Chinese tech giant Huawei saw a 23.5 percent drop in semiconductor spending in 2020 compared to 2019, according to data released Tuesday by market research firm Gartner on the world's top 10 chip buyers.
"The US government increased trade restrictions on Huawei in 2020, limiting its ability to purchase semiconductors, which, in turn, limited its smartphone supply and reduced its market share," said Masatsune Yamaji, research director at Gartner.
However, the Chinese market remains important for semiconductor vendors, as other Chinese smartphone OEMs stepped in to fill the vacuum created by Huawei in the second half of 2020, he said.
The top 10 OEMs increased their semiconductor spending by 10 percent in 2020, representing 42 percent of the total market, up from 40.9 percent in 2019. The top 10 companies in 2020 remain unchanged from 2019.
Apple continues to lead after regaining the top spot in 2019, with its market share now up to 11.9 percent, pulling further away from Samsung Electronics (which now has an 8.1 percent market share), according to the data.
Among the top 10 companies, Xiaomi saw the most growth in spending in 2020 (26 percent), and the sanctions against Huawei enabled Xiaomi to gain more market share in the smartphone market, the report added.
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