IC Insights Crowns Intel As The Leading Semiconductor Manufacturer Previously Held By Samsung
Recently, memory shipments have slowed down due to a lower need for memory and the CPU market has not slowed down. From this Intel was able to regain the spot as the number one semiconductor manufacturer in the world. All of this comes from IC Insights which is a research firm.
Collapse Of DRAM Market Caused Samsungs Fall
The collapse of the DRAM has led Samsung to issue a earnings warning after they revealed the 60 percent loss in profit. Most of Samsung’s revenue comes from the DRAM market which many analysts said that there would be double-digit losses in the market. Samsung hasn’t had much success on their other fronts with the decreased shipments of smartphones, displays, and image sensors. To put a number on Samsung’s dependence on the DRAM market, 88 percent of its revenue comes from the DRAM market.
There is still hope for Samsung as analysts are expecting the market to rebound in Q3 with prices stabilizing. All of this is not guaranteed as the trade war between China and the U.S. cast a lot of uncertainties. Even with the recovery of the DRAM market could Samsung dethrone Intel as the leading semiconductor manufacturer.
This is how IC Insights explained their findings:
"While Samsung held the full-year number one ranking in 2017 and 2018, Intel is forecast to easily recapture the number one ranking for the full-year of 2019, a position it previously held from 1993 through 2016. With the collapse of the DRAM and NAND flash markets over the past year, a complete switch has occurred, with Samsung having 23% more total semiconductor sales than Intel in 1Q18 but Intel having 23% more semiconductor sales than Samsung just one year later in 1Q19!"
Intel has taken the spot but is it time someone else comes to challenge them. With the CPU shortages and lack of innovation from Intel, AMD could be a well-suited captor of this position.
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