Device makers spent more on chips for wireless products last year than on chips for computers or any other product. The latest research from IHS iSuppli shows semiconductor spending for wireless products at $58.6 billion in 2011, up more than 14% from 2010.
Wireless semiconductor spending by major original equipment manufacturers exceeded that for computers back in 2009, then PCs moved ahead in 2010. Now wireless products are back in the lead, and IHS says they are on top to stay. “The market for desktops and notebooks has stumbled in the shadow of smartphones and tablets, whose portability and computer-like features have usurped the position of the once-mighty PCs,” said Wenlie Ye, analyst for semiconductor design and spend at IHS.
Among the companies poised to benefit from this trend are Qualcomm (QCOM), ARM (ARMH), Marvell (MRVL) and Samsung (KS), all of which make chips for Apple’s iPhone 4S. Industry giants Intel (INTC) and Texas Instruments (TXN) are both scrambling to get into the wireless market, with Intel already slated to supply chips to two new smartphones this year.
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