Home Samsung Electronics set to overtake Intel for the first time in the semiconductor business

Samsung Electronics set to overtake Intel for the first time in the semiconductor business

Intel has been on top the semiconductor business for over two decades. However, its reign seems to be coming to an end as it is almost certain that Samsung Electronics will displace Intel and claim the top spot in the second quarter of 2017. Professionals in the semiconductor industry expect Samsung to make about $15.1 billion in the semiconductor business during this second quarter which is more than what Intel is expected to make ($14.4 billion) for the same period.

We reported earlier that Samsung’s operating profit for the second quarter of 2017 is likely to surpass that of Apple and Intel. Over 50% of Samsung’s operating profit is from the semiconductor business and that is probably one of the reasons it is continuously investing heavily in that line. This will be the first time ever that Samsung will top Intel as the best semiconductor manufacturer.

Nomura Securities Co., Ltd. said that

“Prices of DRAMs and SSDs (Solid State Driver) have risen as the number of demands for DRAMs and SSDs has made a sudden increase due to generations of mobile devices.” It added, “Markets for memory semiconductors, which are Samsung Electronics’ major products, made a bigger growth than markets for CPUs that are Intel’s major products.”

Samsung Electronics surpassed Intel for the first time in history sequel to the sharp increase in the demand for NAND flash memory semiconductors, which use DRAMs and SSDs. It is also believed that if the prices of memory semiconductors do not reduce, Samsung Electronics annual performance will probably overtake that of Intel. Nomura Securities Co., Ltd. has estimated that if the current sales trend persists, Samsung will make an annual sale of $63.6 billion while Intel will manage $60.5 billion.

Since it commenced the production of CPUs for PCs in 1993, Intel has been the top semiconductor manufacturer based on sales. It has the best market for PC chips even though its major products in its early years were memory semiconductors such as SRAMs and DRAMs. It also produces motherboard chipset, flash memory, graphic chip, internal processor, and network interface controller.

IC Insights, a market research company based in the US also predicted that Samsung Electronics will surpass Intel in second quarter sales considering its semiconductor business bloom last month. Stock firms in South Korean has the same prediction that Samsung will be on top for the first time ever. Should Samsung occupy the top spot in the semiconductor business as predicted, it will be a great event for both Samsung and the semiconductor business generally.


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