In Asia-Pacific region, local firms enjoy Apple-like chip buying perks

In Asia-Pacific region, local firms enjoy Apple-like chip buying perks

SAN FRANCISCO—Apple Inc.'s position as the largest buyer of chips gives the firm a dominant position over suppliers. But in the critical Asia-Pacific region—where most chips are bought—local OEMs are increasing spending faster and giving Apple a run for its money in supplier relationships, according to a market research firm.

Semiconductor spending among OEMs headquartered in the Asia-Pacific region is projected to grow by an average of 6 percent in 2012, compared to 2.5 percent growth for all global OEMs, according to IHS iSuppli.

Apple, is expected to increase its semiconductor spending by 15 percent in 2012, buying $28 billion worth of semiconductors, according to IHS. Apple spends the most of any company on chips by a wide and growing margin, according to IHS.

But of all OEMs buying chips in the Asia-Pacific region, the largest spending increases are expected to come from three local companies—Taiwan's HTC Corp. and China's ZTE Corp. and TCL Corp., according to IHS.



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