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Electronics Production | March 18, 2010

Jabil, Foxconn, Flextronics to increase chip spending

Foxconn Electronics, Flextronics International and Jabil Circuit, will increase their semiconductor spending this year by about 15 percent, iSuppli predicted.
Foxconns spending will reach $22.6 billion in 2010, up 18.7 percent from $19.0 billion in 2009. According to iSuppli, the boost comes from Foxconns manufacturing of HP's computers, Nintendo's Wii, Sony's PlayStation 3 and Apple’s iPod, iPhone and iPad.

Following Foxconn, Flextronics is projected to spend $7 billion in 2010, up 8.8 percent from $6.4 billion in 2009. Flextronics customer's include Sony Ericsson, HP and Research In Motion.

Overall iSuppli said it expects these manufacturers to spend $37.7 billion on chips in 2010. OEM companies like Hewlett-Packard, Nokia, Samsung, Apple and other OEMs will spend 13 percent more on microprocessors in 2010 than in the previous year, iSuppli predicts.

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