Summary After nearly a quarter of a century, the semiconductor industry could see a new number one supplier.
(Web Desk) - Samsung Electronics may become the world’s largest chipmaker in the coming quarter, displacing Intel, which has retained the top spot for the past 24 years.
“If memory market prices continue to hold or increase through 2Q17 and the balance of this year, Samsung could charge into the top spot and displace Intel, which has held the No. 1 ranking since 1993,” US semiconductor market research firm IC Insights predicted Monday.
IC Insights predicted chip sales of Intel would post $14.4 billion in the second quarter, while Samsung’s chip sales would record $14.6 billion during the same period, with on-year growth of around 4.1 percent predicted.
“If achieved, this would mark a milestone achievement not only for Samsung, specifically, but for all other competing semiconductor producers who have tried for years to supplant Intel as the world’s largest supplier,” the report said.
Samsung’s strong performance is driven by the growing prices of memory chips, DRAM and NAND flash, whose prices are expected to rise 39 percent and 25 percent respectively this year, due to the growing number of Chinese consumers seeking high-end digital devices.
The research firm also said if memory prices do not tank in the second half of this year, Samsung could beat Intel in full-year semiconductor sales results as well. Currently, both companies are headed for about $60 billion in 2017 semiconductor sales.
