According to a research report released by market research firm Gartner on Thursday, South Korean technology company Samsung surpassed Intel, the US rival, to become the world's largest chip maker in terms of sales.
Samsung Electronics won the largest market share, grabbed the throne from the hands of Intel. This is the first time Intel has been surpassed since 1992. "says Andrew Norwood, an analyst at Gartner.
In 2017, thanks to the growth of smartphones and other connected devices, the size of the global chip market increased by 22% to an increase of 419.7 billion U.S. dollars.
The report shows that Samsung's sales increased by 52.6% to 612 billion. This gives it a 14.6% market share.
Intel's sales increased only 6.7% to 57.7 billion U.S. dollars, accounting for 13.8% of the market.
Gartner said the growth in demand for memory chips is the main driver of the chip market.
"In 2017, memory chips accounted for more than two-thirds of all chip revenue growth, becoming the largest chip type. "Norwood said.
The report said that the main driver of the memory chip revenue growth is the price increase caused by supply shortages.
For the first time, the price of NAND flash memory increased by 17% year-on-year, while that of DRAM increased by 44% year-on-year.
"Equipment companies can not afford price increases, so they are passed on to consumers. This makes everything from PC to smartphone in 2017 even more expensive. & rdquo;
Gartner said that if Broadcom of Singapore successfully acquired its U.S. rival Qualcomm, the global rankings will see a major reshuffle this year.
Gartner expects Samsung to drop third place in revenue if Broadcom acquires Qualcomm for approval.
"2017 is a relatively calm year for mergers and acquisitions. Qualcomm acquired NXP Semiconductors is a larger acquisition. People originally thought the case would be completed in 2017, and as a result, it did not materialize. Qualcomm plans to complete the transaction in 2018. However, the acquisition of Qualcomm by Broadcom has made Qualcomm's acquisition of NXP Semiconductors more complicated. "Gartner said.
"If Broadcom can complete the acquisition, and Samsung's memory chip revenue continues to decline as predicted, then in 2019 Samsung may be able to fall to third place. "Norwood said.