Surge in memory prices impacts semiconductor purchasing priorities.
Top 10 OEMs Expected to Account for More Than 45% of Semiconductor Purchases by 2021

According to Gartner, Samsung Electronics and Apple ranked first and second, respectively, in terms of global semiconductor purchase share in 2017. The two companies' semiconductor purchases in 2017 reached $81.8 billion, a $20 billion increase from the previous year, accounting for 19.5% of the total.

Gartner Principal Analyst Masatsune Yamaji said, "Samsung Electronics and Apple have maintained the top two positions in semiconductor purchase indicators since 2011, and their share of semiconductor purchases also increased sharply in 2017. The two companies exert significant influence on technology and pricing trends across the semiconductor industry."

Eight of the top ten companies from 2016 retained their positions in 2017, with the top five remaining unchanged. LG Electronics returned to the top ten, taking ninth place, followed by Western Digital, which entered the top ten for the first time in 2017 after increasing its semiconductor purchases by $1.7 billion. BBK Electronics, which increased its semiconductor purchases by approximately $5.7 billion, ranked sixth.



The surge in DRAM and NAND flash memory prices significantly impacted the rankings of semiconductor buyers in 2017. The memory chip shortage and the risk of rising memory prices weighed on many original equipment manufacturers (OEMs), including large players. Supply shortages were experienced not only in the memory IC market but also in other semiconductor markets, such as microcontrollers and discrete components, as well as the passive component market. While this benefited suppliers, it created problems for OEMs. Conversely, some leading OEMs differentiated their products with captive silicon solutions. The growing consumption of captive chips poses a significant risk to the growth of commercial chip manufacturers.

Semiconductor purchases by the top 10 OEMs have seen significant growth, with their share of semiconductor purchases approaching 40% in 2017, up from 31% a decade ago. Gartner projects this trend will continue, with the top 10 OEMs accounting for over 45% of total semiconductor purchases by 2021.

“With the top 10 semiconductor buyers increasing their share of purchases, chipmakers’ technology product marketing leaders should adopt a strategy of focusing on top customers,” said Yamaji. “They should leverage online technical support capabilities to prioritize direct sales and technical support resources for top customers, while outsourcing other customer support.”