Samsung Electronics Becoming Likely to Surpass Intel for the First Time in Semiconductor Business

It is becoming almost certain that Samsung Electronics surpassed Intel during second quarter of this year and has become the top semiconductor business globally. Although Intel has reigned as the top semiconductor business for past 24 years, there is a high chance that Samsung Electronics surpassed Intel during this second quarter.

According to semiconductor industries and foreign press on the 2nd, Nomura Securities Co., Ltd. Is estimating that Samsung Electronics made $15.1 billion in semiconductor business during this second quarter and surpassed how much Intel made in its semiconductor business during this second quarter which is $14.4 billion.

“Samsung Electronics surpassed Intel during second quarter and it is likely that Samsung Electronics has become the top semiconductor manufacturer for the first time ever.” said Financial Times (FT).

“Prices of DRAMs and SSDs (Solid State Driver) have risen as number of demands for DRAMs and SSDs has made a sudden increase due to generations of mobile devices.” said Nomura Securities Co., Ltd. “Markets for memory semiconductors, which are Samsung Electronics’ major products, made a bigger growth than markets for CPUs that are Intel’s major products.”

As number of demands for NAND flash memory semiconductors, which use DRAMs and SSDs, has made a sharp increase, Samsung Electronics finally surpassed Intel, which has been the top business in this market for however long, for the first time.

“Assuming that prices of memory semiconductors do not collapse, Samsung Electronics’ yearly performance will also be able to surpass Intel’s yearly performance.” said Nomura Securities Co., Ltd. Nomura Securities Co., Ltd. Is estimating that Samsung Electronics’ yearly sales and Intel’s yearly sales will be $63.6 billion and $60.5 billion respectively this year.

Many South Korean stock firms are also predicting that Samsung Electronics surpassed Intel during second quarter.

Intel, which had been the top semiconductor business based on sales since it started producing CPUs for PCs in 1993, had maintained its place for past 24 years. Although memory semiconductors such as SRAMs and DRAMs were its major products during its early days of company, it became the top business in markets for PC chips.

Besides PC chips, Intel is also producing variety of products such as motherboard chipset, flash memory, graphic chip, internal processor, and network interface controller.

A market research company called IC Insights is also predicting that Samsung Electronics surpassed Intel in second quarter sales from their corresponding semiconductor businesses last month and that it will become the top semiconductor business for the first time. “If Samsung Electronics becomes the top semiconductor business, this will be a monumental event not just for Samsung Electronics but also for all semiconductor businesses as well.”

Staff Reporter Bae, Okjin | [email protected]