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OEM Semiconductor Spending for Wireless Use Up 13.5% in 2013
Wednesday, February 13, 2013 | IHS

Wireless is set to be the leading growth segment for semiconductor spending among original equipment manufacturers (OEMs) in 2013, with expenditures rising by a double-digit margin to support the burgeoning markets for smartphones, media tablets and mobile infrastructure gear.

OEM spending on semiconductors for wireless applications is set to rise by 13.5 percent this year to reach a value of $69.6 billion, up from $62.3 billion in 2012, according to the IHS iSuppli Semiconductor Design & Spend Analysis Service from information and analytics provider IHS. This represents the highest rate of growth of the seven major application markets, with the others set to undergo annual changes ranging from a 6.5 percent expansion to a 1.7 percent decline.

through an electronic manufacturing service (EMS) or original design manufacturer (ODM). Also for those companies that operate as both OEM and semiconductor supplier, every effort has been made to calculate net spending only for those devices originating from the external merchant market. Therefore, net spend does not include internally sourced products.

“The growth in wireless semiconductor spending this year reflects the strong and sustained consumer appeal of smartphones and media tablets—as well as the robust corporate infrastructure expenditures required to support this trend,” said Myson Robles-Bruce, senior analyst for semiconductor design and spend at IHS. “Mobile handsets continued to be the leading category for wireless semiconductor spending, but tablets are on the rise, with the new slate computers surpassing wireless infrastructure in 2012 for the first time ever.”

Tablet Chip Spending Gets Fatter

Spending for media tablets alone reached $10.5 billion in 2012, compared to $8.7 billion for wireless infrastructure.

Still, the largest submarket by dollar value will continue to be handsets, at $46.7 billion.


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