Published By : 28 Jul 2017 | Published By : QYRESEARCH
The ‘more than 20 years’ reign of Intel on the silicon semiconductor industry ended on Thursday, July 28, 2017, when Samsung Electronics, the South Korea-based electronic manufacturer, beat the U.S. manufacturer to become the new king of computer chips. Samsung registered a record-high profit in sales in its earnings report for the second quarter of 2017. Though Intel's earnings beat the forecasts, the entire revenue of the dethroned king was much smaller than the sales revenue from the chip division of Samsung.
The South Korean company stated that its semiconductor business has registered a US$7.2 bn in operating income on a revenue of US$15.8 bn in the second quarter of 2017; whereas Intel reported a revenue of US$2.8 bn on sales of US$14.8 bn. Researchers anticipated the U.S. chipmaker to register the sales of US$14.4 bn in this quarter.
“With Samsung's stronghold on flash memory, it is not a surprising event that Samsung exceeded Intel’s revenue in semiconductor segment,” stated Patrick Moorhead, the principal analyst at Moor Insights & Strategy. Intel may catch up Samsung when its memory output will start working at its full production capacity in nearly six months, he added. Researchers at brokerages and market research firms expect the semiconductor division of Samsung to overtake the entire sales of Intel for 2017. Even though the de facto chief of Samsung is jailed, fighting corruption charges, the company has recovered from the last year’s fiasco over the blast-prone Galaxy Note 7 with flying colors.