Intel has claimed the top spot, surpassing Samsung, according to the latest data from Counterpoint Research. The reshuffling of ranks comes as a consequence of challenging market conditions and the remarkable growth of certain players.
Samsung’s Decline and Intel’s Rise
Samsung Electronics, once hailed as the world’s largest semiconductor chip company, faced a substantial setback. The revenue of Samsung’s chip division plummeted from $70.2 billion in 2022 to $43.4 billion in 2023, marking a substantial 38% decline. The downturn in the memory chip market, coupled with Samsung’s struggle to attract customers for its advanced manufacturing processes, contributed to this significant drop.
On the other hand, Intel, while experiencing a revenue decline, managed to overtake Samsung. Intel’s revenue decreased by 15%, from $59.8 billion in 2022 to $50.5 billion in 2023. Despite the decline, the magnitude was less severe compared to Samsung, enabling Intel to secure the position of the world’s largest semiconductor chip maker.
NVIDIA’s Remarkable Ascent
In the midst of the industry’s challenges, NVIDIA emerged as a standout performer. The company experienced a remarkable 86% revenue growth, soaring from $16.3 billion in 2022 to an impressive $30.3 billion in 2023. This extraordinary growth propelled NVIDIA from the 10th position in 2022 to a remarkable third place in the global semiconductor chip market in 2023. The surge in artificial intelligence and the heightened demand for powerful GPUs for cloud servers played a pivotal role in NVIDIA’s ascendancy.
Industry Rankings and Market Dynamics
Qualcomm secured the fourth position in the rankings, with revenues of $30.2 billion in 2023, marking a 17% decrease from $36.3 billion the previous year. Broadcom maintained its fifth position, boasting $30 billion in revenue, reflecting a 13% increase from 2022. SK Hynix, Samsung’s primary competitor in the memory chip market, reported revenue of $23.6 billion, marking a significant 33% decline. AMD experienced a marginal revenue drop of 4%, moving from $23.6 billion in 2022 to $22.6 billion in 2023. Texas Instruments secured the seventh position with a 12% revenue decrease, from $20 billion in 2022 to $17.5 billion in 2023.
Outlook for Samsung and Industry Dynamics
While Samsung faces the current challenge, industry experts anticipate a rebound for the tech giant in 2024. Factors such as increased demand for memory chips and a rise in memory chip prices compared to the previous year are expected to contribute to Samsung’s revenue recovery.
The shifts in leadership underscore the dynamic nature of the semiconductor chip industry, where market conditions and technological advancements continually reshape the landscape.
Source: sammobile Intel Overtakes Samsung as World’s Biggest Semiconductor Chip Company