GEC NEWS WIREStartups, small electronics companies offer semiconductor vendors fast & stable growth
According to Gartner, Startups and small electronics companies spent US$78.3 billion on semiconductors in 2014, representing 23 percent of the total semiconductor market.
Gartner estimates there are more than 165,000 companies that buy semiconductor chips around the world: The top 10 spend nearly 40 percent of the total semiconductor revenue; While Samsung and Apple have significantly increased orders in the same period due to success in the smartphone market, semiconductor vendors are concerned about the risk of relying on large customers such as these.
China is the fastest-growing among the major small-customer regions, with spending by these organizations on semiconductors growing from US$7.5 billion in 2007 to US$14.9 billion in 2014; growth in the smartphone and media tablet markets has been strong. In the Americas, EMEA and Japan, revenue from each customer is small, but the total market size of small customers is big due to the large number of such customers.
Gartner maintains that the number of customers will significantly increase after 2017, due to future growth of the electronics market and the increase in the number of Internet of Things solutions.
“Semiconductor vendors should focus more on the high-tier customers and outsource sales activities with small customers to distributors,” said Masatsune Yamaji, principal research analyst at Gartner. “Distributors can bring various products to market at the same time, so this outsourcing will reduce the load, not just for semiconductor vendors, but also for customers.
