Chip Spending Increased by 25.2% in 2021

According to a new Gartner report, chip spending increased by 25.25 in 2021. The increase was caused by top 10 semiconductors buyers, who increased their chip spending by 25.2%, accounting for 42.1% of the total market.

Apple was at the top on spending semiconductors in 2021. The company increased its spending by 36.8% on memory and 20.2% on non-memory chips during the last year. The company also decreased its demand for computing micro-processing units because of the shift to its own in-house-designed application processors. 

Other than Apple, Samsung Electronics also increased its memory spending by 34.1% and non-memory chip spending by 23.9% in 2021. The increase in memory spending did not just result in a price rise but also affected Samsung’s growth in its target electronic equipment market.

The research director at Gartner, Masatsune Yamaji has said that the semiconductor vendors shipped more chips in 2021 but the demand was higher than the production capacity of vendors. The global chip shortage prevented OEMs from increasing their production. It included auto manufacturers and major smartphones and video game consoles.