Huawei’s semiconductor spending witnessed a staggering 45% growth in 2018

by Jeet 0

According to the new report from Gartner, Samsung Electronics and Apple managed to retain the top positions in terms of semiconductor chip buyers in 2018, representing 17.9 percent of the total worldwide market.

However, this indicates a 1.6 percent decrease compared with the previous year. On the other hand, the top 10 OEMs increased their share of chip spending to 40.2 percent in 2018, which is up from 39.4 percent in 2017.

Semiconductor Spending
Source: Gartner

Huawei saw around 45.2 percent growth in terms of chip spending and thus managed to jump ahead of Dell and Lenovo to grab the third spot. Dell and Lenovo trails behind Huawei with 29.6 and 16.4 percent growth.

The report also reveals that eight of the top 10 companies in 2017 remained in the top 10 in 2018, with Kingston Technology and Xiaomi replacing LG Electronics and Sony. Xiaomi rose eight places to the 10th position, increasing its semiconductor spending by $2.7 billion in 2018, a 63 percent growth year-over-year.

The Gartner report says that the continued market consolidation in the PC and smartphone markets had a significant impact on the semiconductor buyers’ ranking. The big Chinese smartphone OEMs, in particular, have increased their market domination by taking out or purchasing competitors.

Thus, as a result, semiconductor spending by the top 10 OEMs increased significantly, and their share reached 40.2 percent of the total semiconductor market in 2018, up from 39.4 percent in 2017. The report adds that the trend is expected to continue, which will make it harder for semiconductor vendors to maintain high margins.

 

Read More: Indian smartphone market grew 10 percent amid global slowdown last year, reports Canalys

 

 

Gartner also predicts that the share of total memory chip revenue in the total semiconductor market will be 33 percent in 2019 and 34 percent in 2020, higher than its 31 percent share in 2017.