Samsung will increase lead over Intel in chip gross sales
Samsung’s semiconductor business has been performing exceptionally well within the final couple of years. The Korean firm has posted document income in the previous couple of quarters, primarily because of the stellar efficiency by its semiconductor division. The truth that Samsung dethroned Intel as the largest chipmaker in the world in 2017 demonstrates its fast progress within the sector.
There have been reports questioning Samsung’s ability to sustain the explosive growth of its semiconductor enterprise. A minimum of for now, Samsung appears to be displaying no indicators of decelerate. Final month, the company once again posted impressive quarterly earnings with a serious contribution from its semiconductor division. Including to that proof is the Q1 2018 gross sales report from market analysis agency IC Insights which additionally exhibits Samsung’s elevated lead over Intel in chip gross sales.
In keeping with the printed numbers, Samsung outsold the second-ranked Intel by 23 % in Q1 2018 with $18.6 billion in chip gross sales, in comparison with Intel’s $15.eight billion. Samsung registered a formidable 43% YoY progress whereas Intel’s quantity stood at 11%. TSMC, SK Hynix, and Micron occupied the following three positions within the prime 5 respectively.
The report attributes Samsung’s spectacular efficiency to the demand for DRAM and NAND flash reminiscence. Out of the full Q1 semiconductor gross sales by Samsung, reminiscence chips accounted for 83 %, up from 77 % final 12 months. Samsung’s rival reminiscence chip distributors Micron Know-how and SK Hynix additionally benefited from the market situation with each of them registering 49% YoY enhance in gross sales.
Samsung does anticipate demand within the reminiscence chip market to melt general within the coming quarters which may have an effect on the corporate’s earnings from its semiconductor division. An necessary distinction to be stored in thoughts is that Samsung has been capable of attain this place on the again of reminiscence chips and never microprocessors.
Alternatively, Intel dominated the semiconductor marketplace for greater than twenty years primarily due to its reminiscence processors. A slowdown within the reminiscence chip market would possibly imply that Intel may take again its crown from Samsung sooner or later.
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