Samsung Electronics has overtaken Intel as world’s biggest maker of semiconductors: Gartner

Samsung Electronics has overtaken Intel as world's biggest maker of semiconductors: Gartner

In keeping with a research by Gartner, Samsung Electronics has overtaken US rival Intel because the world’s largest maker of semi-conductors as gross sales, whereas worldwide semiconductor income totalled $419.7 billion in 2017, a 22.2 p.c enhance from 2016.

Samsung Electronics has overtaken Intel as  world's biggest chip maker

“The biggest reminiscence provider, Samsung Electronics, gained probably the most market share and took the No. 1 place from Intel – the primary time Intel has been toppled since 1992,” mentioned Andrew Norwood, analysis vp at Gartner.

He mentioned, “Reminiscence accounted for greater than two-thirds of all semiconductor income progress in 2017, and have become the most important semiconductor class.”

The report mentioned that second-placed Intel grew its income 6.7 p.c in 2017, pushed by 6 p.c progress in information heart processor income as a result of demand from cloud and communications service suppliers.

Intel’s PC processor income grew extra slowly at 1.9 p.c, however common PC costs are on the rise once more after years of decline following the market’s shift from conventional desktops towards two-in-one and ultramobile gadgets.

The important thing driver behind the booming reminiscence income had been increased costs as a result of a provide scarcity, the research mentioned.

NAND flash costs elevated year-on-year for the primary time ever, up 17 p.c, whereas DRAM costs rose 44 p.c.

Gartner identified that, the present rankings might not final lengthy, nonetheless, “Samsung’s lead is actually constructed on sand, within the type of reminiscence silicon,” mentioned Norwood. “Reminiscence pricing will weaken in 2018, initially for NAND flash after which DRAM in 2019 as China will increase its reminiscence manufacturing capability. We then count on Samsung to lose lots of the income positive factors it has made.”

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“2017 was a comparatively quiet yr for mergers and acquisitions. Qualcomm’s acquisition of NXP was one large deal that was anticipated to shut in 2017, however didn’t. Qualcomm nonetheless plans to finish the deal in 2018, however this has now been difficult by Broadcom’s tried takeover of Qualcomm,” Gartner additional mentioned.

“The mixed revenues of Broadcom, Qualcomm and NXP had been $41.2 billion in 2017 – a complete overwhelmed solely by Samsung and Intel,” mentioned Norwood. “If Broadcom can finalize this double acquisition and Samsung’s reminiscence income falls as forecast, then Samsung may slip to 3rd place through the subsequent reminiscence downturn in 2019.”

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