the electronics supply chain, notes IHS iSuppli.