Samsung has overtaken the Intel over silicon-based semiconductor by
high quarterly profit and sales recorded as $7.2 billion in operating income on
revenue of $15.8 billion during April-June period of 2017. While Intel reported
about is quarterly earnings of $14.4 billion in quarterly revenue.
Intel was the king of the silicon based semiconductor from
two decades. But on this Thursday
Samsung Electronics reported record-high quarterly profit and sales,
shows that
Samsung has unseated the Intel as the king of the microchips.
According to analysts, Intel was the leading maker of
semiconductors till April-June quarter. It is the dominant supplier of the
processors that serves as brains for the computers and laptops since 1992 when it overtook Japan’s NEC.
But now, Samsung Electronics is taking the rewards of dominating in the
memory chip market which is growing very fast than the market of computers
which depends on processing units by Intel.
Chung Chang Won, a senior analyst at Nomura Securities said:
“Greater use of Smartphones and tablet PCs instead of computers is driving the
rise of companies like Samsung.”
Samsung became the largest supplier of memory chips NANDs
and DRAMs, a type of memory chip used in servers, computers and handsets,
since 2002. As the demand for memory chips went high from the consumers, the competition
became much brutal.
According to annual basis business record, Samsung’s
semiconductor division would overtake Intel's Sales this year.
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Every manufacturer is trying to pack more and more memory
storage capacity into smaller device gadgets due to the increased use of mobile
applications, connected devices and cloud computing services and Samsung is
dominated in this area now.
Marcello Ahn, a Seoul fund manager at Quad Investment
Management said: “Data is the new crude oil.”
Samsung is leading in manufacturing the high quality
commodity of silicon chips which helps the world to store the date that fuels
the digital Market and consumers.
According to a report, Samsung’s annual sales is expected to
$62.6 billion while the full year revenue of Intel would be expected to $60
billion.
If we talk about the future, SK Hynix and Samsung are the
two major manufacturers of semiconductor and having the control over the three
quarters of the global DRAM sales. And they are raising their investment on
semiconductor capacity and development in anticipation of robust future demand.
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