Samsung to The World’s Largest Chip Manufacturer

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Samsung will soon seize the Intel’s throne as “the world’s largest chip manufacturer”. Samsung’s computer chip products are projected to overtake Intel’s in the second quarter of 2017. Samsung chip sales reached a range of US$ 15.1 billion within last three months. Meanwhile Intel recorder chip sales worth US$ 14.4 billion in the same period. It’s surprising that the deviation touches nearly US$ 700 million.

Previously Samsung Electronics booked profit increase of nearly 50 percent in the first quarter of 2017. However, the company does not describe the performance of its business yet. Quoting CNBC on April, Samsung had consolidated operating profit in the first quarter of 2017 reached 8.76 billion US dollars. It’s incredibly surprising as they can increase their profit for about US$ 6.34 billion in one quarter.

Furthermore, Korea Times has reported that the annual sales value of Samsung’s chip is projected to be higher that Intel, which is showed as US$ 63.6 billion and US$60.5 billion. Nomura Securities(Japan) said that  Samsung’s chip sales performance were driven by an increasingly high demand for various DRAM memory and solid state drive (SSD) products. Both DRAM and SSD are widely used in today’s gadgets, from smartphones to traditional desktop computers. Samsung has been expanding their business to answer these trends and needs as it’s the largest memory chip manufacturer in the world.

Intel itself has previously held as the largest chip manufacturer since 1993, when the manufacturer released a series of popular Pentium processors. Samsung which initiated chip business in 1987, was  ranked 7th in the same year.

It’s also interesting to look at Qualcomm as the largest smartphone chipset manufacturer has asked Samsung to help them.  Quallcomm will develop snapdragon 845 along with Samsung, this chip will be equipped to the 2018 flagship and premium smartphone.  Galaxy S9 is believed to be the first smartphone which use snapdragon 845 next year. It’s urgently settled as next year’s smartphone performance will be determined by video or graphic-based features such as VR, AR,video call and recording, and so forth. Snapdragon 845 will replace the 835 next year.

In its latest presentation, as mentioned previously, financial performance of Samsung has been driven by its component businesses. The growing demand for memory chips and OLED display screens form other smartphone manufacturers, encourage those achievements. Previously, the semiconductor business, which also selling memory chips to Apple, dominated Samsung’s financial performance in the last quarter of 2016. This unit’s profit grow for 77 percent annually and contribute Samsung’s total earnings for about 47 percent