Samsung Could Be Get First Rank In Chip Maker Companies

Hi, Friends welcome to the Mirchitech blog. Today I want to share something special with you, and it is Samsung Could Be Getting First Rank In Chip maker Companies. Intel has been the biggest chip maker in the world since 1993. According to a report by IC Insights, the company won’t remain its position for much longer. Things are expecting to change in the second quarter of the year when Samsung could be taking the number one spot away from its rival.

Chip Maker Companies

In the April-June period, Samsung’s chip manufacturing unit is expected to post sales of $14.6 billion, which is a 4.1 percent increase when comparing with the same period a year ago. Intel, on the other hand, will reportedly post sales of $14.4 billion. This means that Samsung will officially become the biggest chip maker in the world, while Intel will be bumped down to second place.

Samsung’s great financial performance is a result of growing prices for DRAM and NAND flash chips, which are expecting to rise by 39 and 25 percent this year. This means it’s quite possible that the South Korean company could post higher full-year semiconductor sales than Intel as well.

Samsung Is The Best Chip Maker

Business hasn’t been great for Samsung’s mobile business last year, mainly because of the Galaxy Note 7 fiasco, but the chip unit compensated with soaring results. This year, things are turning for the better across the board. The tech giant has posted its best Q1 results ever and is now on track to take the world’s largest Chip maker title away from Intel, which held it for the past 24 years.

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A company that has given us most of the best PC processors has been the top chip maker since 1993 when it released its first Pentium CPU that jump-started the personal computer market. However, its 24-year reign as the top silicone supplier might be coming to an end.

If current trends in the industry continue for the next few months, Samsung will be taking the throne from Intel as the top chip maker in the world. The South Korean tech giant has to thanks its memory department for this, as the continuing rise in prices and demand for memory chips is driving Samsung’s sales up.

It is mostly Chinese consumers’ fault that memory prices skyrocketed. Users in China demand more and more high-end devices, creating more demand for the memory components that OEMs use to produce them. Samsung is making sure to capitalize on the growing demand for its DRAM and NAND flash memory chips, whose prices are expecting to rise 39% and 25% respectively.

Samsung Could Be Beat Intel And Become The Biggest Chip Maker

“If memory market prices continue to hold or increase through the second quarter and the balance of this year. Samsung could be charge into the top spot and displace Intel, which has held the No. 1 ranking from 1993,” said Research Company of us IC Insights.

McClean’s firm predicted that Intel’s chip sales for the current quarter will reach $14.4 billion, while Samsung’s will rise to $14.6 billion for the same period. That would be a 4.1% increase year-over-year for Samsung. IC Insights also said that if memory prices don’t drop in the second half of 2017. Samsung might also beat Intel in sales for the entire year. Currently, both companies are expecting to make about $60 billion in semiconductor sales in 2017.

Another research firm, Nomura Securities, also comments on the current situation, predicting record-breaking revenue for Samsung in Q2 2017. Thanks to the rising memory demand and the release of the Galaxy S8 and Galaxy S8+.

“The global demand for memory chips will continue for the time being. Samsung is predicted to post 13.5 trillion won [$12 billion] in operating profit and its chip unit is expected to record 7.4 trillion won [$6.5 billion] in operating revenue in the second quarter,” said Chung Chang-won, chief of Nomura Securities’ research center.

Conclusion

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