Intel Might be Losing Their Crown to Samsung

Looks like Samsung could be taking over Intel as world’s largest semiconductor supplier.

Intel has dominated the market for nearly quarter of a decade, topping tables as the #1 supplier since 1993. However a recent prediction by IC Insights note that if memory prices continue to hold or increase through 2Q17 and the balance of this year, Samsung could be taking over as king.

“Using the mid range sales guidance set by Intel for 2Q17, and a modest, yet typical, 2Q sales increase of 7.5% for Samsung, the South Korean supplier would unseat Intel as the world’s leading semiconductor supplier in 2Q17.” the report wrote.

This means, for all other players in the semiconductor industry, they could be looking at alternative competition. Instead of besting Intel, they would need to start looking towards besting Samsung instead.

In 1Q16, Intel’s sales were 40% greater than Samsung’s, but in just over a year’s time, that lead may be erased and Intel may find itself trailing in quarterly sales.

The drive in increasing sales for Samsung could be attributed to the rise of DRAM and NAND flash average selling prices. While IC Insights expects that the flash pricing boost will begin to cool in the second half of the year, there’s still healthy room for growth, with forecast of 39% growth for the 2017 DRAM market and 25% growth in the NAND flash market.

As shown in Figure 3, Intel has been locked in as the world’s top semiconductor manufacturer since 1993 when it introduced its x486 processor and soon thereafter, its revolutionary Pentium processor, which sent sales of personal computers soaring to new heights.

It’s been 24 years and no one has came close to surpassing Intel as the lead. However, if memory price isn’t dropping, Samsung very realistically could kick them off the top spot.

 

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