Thanks to high demand for memory chips, Samsung Electronics will become the world's largest chip maker by the results of the second quarter of 2017, for the first time outperforming the Intel corporation, according to Nomura analysts,.
Observers remind that Intel has headed the semiconductor industry since 1993, after the release of PC-processors Pentium. However, the subsequent decline in the PC industry on the background of the rapid growth of the popularity of mobile devices around the world allowed Samsung to catch up with its American rival. The South Korean vendor is the largest manufacturer of memory chips, the most important components for all smartphones, tablets and other computer devices. Also Samsung releases its own application processors for smartphones and manufactures mobile chips for other vendors, including Apple and Qualcomm. Intel, on the contrary, has difficulties with promotion in the mobile market.
According to Nomura estimates, in April-June semiconductor products sales will bring Samsung $ 15.1 billion, while Intel expects a similar figure of $ 14.4 billion. In addition, experts believe that Samsung will take the first place in revenue from chips and following the results of 2017, unless it is prevented by a sudden drop in prices for memory chips in the second half of the year. It is expected that this year Samsung's semiconductor revenue will reach $ 63.6 billion, while Intel will complete the year with a $ 60.5 billion result.
"In the age of mobile devices, the demand for DRAM-memory and SSD-drives increased significantly, which contributed to the rise in prices for these components in a deficit. The market of memory chips has now become more than the CPU market, "- commented analyst Nomura C. Chung (CW Chung).
Experts point out that the rise in price of memory chips is one of the main reasons for the stronger positions of Samsung. In the first half of 2017, the average price of DRAM-chips rose by 25% compared to the same period in 2016, while in the segment of NAND flash there was an increase of about 15%, point to Nomura. Moreover, a further increase in prices is expected in the third quarter.
Similar to Nomura point of view previously expressed in the research company IC Insights. According to her forecast, in April-June 2017 semiconductor revenue of the South Korean vendor will reach $ 14.9 billion, and Intel - $ 14.4 billion. If memory prices do not fall in the second half of the year, Samsung may well push out Intel from the first place and in the annual rating, IC Insights. Annual sales of semiconductors from Samsung, as well as from Intel, are expected in the region of $ 60 billion.