HP, the leader in 2002 and 2003, will spend $14.5 billion on semiconductors in 2004, up 31.4 percent from $11 billion in 2003, according to iSuppli.The computer and printer giant will account for 8.7 percent of all semiconductor purchasing worldwide, according to the market research firm.

HP's semiconductor purchasing will rise another 11 percent in 2005 to reach $16.1 billion, giving it an 8.7 percent share of worldwide chip buying once again.

Dell Computer is expected to remain the number-two semiconductor purchaser in 2004 and 2005, but will close the gap with HP next year, iSuppli predicts. Dell will buy $13.4 billion worth of semiconductors in 2004, up 33.4 percent from $10.1 billion in 2003.

This will give Dell an 8 percent share of worldwide sales in 2004, up from 7.4 percent in 2003. In 2005, Dell's chip purchases will rise another 16.1 percent to reach $15.6 billion, giving it an 8.5 percent share of all semiconductor buys and putting it within 2 percentage points of HP.

Nokia was in third place in terms of chip procurement, followed by Sony, Matsushita, Samsung, IBM, Motorola, Siemens, and then Hitachi, according to iSuppli.

Motorola and Samsung Electronics in 2004 increased their purchasing at the fastest rate among the top-10 buyers, with their semiconductor procurement rising by 44.7 and 36.1 percent respectively.