In 2013 there $237.2 Billion USD Spend for Semiconductors. While concentrated based on Buyer, Country and End Use there are still opportunities for Buyers outside to leverage spend based on understanding of their segment. Overall US is still top Buyer, Korea very strong, China growing but Japan still remains more relevant than most may think.

1. Top Semiconductor Buyers 2013
In 2013 there $237.2 Billion USD Spend for
Semiconductors. While concentrated based on Buyer,
Country and End Use there are still opportunities for
Buyers outside to leverage spend based on
understanding of their segment.
Willam Kohnen
January 2014

2. Overview
Total Semiconductor Spend
(Billion USD)
237.2
231.7
226.7
2011
2012
2013
• 50% of spend was for memory products
• Top 10 Worldwide Buyers account for 45% of Buying
Willam Kohnen
January 2014

3. End Use Drivers
End Use
Spend
Wireless
31%
Computer Platforms
22%
Consumer
Industrial, automotive, wired
communications and computer
peripherals.
16%
31%
• Handsets were top category for OEM chip spending in the wireless
segment.
• Top Buyers in wireless segment were Apple, Samsung, Huawei, ZTE and
LG
Willam Kohnen
January 2014

4. Willam Kohnen
January 2014

5. US Based Companies Still Largest Buyers
2013 OEM Semiconductor Spend
By Country
Spend (Billions USD)
54.7
22.2
16
US
Korean
Willam Kohnen
14.4
Japan
China
January 2014

6. Apple and Samsung Dominant
% Spend Among Top 10 2013 Semiconductor Buyers
5%
5%
Apple
4%
Samsung
28%
6%
HP
Lenovo
6%
Dell
Cisco
7%
Sony
Huawei
9%
21%
9%
Willam Kohnen
Panasonic
Toshiba
January 2014

7. Overall Apple and Samsung 22%
Apple and Samsung combined Account for 22% of Spend
Apple and Samsung
Rest All
22%
78%
Still a very large spend outside of Apple and Samsung
Willam Kohnen
January 2014

8. Some Possible Implications
• Clearly spend is concentrated by Buyer, Country and End
Use
– For equipment producers to semiconductor makers growth and
spending mostly driven by top Buyer and End Use
– Top Semiconductor Buyers drive Supply Chain Decisions for their
suppliers. (Location of: Factories, Support, Cost Focus etc)
• However …. Significant spend still exists outside of the
leaders
– Segments on the “outside” while not offering same growth
maybe more stable and profitable for semiconductor device
producers and OEMS (Industrial Analog Applications)
Willam Kohnen
January 2014

9. Buyers Approach
• If you are a Buyer in a concentrated segment wield
your leverage to fullest.
– Remember there was a time when Nokia and Motorola
were near the top of the list. Things will change.
• If you are a Buyer the other space you still have
opportunities to leverage the space you are in.
– Do not try to emulate big spenders practices
– Leverage your stability or opportunity for suppliers to
diversify
– It is NOT a given that pricing and support to can not be the
same or similar to that that Apple and Samsung get.
Willam Kohnen
January 2014