Movingtrend – Thursday January 04, 2018
Gartner reveals that the Samsung has replaced the Intel in Global Semiconductor industry in 2017 in terms of revenue.
Samsung beats Intel in Semiconductor Industry
Intel the giant chipmaker has been securing the topped position in semiconductor industry since 1992. It is the first time Samsung unseated the Intel in global Semiconductor Industry in 2017, according to the Gartner the market research firm.
Andrew Norwood, Research Vice President at Gartner said, ” The largest memory supplier, Samsung Electronics, gained the most market share with 52.6 percent growth in revenue and took the No. 1 position from Intel. Memory accounted for more than two-thirds of all semiconductor revenue growth in 2017 and became the largest semiconductor category.”
Increasing demand from cloud and Communications service providers has enhanced 6 percent growth in data centre processor in 2017. In 2017 Intel revenue grew 6.7 percent. Intel’s PC Processor revenue increased slowly at 1.9 percent, as compared to the previous years PC prices are on rise.
Insufficient supply of stock aided 64 percent revenue growth in the memory market, the growing memory revenue was bigger due to only one factor and that is supply shortage.
The Gartner report said: ” NAND flash prices increased year over year for the first time ever, up 17 percent, while DRAM prices rose 44 percent.”
The increased prices of memory markets, affected the customers as the equipment companies passed the burden of the prices onto consumers and in return making everything from PCs to smartphones expensive in 2017.
Not only the Samsung beats the Intel in the semiconductor market but other memory vendors also performed well in 2017 named SK Hynix and Micron Technology. And according to Norwood this ranking is temporary: ”Samsung's lead is literally built on sand, in the form of memory silicon.”
He further added: ”Memory pricing will weaken in 2018, initially for NAND flash and then DRAM in 2019 as China increases its memory production capacity. We then expect Samsung to lose a lot of the revenue gains it has made.”
Samsung secured 14.6 percent market share in Global semiconductor industry in 2017 and become the topped player in the memory market. But some analyst said this ranking is not permanent. How Samsung will perform in 2018?
Source - gadgets360
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