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Samsung Steals Intel's Spot As World's Biggest Chipmaker

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Samsung Steals Intel's Spot As World's Biggest Chipmaker

Postby MrFredPFL » Sat Jul 29, 2017 10:18 pm

Story :

On Thursday afternoon, Intel satisfied Wall Street with second-quarter earnings that beat estimates. But that didn't stop Samsung from stealing the Santa Clara, California-based chipmaker's spot as the world's biggest chipmaker -- a position Intel has enjoyed for more than two decades.

Samsung reported its quarterly earnings earlier this week that showed its chip business hit $15.8 billion in revenue, with an operating income of $7.2 billion. The profitable boom in Samsung's chip unit was mostly due to its memory chip business. Memory chips are suffering from global supply constraints, which is driving up prices. These chips are going into everything from phones, PCs and data centers to Internet of Things devices.

Meanwhile, Intel reported revenue for the most recent quarter of $14.8 billion, with an operating income of $3.8 billion. Intel's memory business is indeed growing fastest, but it's almost microscopic when compared to Samsung's: $874 million, up 58% year-over-year.

What’s important to keep in mind, however, is that memory has always been a very cyclical business, said Bernstein Research analyst Stacy Rasgon. While prices are high now during a period of limited supply, prices will inevitably tumble as more manufacturing capacity is brought online in response. “Memory is on fire and the getting is good right now, but what happens next year?" Rasgon said.

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Re: Samsung Steals Intel's Spot As World's Biggest Chipmaker

Postby IneptVagrant » Tue Aug 01, 2017 8:39 am

Samsung and Intel don't compete in the chip market -- Samsung does mobile, Intel does desktop/server. Its really a meaningless comparison as success for one may have nothing to do with the failure of the other.
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