Samsung Tops Giant Chip Maker Intel Two Decades Later

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Samsung Electronics has finally overthrown its rival Chip maker monster, Intel. Gartner, the statistical surveying firm, on Thursday, gave a report showing that Samsung has supplanted the world’s best player in the field after more than two decades.

The 2017 report shows that since 1992, this is the first time Intel has experienced a downfall in the worldwide semiconductor industry.

In 2016, the Korean based company recorded 52.6 percent sales in the market, this is $40.1 billion. In Gartner’s first round market survey report, Samsung’s revenue increased for 14.6 percent in the global chip market. This accounted for $61.2 billion.

The American multinational corporation and technology company Intel, which has enjoyed dominance for more than two decades, recorded a mere 6.7 percent increase in its sales to $57.7 billion.

“The largest memory supplier, Samsung electronics, gained the biggest market share and took the top position from Intel. This the first time Intel has lost since 1992,” said Gartner’s research vice president, Andrew Norwood.

Critical Drivers Behind Samsung’s Ascent Over Intel

According to the global research company, ‘Memory Chip Boom’ is the key driver in the growth of Samsung in the industry. In 2017 revenue report, the memory accounted for two-thirds of all semiconductors.

For the first time, as per Gartner’s, NAND flash memory saw a 17 percent price increase. This was between 2016 and 2017. While DRAM recorded a 44 percent price increase.

The single growth in Intel is because of the PC processor’s poor performance affected by slow market and shifting to mobile phones. This recorded only a 1.9 percent gain in the revenue.

Apart from Samsung and Intel, other suppliers performed well in 2017 due to the world’s high demand for chips.

The world’s second-largest memory chip maker, SK Hynix, took position three. It recorded a market share of 6.3 percent growth, which is $26.3 billion from $14.7 billion in 2016.

Micron technology took position four with 5.5 percent increase, while Qualcomm closed the world’s top five best with 4.1 percent.

However, Norwood says that due to memory production capacity in China, Samsung is expected to lose its revenue gain come 2019.