LONDON – The top ten OEMs, led by Hewlett Packard, were responsible for $104.3 billion of semiconductor chip purchases in 2010, or 34.7 percent of the market, according to market research company Gartner Inc.
The total semiconductor market in 2010 was $300.31 billion up 33.7 percent from 2009, Gartner said.
Eight of the top 10 companies in 2009 remained in the top 10 in 2010 and it includes three companies each from the Americas, Asia/Pacific and Japan and one company from EMEA.
The major growth drivers in 2010 were mobile PCs, smartphones and LCD TVs. PC vendors such as HP, Apple, Dell and Lenovo increased their design TAM greatly in 2010 (see Table 1) thanks to strong demand for mobile PCs. Samsung Electronics succeeded in riding the trend of the smartphone boom, while Nokia struggled. Samsung, Sony, Toshiba and Panasonic enjoyed market growth from flat-panel TVs, which saw them accelerate their design TAM.
As a new-style vertically integrated company, Apple provides hardware, software and services for PCs, smartphones, portable media players and media tablets, while the production is outsourced to electronics manufacturing service (EMS) providers. While its TV business is currently small, it is continuing to invest in the TV market by shipping new Internet Protocol (IP) set-top boxes for future growth. Google also intends to expand its platform business to the TV market, and Gartner believes that the TV service platform market is a key growth segment in the coming years.
"Judging from purchasing TAM, Asia/Pacific, and especially China, offers the greatest opportunities in most of the device and application market segments," said Masatsune Yamaji, senior research analyst at Gartner. "It will be difficult for most of the semiconductor device vendors, especially replaceable general-purpose device vendors, to achieve the full design-win benefit without establishing a strong distribution network in Asia/Pacific."
Table 1: Top 10 Semiconductor Design TAM by Company, Worldwide (Millions of Dollars)