Asian smartphone makers show strongest growth
In the Asia-Pacific region it is the local based manufacturers and not global OEMs such as Apple, that are leading the way in chip spending growth, according to a report by market analyst IHS.
Semiconductor spending in Asia-Pacific among original equipment manufacturers (OEMs) headquartered in the region is expected to rise by an average of 6% in 2012, according to an IHS iSuppli OEM Semiconductor Spend Analysis Report.
In comparison semiconductor purchasing growth in the region for global OEMs is set to average only about 2.5% for the year.
Apple is expected to post the second-highest growth among the Top 10 biggest chip-buying OEMs in the Asia-Pacific region in 2012, at 15%. But this is less than the fastest growth generated by Taiwan’s HTC at 23%.
Furthermore, for all OEMs buying chips in Asia-Pacific, the fastest growth will be posted by three indigenous companies: ZTE Corp. of China; HTC; and TCL Corp.
“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.
“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,” said Robles-Bruce.
The IHS forecast for 2013 shows semiconductor spending for this region will rise by 9.4%. However, looking only at local companies headquartered in the region, this growth rate becomes significantly higher, increasing to 15.5 percent for the year.
“The phenomenon of domestic OEMs increasing their Asia-Pacific chip spending at a faster rate than their global rivals represents a consistent long-term trend,” said Robles-Bruce.
For year 2012, ZTE is expected to show the highest growth in Asia-Pacific chip spending at 26%, followed by HTC at 23% and TCL at 22%.
Both ZTE and HTC are considered among the leading smartphone vendors on a worldwide basis, trailing market leaders Samsung, Apple, and Nokia, with a combined share of slightly more than 10%.