Apple Inc. is the biggest semiconductor buyer in the world, but in Asia-Pacific, local OEMs are outspending the multinationals in chip purchases, says market research firm IHS. This year, local OEMs in Asia-Pacific will drive a 6 percent growth rate in semiconductor spending in the region, compared with the rest of the world’s 2.5 percent growth.
Among the Top 10 OEMs headquartered in Asia-Pacific, Taiwan’s HTC Corp. will lead the chip-spending growth spree this year at 23 percent, according to a recent report. Of all OEMs buying in the region, local companies still top the list, with ZTE Corp. of China; HTC; and TCL Corp., respectively, setting the pace:
- “Local companies have led, are leading and will lead the Asia-Pacific region in semiconductor spending growth -- not the larger OEMs headquartered elsewhere, such as Apple, Hewlett-Packard Co. and Dell Inc.,” said Myson Robles-Bruce, senior analyst for semiconductor spending and design activity at IHS. “This is critical given the Asia-Pacific is the largest global region for chip purchasing -- and is set to outperform the rest of the world in coming years. Apple is leading the Top 10 in growth and size worldwide during 2012 and 2013, giving it enormous advantages in terms of component supply and pricing. However, the Asia-Pacific players are playing to their home-field advantage, wielding in Asia the same kind of influence that Apple now enjoys globally.”
Although smartphone vendors ZTE and HTC trail market leaders Samsung, Apple, and Nokia worldwide, they are effectively competing in their domestic market, reports IHS. In China, ZTE has been able to match Apple’s market share. HTC has been suffering globally but still plans to fuel local chip purchasing by releasing new smartphones. TCL recently reported that its handset sales for the Chinese domestic market were up by more than 200 percent year over year, according to IHS:
- Most of this new growth was driven by the release of five new smartphone models this year. Also for 2012, the company has brought to the China market a new 7-inch tablet called the T50. TCL has publicly stated its goal of raising revenue by 30 percent for this year, a feat which will be based in part upon greater spending on semiconductors.
Local companies have outpaced chip spending in Asia-Pacific for a number of years, according to the research firm. The forecast for 2013 shows that trend will continue.