The Largest Semiconductor Customers in 2016

Gartner has just released data on the largest semiconductor customers of 2016 that shows increased dominance of the industry from Asia, more specifically from China. The only top US company that has increased buying is Dell.

The largest companies are predominantly from the PC and smartphone space. After many years of decline in the PC markets, suppliers active in that space benefits from the growth in servers and data centres.

Even though the political establishment increasingly is becoming anti-global, the semiconductor industry continues to become more global and more dominated by the east. The same is the case for the top customers of semiconductors.

Only four companies buy more

From a growth perspective, four companies shine:

BBK Electronics is a privately held Chinese company developing and manufacturing smartphones and other consumer electronics products. The growth is likely to be in the smartphone segment where the company sells android phones with a functionality close to Samsung but in the sub 200$ segment.

Dell has outperformed other PC suppliers by some distance but some of the growth is likely to come from their acquisitions in the data centre space. There could also be increased purchasing as a result of the increasing memory pricing.

Huawei has had impressive top line growth over the period and the increase in semiconductor purchases reflect that trend. Their consumption goes into Laptops, Communication and data centres.

Samsung has not had a great year but bought more semiconductors. Some of this gain is likely to be increased pricing on memories where they also are a key player on the supply side.

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