By the end of this year, Samsung had already defeated Intel by earning the revenue as the world's largest chip maker.
This is a major achievement for Samsung, although Intel processors are used in most computers worldwide. Although Samsung also manufactures processors, they are mainly used for mobile devices, not desktop/laptop computers.
Samsung’s leading position is based on its dominant position in the memory chip market. Some analysts expect this trend to decline this year, which may lead Intel to regain the laurel from Samsung.
The reversal of prices may make Intel once again lead.
The research company IHS Markit released its 2017 global semiconductor industry data, which also confirmed that Samsung has surpassed Intel to become the world’s largest revenue-based semiconductor supplier. Samsung’s annual sales increased by 53.6% year-on-year.
Samsung dominates the global memory chip market. Today, you will find it difficult to find that there is no RAM from Samsung within your smartphone or tablet. The company's position in the SSD market has also improved significantly.
Therefore, Samsung’s revenue growth is driven by its memory chips, while Intel relies on its microprocessors. IHS and Gartner’s analysts point out that Samsung’s leading position is not as strong as Intel's 25 years ago. Because the latter's leading position mainly depends on the microprocessor.
Samsung's revenue last year was due to a substantial increase in the price of memory chips, and two-thirds of the company's revenue growth came from its memory products. Analysts expect that as Chinese manufacturers increase production capacity, the price of NAND flash memory will be somewhat in 2019. decline.
Andrew Norwood, an analyst at Gartner, said: 'We expect Samsung will lose a lot of revenue it earned.'
IHS Markit analyst Shaun Teevens also made similar predictions. He said that if there is a strong reversal of memory pricing, Intel is likely to recapture the highest position.