Up to 88% of Samsung Electronics’ revenue comes from storage chip sales. Andrew Norwood, vice president of research at Gartner, said, "Samsung Electronics’ leadership is actually based on a storage chip business that is as unstable as quicksand, and in 2019 due to this unstable business, The crown of its number one semiconductor supplier status will definitely be lost to Intel."
According to Gartner, global semiconductor revenues in 2018 totaled $474.6 billion, an increase of 12.5% from 2017. In 2018, global semiconductor revenue increased year-on-year, a decrease of 21.9% from the year-on-year growth in 2017.
"Despite the slowdown in growth, the memory chip is still the largest segment of the semiconductor market, with revenue accounting for 34.3%." Norwood said, "This is mainly driven by rising DRAM prices, because for most of 2008, The average selling price (ASP) of DRAM is rising. However, due to oversupply, the average selling price of DRAM will start to fall in the fourth quarter of 2018, and this trend will continue until the second half of 2019."
Gartner said that despite the delays in its 10nm manufacturing process in the second half of 2018 and the limited availability of low-end CPUs, Intel's 2018 semiconductor revenues have increased by 12.9% compared to 2017. Among the top 10 semiconductor suppliers in the world in 2018, Korean storage chip maker SK hynix grew the most, with a growth rate of 37.4%.
In addition, Gartner said that as the second largest category of Application Specific Standard Products (ASSP) in the semiconductor market, its revenue grew by only 5.1%. This is mainly because of intelligenceMobile phoneMarket growth has stagnated and the tablet market has continued to decline. In many cases, semiconductor revenues that rely heavily on these end markets to sell application processors, modems, and other components have declined.
Leading suppliers in this space, including Qualcomm and MediaTek, are actively expanding into adjacent markets with better growth prospects, including automotive and IoT applications. However, Gartner believes that the growth of the smartphone market may still be stagnant in 2019, similar to the PC market that has matured.