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ODMs: Chip Spending 2006
October 18, 2006 |Estimated reading time: 1 minute
EL SEGUNDO, Calif. Taiwanese original design manufacturers (ODMs) will dominate purchasing in semiconductor chips in 2006, primarily for PC manufacturing, says iSuppli report "ODM Semiconductor Spending Analysis." Quanta, Asustek, and Wistron the top three spenders worldwide are all based in Taiwan. All three also reportedly use the majority of chips purchased to make PCs, notably laptops. The report also predicts that, out of the top 25, the top five ODMs will account for 60% of semiconductor spending in 2006.
iSuppli reports that the top five increased semiconductor purchasing by 26.1% last year, and will generate a 24.5% increase this year, followed by a 28.6% rise in 2007. Quanta Computer Inc. led the 2006 rankings with $5.2B in chips purchased, up 17.9% from 2005. At $4.7B, Asustek stepped up chip purchases by 20.1%. The third-ranked Wistron will achieve 89% growth, according to the analyst firm, going from $1.98 to $2.25B.
About 66% of chip purchases from the top ODMs go toward manufacturing computer products, according to iSuppli. Microprocessors, logic application-specific standard products (ASSPs), and DRAMs account for the bulk of semiconductor chip purchases at the top 25. Asustek, for example, will spend approximately 75% of the $4.7B on PC-related chips. Other companies have boosted chip purchasing due to iPod manufacture or other consumer segments. iSuppli tracks trends and other data on the top 25 ODMs through the spending-analysis reports.