Samsung To Overcome Intel To Become World’s Most Profitable Chip Maker

Intel currently still remains the first position in the semiconductor business market and has dominated the industry for over two decades with a wide range of offerings. However, thanks to the great performance of its semiconductor, Samsung has recently been catching up Intel. And the company will gain the first position from Intel to become the world’s most profitable chip making company, according to a report.

As for a research from IC Insights, in the second quarter, Samsung will likely replace Intel to become the company’s chip business as it records a new revenue. According to a report, Intel’s revenue from chip sales is expected to gain around $14.4 billion in the second quarter, while the figure for Samsung will be $14.6 billion for the same period, which overcomes Intel to become the world’s most profitable chip making producer.

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The key factor that drives Samsung’s chip business revenue in the second quarter may be the increasing demand and higher prices in memory markets. The strong global demand for premium smartphones leads to the rise of prices for memory chips, DRAM and NAND flash up to 39% and 25%.

In the first quarter, Intel still remains the first rank with the $14.2 billion in revenue, while Samsung stops at the second position with $13.5 billion in sales. Intel has kept the top spot in the chip market since the first introduction of the series of Pentium processors in 1993. However, with becoming the most profitable business in the semiconductor space, Samsung  will gain the top position for the first time throughout the last 24 years hold by Intel.

Samsung’s chip business was also one of the top contributors in the first quarter’s earnings. The revenue was recorded $5.5 billion, which is more than half of the total revenue of the company.

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