Quanta and Asustek Lead ODM Chip Spending in 2006

Quanta Computer Inc. and Asustek Computer Inc. are expected to be the leading buyers of semiconductors among all Original Design Manufacturers (ODMs) in 2006, although Wistron Corp. will achieve the fastest chip spending growth in the industry for the year, according to data from iSuppli Corp.’s new ODM Semiconductor Spending Analysis service.

Semiconductor spending by Taiwan-based Quanta will rise to $5.2 billion in 2006, up 17.9 percent from $4.4 billion in 2005, allowing it to keep the number-one position it has held in ODM chip buying at least since 2004. Meanwhile, Asustek, also of Taiwan, will buy $4.7 billion worth of semiconductors in 2006, up 20.1 percent from $3.9 billion in 2005, solidifying its hold on second place.

“Most of Quanta’s chip purchasing is for making computer products, mainly notebook PCs,” observed Min-Sun Moon, analyst, OEM semiconductor spending and design influence for iSuppli. “Because of this, PC-oriented chips like microprocessors, logic Application-Specific Standard Products (ASSPs) and DRAMs are the major types of semiconductors that Quanta is expected to buy in 2006.”

Asustek also relies heavily on the PC market, with 75 percent of its total ODM semiconductor spending in 2006 expected to be dedicated to computing-related chips, Moon noted.

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