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 Home > News > General Computing > Samsung...
Last 7 Days News : SU MO TU WE TH FR SA All News

Thursday, January 4, 2018
Samsung Takes Over No. 1 Position in Global Semiconductor Market


Samsung Electronics has gained the most semiconductor market share and took the No. 1 position from Intel - the first time Intel has been toppled since 1992.

Worldwide semiconductor revenue totalled $419.7 billion in 2017, a 22.2 percent increase from 2016, according to preliminary results by Gartner, Inc.

Undersupply helped drive 64 percent revenue growth in the memory market, which accounted for 31 percent of total semiconductor revenue in 2017.

"Memory accounted for more than two-thirds of all semiconductor revenue growth in 2017, and became the largest semiconductor category, " said Andrew Norwood, research vice president at Gartner.

The key driver behind the booming memory revenue was higher prices due to a supply shortage. NAND flash prices increased year over year for the first time ever, up 17 percent, while DRAM prices rose 44 percent.

Equipment companies could not absorb these price increases so passed them onto consumers, making everything from PCs to smartphones more expensive in 2017.

2017 Rank

2016 Rank

Vendor

2017 Revenue

2017 Market Share (%)

2016 Revenue

2016-2017 Growth (%)

1

2

Samsung Electronics

61,215

14.6

40,104

52.6

2

1

Intel

57,712

13.8

54,091

6.7

3

4

SK Hynix

26,309

6.3

14,700

79.0

4

6

Micron Technology

23,062

5.5

12,950

78.1

5

3

Qualcomm

17,063

4.1

15,415

10.7

6

5

Broadcom

15,490

3.7

13,223

17.1

7

7

Texas Instruments

13,806

3.3

11,901

16.0

8

8

Toshiba

12,813

3.1

9,918

29.2

9

17

Western Digital

9,181

2.2

4,170

120.2

10

9

NXP

8,651

2.1

9,306

-7.0

 

 

Others

174,418

41.6

157,736

10.6

 

 

Total Market

419,720

100.0

343,514

22.2

Source: Gartner (January 2018)

Other major memory vendors, including SK Hynix and Micron Technology, also performed strongly in 2017 and rose in the rankings, Gartner said.

Second-placed Intel grew its revenue 6.7 percent in 2017, driven by 6 percent growth in data center processor revenue due to demand from cloud and communications service providers. Intel's PC processor revenue grew more slowly at 1.9 percent, but average PC prices are on the rise again after years of decline following the market's shift from traditional desktops toward two-in-one and ultramobile devices.

The current rankings may not last long, however, "Samsung's lead is literally built on sand, in the form of memory silicon," said Mr. Norwood. "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."

2017 was a relatively quiet year for mergers and acquisitions. Qualcomm's acquisition of NXP was one big deal that was expected to close in 2017, but did not. Qualcomm still plans to complete the deal in 2018, but this has now been complicated by Broadcom's attempted takeover of Qualcomm.

"The combined revenues of Broadcom, Qualcomm and NXP were $41.2 billion in 2017 - a total beaten only by Samsung and Intel," said Mr. Norwood. "If Broadcom can finalize this double acquisition and Samsung's memory revenue falls as forecast, then Samsung could slip to third place during the next memory downturn in 2019."


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