In addition, SK Hynix rose from fourth place in 2016 to third place, with Micron ascending fastest, rising from sixth place in 2016 to fourth place. Western Digital did not make it into the top ten in 2016, and in 2017 one. Jumped to the ninth position.
Among the top ten companies in the top ten 2017 rankings are: Intel fell back to second place from 2016 first, Qualcomm retreated from third place in 2016 to fourth place, Broadcom retreated from fifth place in 2016 to In the sixth place, NXP retreated from the ninth place in 2016 to the tenth place. In 2016, the tenth MediaTek has dropped out of the top ten.
Exhibit 1: TOP10 global semiconductor revenue in 2017 (Unit: Million US Dollars, %)
The growth rate of the world’s top ten semiconductor companies in 2017: Several happy friends
Prospective Industry Research Institute's "China Semiconductor Industry Strategic Planning and Corporate Strategy Consultation Report for 2018-2023" data shows that in 2017, the world's semiconductor industry grew by 22.2%, mainly due to the rapid expansion of market demand for memory products. Capacity has not been expanded and grasped at that time. In the top three hands, the shortage of the market caused a surge in memory prices. Among them, the NAND Flash price increased by 17%, and the DRAM memory chip increased by 44%. As a result, the memory maker: Samsung Semiconductor increased 52.6% year-on-year, SK Hynix Growth of 79%, Micron increased by 78.1%, Toshiba increased by 29.2%.
Western Digital joined forces with Toshiba to enter the memory chip business, benefiting from 2017, an increase of 120.2% year-on-year, and making it one of the top ten companies in the world's semiconductor industry for the first time.
In contrast, in the 2017 world semiconductor market, data center processors only increased by 6%, PC processors only increased by 1.9%, and Intel increased by only 6.7%. In addition, the growth rates of Qualcomm, Broadcom, and TSMC were lower than the industry Overall, NXP, MediaTek has seen a drop in performance.
Exhibit 2: Comparison of Sales Growth Rates of Major Global Semiconductor Companies in 2017: Several Happy Friends
Samsung: First place in the semiconductor industry for the first time, and it is expected to take the top place in 2018
In 2017, Samsung's revenue increased by 19% year-on-year to 239.58 trillion won (approximately US$223.456 billion), and operating profit increased by 83% year-on-year to 53.65 trillion won (approximately US$50.39 billion). Of which, semiconductor sales were US$62.1 billion. Accounted for 30% of the total revenue, more than Intel topped the list of global semiconductors.
Among them, the strong demand for memory chips has become a major factor driving Samsung Electronics's profitability. Storage and display business have increased by 54% and 51% respectively in the fourth quarter of last year. Consumer appliances and mobile communications services have declined slightly year-on-year. This data is sufficient to prove that Samsung's revenue center has gradually shifted from consumer products to storage, display and other raw materials.
In 2018, Samsung expects that the world will maintain strong demand for NAND, DRAM and server SSDs, and Samsung Electronics will also actively expand its own SoC applications in areas such as automotive, VR and Internet of Things. So even if foundry The business is about to bottom out. Samsung is still very optimistic about this sector.
Exhibit 3: Samsung Semiconductor Sales and Forecasts for 2015-2018 (Unit: US$100 million)
Intel: Lost in the 25-year championship seat, the future focus will shift further
Since 1992, Intel has occupied the throne of the world's largest chip maker. This time it was surpassed by Samsung. It is very difficult for them to re-embark. After all, the chip is already Samsung's most important revenue.
In fact, Samsung’s revenue on chips exceeds that of Intel, which is still inevitable. The latter still relies on PC CPU revenue, and the PC market is saturated. Although the demand for memory chips is expected to continue to soar, if the chip manufacturers increase capacity, its price may be Decline. In contrast, Samsung appears to be diversified in terms of chip revenue. One is the increase in storage capacity of smart machines, and the other is the booming development of the data center industry.
In addition, Intel expects revenue for fiscal year 2018 to be 650 billion U.S. dollars, which will fluctuate by 1 billion U.S. dollars. According to the FactSet survey, analysts on average expect Intel's revenue for the fiscal year 2018 to be 63.86 billion U.S. dollars. No matter what kind of expectation, The gap between Samsung will be further widened.
Exhibit 4: Intel Semiconductor Sales and Forecasts 2015-2018 (Unit: Billion US Dollars)
Sustained skyrocketing: Western Digital, SK Hynix, Micron
Thanks to the dramatic increase in DRAM prices and continuous improvement in market demand, both Micron and SK hynix achieved significant growth in their revenues: Micron's fourth-quarter growth was 10.3% over the third quarter, of which DRAM sales increased by 5%, and NAND sales increased. 3%, and the average selling price of DRAM and NAND also rose by 8% and 5% respectively; SK hynix’s revenue in the fourth quarter of 2017 increased by 69% to 9 trillion won, net profit almost doubled, and 4.5 trillion won ( About RMB 27 billion, which is a significant increase of 97.7% compared to the same period in 2016.
Driven by the growth of global data centers, the demand for server memory is particularly strong and will continue to drive the profit growth of these companies in 2018. They will also expand new production lines to meet market demand.
Exhibit 5: 2017 Hynix, Micron Revenue Growth (Unit: %)
Significantly lower: MediaTek, NXP
In 2017, MediaTek’s full-year revenue was NT$238.126 billion, which was 13.54% lower than 2016, and its performance was extremely poor. It was due to the fact that its mobile phone chips had a total loss in 'low, medium and high', although MediaTek Cai Lixing stressed that We will continue to intensively cultivate the Chinese market and integrate it with land-based plants to grasp emerging market growth opportunities. However, in the long run, the gradual marginalization of MediaTek seems inevitable.
However, the two major events that may occur at Mediatek in the near future may be expected to change the situation of MediaTek. One is that MediaTek took orders for Wi-Fi chips from Apple's smart home phone HomePod. In addition, MediaTek is precisely laying out the Indian mobile phone market and smart speaker market if MediaTek can expand India. The share of the mobile phone market and smart speaker market may not be impossible in the future.