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Samsung Overtakes Intel as World’s Biggest Chip-making Company

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Published on : Jan 31, 2018

Smartphones and laptops are now ubiquitous and consequently, the demand for electronic chips has gone through the roof in the recent times. However, while Intel Corp. did manage to register a new revenue peak in 2017, they have been dislodged from the pole position by Samsung Electronics Co.

According to the latest reports, Samsung sold chips worth of US$69 billion in 2017, going past Intel’s US$63 billion revenue from sales the same year. It must be noted that Intel has been holding the leading position since 1992 in terms of chipmaking. It has been observed that escalating prices on the back of memory shortages has propelled Samsung into the leading position on semiconductor vendor revenue.

The surge of Samsung is a reflection of how the South Korean company has been transforming itself, evolving from being a cheap television maker into a prominent supplier of essential components in smartphones and other computing devices. On the other hand, Intel continues to dominate the demand for chips for computers and registered a six percent growth. The radical rise in the demand for smartphones and tablets, which easily outsells the number of laptops and personal computers, has been attributed to the rise of Samsung. In addition to that, the automotive sector is further adding to the demand for chips from Samsung, finding their way into a range of new components.

It must be noted that the U.S. Company is primed to face even stiffer challenge in the near future as Samsung has already made a foray into making high-priced components.