As predicted by analysts, the world market for semiconductors was replaced by a leader. This became clear after the publication of financial reports for the second quarter of 2017 of the two largest chipmakers - the South Korean company Samsung and the American corporation Intel.
On the eve of Samsung Electronics reported that in April-June of 2017 operating profit in its division, responsible for the production of chips, tripled and amounted to 8.03 trillion won (7.1 billion US dollars) against 2.64 trillion won a year earlier. Yonhap News observers note that such high rates were registered for the first time.
Revenues from semiconductor sales rose 46% to 17.6 trillion won ($ 15.7 billion), supported by strong demand and a rise in price of server DRAM-memory and SSD-drives.
The next day became known and the financial performance of Intel. The processor giant reported revenue of $ 14.8 billion and operating profit of $ 3.8 billion in the past quarter. Although Intel's operating income grew by as much as 190% year-on-year, it was not enough to catch up with Samsung.
Also, the South Korean vendor outperformed the American rival and by the ratio of operating profit to revenue: Samsung accounted for 45.7%, while Intel - only 25.7%.
Almost a quarter of a century, since 1992, Intel has consistently ranked first in revenue among chipmakers, and moving the palm to Samsung is a significant event for the industry. Analysts of IC Insights predicted the castling in May 2017, noting that by the end of the year leadership will most likely also remain for Samsung.
Semiconductor business Samsung made the main contribution to the record indicators of the conglomerate as a whole. The company's net profit in April-June amounted to 11.05 trillion won (about 9.9 billion dollars), which is 89% more than a year earlier and is the best result in the company's history. Highest for all time, the level reached and operating profit, which increased by 73%, to 14.07 trillion won (12.
6 billion dollars).
It is not clear how long Samsung will be able to retain leadership, because its rise occurred against the backdrop of growing sales of DRAM-memory and NAND flash chips, and these directions are known for their cyclicality, notes EETimes. Market experts predict that the next period of decline in the memory market may begin in late 2018 or early 2019, with the launch of new production facilities and the entry of Chinese competitors on the market.