Top ten chip buyers spending dropped by 7.6% in 2022
In a global chip market that grew 1.1 percent the top ten buyers saw their market share decline, according to market research firm Gartner.
A 7.6 percent drop in chip spending by the top ten reflects their exposure to the smartphone and personal computing, markets where unit shipments and average selling prices (ASPs) plunged in 2022. Outside the top ten, with a greater proportion of buyers focused on automotive and industrial applications, chip prices held up and markets were still able to grow. The memory price decline specifically impacted chip spending.
The top ten global OEMs accounted for 37.2 percent of the total market in 2022, compared with 40.7 percent a year before, according to preliminary results from Gartner.
The zero-covid policy in China caused material shortages and short-term disruptions to the electronics supply chain, said Masatsune, Yamaji, a senior analyst at Gartner. “A lingering semiconductor shortage in the automotive, networking and industrial electronics markets, raised chip average selling prices (ASPs) and accelerated semiconductor revenue increases in these markets,” he said.
Apple and Samsung retained the top two spots in the 2022 ranking while only Samsung and Sony increased their chip purchasing.
Apple decreased spending on processor chips by 11.7 percent due to the continuing migration to using in-house-designed application processors. However, Apple increased spending on non-memory chips by 2.8 percent.
Samsung gained market share in the lacklustre smartphone market due to its pioneering deployment of foldable phones as well as benefitting from how zero-covid policy hurt rival Chinese smartphone brands.
Sony enjoyed interest in the PlayStation 4 video game console although it could not fully benefit because of chip shortages and disruption of logistic networks throughout the year Gartner said.
Memory accounted for approximately 25 percent of chip sales in 2022. It was the worst-performing component category with a 10 percent decrease due to falling prices in the 2H22 amid weak demand. “The top ten OEMs accounted for 49.2 percent of memory spend and consequently saw a significant decline in memory spending,” said Yamaji.
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