Samsung Electronics Set to Beat out Intel in Sales from Semiconductor Industries

There are predictions that Samsung Electronics will beat out Intel in second quarter of this year and rise to the number one semiconductor business in the world. Intel, which specializes in CPUs for PCs, has maintained the number position in sales in semiconductor markets for 24 years since 1993. Samsung Electronics officially entered semiconductor business in 1983 and if it is able to beat out Intel, it will finally rise to the top since it entered semiconductor business 34 years ago.

According to a market research company called IC Insights, IC Insights put out such prediction after estimating their performance in second quarter. According to performance guidance that was presented by Intel, it is estimated that Intel will make about $14.4 billion in sales in second quarter. On the other hand, it estimated that Samsung Electronics will make about $14.94 billion which is about 7.5% increase from sales in first quarter.

Just in first quarter of last year, Intel’s sales were 40% more than Samsung Electronics’ sales. However reason why Samsung Electronics is predicted to beat out Intel in just a year is due to increase in prices of memories. Prices of DRAMs and NAND flash memories, which are Samsung Electronics’ major sales items, are continuing to go up since last year. IC Insights is estimating that prices of DRAMs and NAND flash memories will increase by 39% and 25% respectively by end of this year. IC Insights is predicting that Samsung Electronics will be able to bea out Intel even in yearly performance if memory industries continue to boom in second half of this year.

After releasing x486 Processor in 1993, Intel has been holding on to the number one position in semiconductor industries for 24 years. Although there were times when Japan’s NEC and Toshiba threatened Intel’s position, they were never able to beat out Intel for the number one position.

Chairman Lee Byung-chul, who is the founder of Samsung, decided to enter semiconductor business in 1983 in Tokyo, Japan. This decision is known as ‘2.8 Tokyo Idea’ within Samsung. Semiconductor business, which started with 2.8 Tokyo Idea, is finally seeing light in a tunnel after 34 years. Samsung Electronics already beat out SONY in TV business and Nokia and Apple in cellphone business. Semiconductor is known as ‘the rice of industries’ as they are needed in manufacturing finished products such as TVs and cellphones. This is why it is very meaningful and special that Samsung Electronics is predicted to beat out Intel and rise to the number one position in semiconductor industries.

“If Samsung Electronics is able to beat out Intel in sales, it will go down as a special event in semiconductor industries.” said IC Insights.

Samsung Electronics has advantages in memory semiconductor field. Its market shares in global markets for DRAM that temporarily saves data which is needed in data calculation are close to 50% and its market shares in global markets for NAND flash memories that are used as storage devices exceed 40%. Samsung Electronics had defeated its competitors in chicken games between memory semiconductor companies that had taken place for many years in the past and are earning enormous amount of profit. Its SoC (System on Chip) business, which is used for Smartphones and cars, is also growing continuously. Its foundry business, which carries out consignment production on system semiconductors that are designed by foreign companies, has competitive edge as it has global leading semiconductor companies such as Qualcomm, NVIDIA, and NXP as its customers.

Staff Reporter Han, Juyeop | [email protected]