Tablets, smartphones leading to shift in microchip spending
Manufacturers spent more money on semiconductors for mobile devices like smartphones and tablet computers in 2011 than they did for any other form of technology, according to a report from research firm IHS iSuppli.
Global spending on chips for wireless technology topped off at $58.6 billion, accounting for nearly a quarter of the entire semiconductor market. This is an increase of more than 14 percent over 2010, when manufacturers spent a total of $51.2 billion on chips for wireless products, IHS iSuppli reports.
This trend is likely to continue during the coming years. According to IHS analyst Wenlie Ye, tablets will help push wireless technology to new heights, but smartphones are expected to account for the bulk of the semiconductor spending for the foreseeable future.
Overall, semiconductor spending increased 5 percent between 2010 and 2011, reaching $240.6 billion.
This shift toward mobile technology has been experienced in more than just the semiconductor space. Studies show that tablet computers and smartphones are rapidly ascending around the world, while sales of traditional PCs have slowed considerably in recent years.