Through its acquisition of Nokia, Microsoft will officially become one of the world's Top 10 original equipment manufacturer (OEM) semiconductor buyers.

As a result, IHS reported this week, Microsoft will soon rank among the leading purchasers of microchips for wireless applications.

Microsoft in 2014 is expected to become the eighth-largest OEM chip buyer, according to the Semiconductor Design and Spend Analysis service of IHS Inc. This is up from No. 13 this year and 15th place in 2012.
When it comes down to dollars and cents, estimates suggest Microsoft will spend $5.9 billion next year on semiconductors. That's up markedly from $3.55 billion in 2012 and $3.78 billion this year.

"The 2012 and 2013 revenue figures do not include spending generated by the Nokia buy, while 2014 presents post-acquisition purchasing," IHS reports. "The Nokia deal will add about $2 billion to what Microsoft would otherwise spend on semiconductors for 2014."

Microsoft's new higher standing in 2014 also means it will be vying for fourth place in chip spending for wireless applications—along with a group of companies including ZTE, LG Electronics, TCL, and Ericsson.

"If Microsoft takes the No. 4 rank in wireless chip purchasing in 20214, it will still be behind market leaders Apple, Samsung Electronics and Huawei Technologies," the report concludes.

Source: IHS