Samsung Beats Intel to Be the Largest Semiconductor Manufacturer

Samsung Beats Intel to Be the Largest Semiconductor Manufacturer

Intel has been unbeatable in the production of semiconductor for quite some time. However, according to the latest earning report from Samsung (Q2 2017), it shows Samsung’s semiconductor related business got $15 billion USD out of the total $54 billion USD in revenue, which is about 27%. At the same time, Intel only earned $14.8 billion USD from making chips. For now, Samsung is the biggest semiconductor manufacturer in the world.

Intel has dominated the market for more than two decades. Intel is mostly producing the semiconductors for themselves, such as CPU for desktops and servers. Intel is struggling in the mobile devices market, which is one of the largest and fastest growing industry. Only recently, Intel is making LTE modem chips for Apple’s iPhone 7.

Unlike Intel, Samsung has invested heavily on manufacturing mobile processors and flash memory, which are all in great demand. Its customers include Apple, Qualcomm and Nvidia, just to name a few. Samsung has expanded its product lines, from DRAM modules, NAND flash to GPU. With the global shortage in DRAM and NAND chips, Samsung may be able to leverage the increased sales prices to compete with Intel.

Despite all that, there is no guarantee that Samsung can stay at the top for a long time. With TSMC and GlobalFoundries raising their scales of production rapidly, they can become one of the contenders in the near future.

Source from Engadget.

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