Chip firms target smaller customers

Global SourcesUpdated on 2023/12/01

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Small companies and startups spent $78.3 billion in chips in 2014, according to Gartner.

Chipmakers are increasing efforts to target small customers and startups, which cumulatively buy nearly $80 billion in semiconductors each year. Source: EETimes

The semiconductor industry has justifiably focused on a handful of large electronics manufacturers, looking to score design wins in high-volume products that will enable them to sell a boatload of chips. While landing big deals with high-touch sales strategies remains the former's bread and butter, a growing number of chipmakers are also devoting more resources to attract small companies.

Targeting the big fish is still good business. The top 100 semiconductor buyers are responsible for 70 percent of all chip revenue, according to a recent report from Gartner. Those in the top 10 alone account for 40 percent.

Sure, everyone wants that next Apple or Samsung design win that is going to be worth millions of dollars. But Gartner estimates that there are more than 165,000 companies that buy chips worldwide. The top 100 may represent the lion's share of sales, but that still leaves the 30 percent on the table. That portion of a $340 billion market is nothing to sneeze at.

To read the full article, please go to EETimes.

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