Startups and small electronics companies offer semiconductor vendors fast and stable growth
Semiconductor companies need to diversify their sales strategy to focus on the large number of smaller organizations that offer fast and stable growth, rather than relying on big deals from large customers that are in a constant state of flux, according to Gartner.
Startups and small electronics companies spent US$78.3 billion on semiconductors in 2014, representing 23% 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% of the total semiconductor revenues; the top-11 to -100 spend about 30%; and the remainder spend 30%. Despite the top-10 accounting for such a large percentage of the market, some of the largest customers have decreased orders in the past five years, challenging the semiconductor vendors that mainly supplied to them. 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.