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February 13, 2013

Mobile applications will boost semiconductor spending by 13.5% in 2013: IHS

Original equipment manufacturer spending on semiconductors for wireless applications is expected to reach $69.6bn.

By CBR Staff Writer

According to a report by IHS, semiconductor spending among original equipment manufacturers (OEMs) for wireless applications is expected to rise by 13.5% during 2013, reaching a total of $69.6bn, up from $62.3bn in 2012.

Expenditures on wireless chipsets will rise in 2013, supporting the increasing demand for smartphones, media tablets and mobile infrastructure gear.

IHS claims that the figure represents the highest rate of growth of the seven major application markets.

IHS senior analyst for semiconductor design and spend, Myson Robles-Bruce said: "The growth in wireless semiconductor spending this year reflects the strong and sustained consumer appeal of smartphones and media tablets – as well as the robust corporate infrastructure expenditures required to support this trend.

"Mobile handsets continued to be the leading category for wireless semiconductor spending, but tablets are on the rise, with the new slate computers surpassing wireless infrastructure in 2012 for the first time ever."

The report said media tablet spending alone reached $10.5bn last year, compared to $8.7bn for wireless infrastructure. However, the largest submarket by dollar value will continue to be handsets with $46.7bn.

IHS predicts that high year-over-year growth in 2013 will be achieved by Apple and Samsung, but also predicts growth amongst LG Electronics, Huawei Technologies, ZTE and Lenovo.

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In the wireless infrastructure, IHS says that the top OEMs will remain unchanged in 2013 with Ericsson, Huawei, Alcatel-Lucent and Nokia Siemens Networks leading the way.

However, Apple and Samsung are predicted to be the greatest OEM spenders on semiconductors for media media tablets, accounting for 75% of spending in the sector.

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