Analysis of Global Chip Market and Competitive Pattern in 2017

From 2001 to 2016, the scale of China's IC market increased from 126 billion yuan to about 1.2 trillion yuan, accounting for nearly 60% of the global market share, industrial sales expanded more than 23 times, from 18.8 billion yuan to 433.6 billion yuan. In 2016, China's IC industry and market compound growth rate was 38.4% and 15.1% in the global IC market downturn in the context of the Chinese market, the proportion of the global market is rising.

However, at present, the global chip is still dominated by the US and Japan-based enterprises, the high-end market is almost monopolized by the three main areas in the field of high-end chips, as domestic manufacturers have not yet formed economies of scale and cluster effect, so its production is still 'OEM 'Mode-based.

By the end of 2015, there are 94 advanced wafer manufacturers in the world, of which 17 are in the United States, 71 in Asia (9 in China) and 6 in Europe. Japan took the lead in the 1980s Since the 1990s, the global semiconductor market has dropped significantly, with only three Japanese chip makers ranking the top 20 in the world by 2030 - Toshiba, Renesas Electronics and Sony by 2015. Meanwhile, other East Asian countries have become DRAM companies, South Korea's Samsung Electronics and Haishili are the world's second and third largest semiconductor companies.

According to the latest statistics from the US Semiconductor Industry Association (SIA), the chip market share in China and the United States increased by 33.10% and 19.73% in January and February of 2017, respectively. The market share of Japanese and European chips declined, respectively. To 9.29% and 9.12%. China's chip market is the world's largest and fastest growing market, but the external dependence is too high.

2016 - 2017 Global Chip Industry Market Area Distribution (Unit:%)

2017 global chip industry competition pattern

Since January 1993, Intel has been the world's largest chip maker, and its sales of 386 and 486 processors have a strong impact on Japanese chip companies, such as NEC and Toshiba. 1993 released the first generation of Pentium CPU and after Ten years of Windows 95 and 98 personal computer boom, Intel will push the industry leading position.Currently, Intel's annual revenue rate is still growing - whether from the PC, data center server, or Internet of things chip.

Intel is still the world's largest chip supplier, the annual chip sales of 54.09 billion US dollars, up 4.6% over 2015, the market share of 15.7%; the second is Samsung Electronics, 2016 chip revenue of 40.1 billion US dollars, Compared with 2015 growth of 5.9%, accounting for 11.7% market share; Qualcomm ranked third, chip revenue reached 15.4 billion US dollars, down 4.4% compared with 2015; SK Hynix ranked fourth, sales of 14.7 billion US dollars, down 10.2%.

It is noteworthy that the 2016 chip sales ranked fifth in the Broadcom, last year ranked only 17, suddenly jumped 12 ranking, 2016 chip sales of 13.2 billion US dollars, compared with 4.5 billion in 2015 increased by 191.1%.

2015 - 2016 Global chip vendor sales TOP10 (in millions of dollars,%)

In April 2017, Samsung Electronics announced first quarter 2017 results, thanks to the continued strong performance of the storage chips and Galaxy S8 and S8 + for the global release, Samsung's first quarter 2017 net profit soared 46.29%, reaching a four-year high From the strong performance of Samsung Electronics in recent years, Samsung's chip business in the second quarter of 2017 will likely surpass Intel and become the No. 1 in the global semiconductor market.

If Samsung really surpassed Intel in Q2, it was not only a milestone achievement for Samsung, but it was also a very important news for all other manufacturers around the world trying to replace Intel as the world's largest semiconductor supplier In Q1 2010, Intel 's sales were 40% higher than Samsung, but in just over a year, this advantage no longer exists, and Intel may find its quarterly sales decline.

2016 - 2017 Intel and Samsung Semiconductor business revenue comparison and forecast

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