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Samsung Electronics Overtakes Intel to Become the World's Largest Chipmaker
Addtime:2017/7/17 22:39:07 Clidk:6640

According to the Financial Times, Samsung Electronics surpassed Intel in the second quarter of 2017 to become the world's largest chip manufacturer. Based on data from market analysis firm Nomura, Samsung Electronics' chip sales for the second quarter of this year are estimated at $15.1 billion, exceeding Intel's estimated sales of $14.4 billion.

The reasons behind Samsung's overtaking of Intel in the chip business can be broadly attributed to two factors: first, a broader and more far-reaching business layout; and second, an unwavering pursuit of cutting-edge innovative technologies. Behind these achievements lies years of substantial and tangible investment.

Since Intel released its Pentium central processing unit for personal computers in 1993, the US-based company has maintained a dominant position in the semiconductor market for 24 years, while Samsung was only ranked seventh at the time. With the proliferation of smartphones, demand for mobile processors has surpassed that for PC processors, and the memory capacity of mobile devices has gradually approached that of PCs, bringing more growth opportunities to chip manufacturers outside of Intel.

Unlike Intel's specialized focus on the PC processor segment, Samsung has a much broader semiconductor presence, including the development of mobile chips, research and expansion into IoT chips, and a strong commanding position in both NAND and RAM memory chips. Today, with the advent of the Internet of Things, connected cars, and artificial intelligence, market demand for high-end, sophisticated semiconductors is greater than ever. Global Foundries CEO Sanjay Jha stated that hyperscale data centers and AI applications will drive massive demand for video, voice, and data transmission as well as memory, ushering in a new "golden decade" for the semiconductor industry. This also implies that Samsung's semiconductor business growth will continue to accelerate.

Active innovation, a willingness to invest, and a commitment to mastering the most advanced technologies are another key factor behind Samsung Semiconductor's current position. In the 1970s, Samsung humbly learned from consumer electronics giant Sony and began seeking ways to break free from foreign technology dependence. Under the leadership of Samsung's founder, the company decided to start producing its own semiconductor components—a strategic move that has guided Samsung's long-term development ever since.

From being a follower when chips entered the 100nm era to now being the first to manufacture 10nm process chips, Samsung has reached the forefront of the industry. Not long ago, Samsung also unveiled its chip manufacturing process roadmap, planning to trial-produce 8nm process in the second half of this year, achieve mass production of 7nm process in 2018, develop 6nm and 5nm processes in 2019, and realize mass production of 4nm process chips by 2020, demonstrating a clear development roadmap.

To continue driving performance growth, Samsung plans to invest at least 21.4 trillion won (US$18.63 billion) in South Korea to expand the company's leading advantages in memory chips and next-generation smartphone displays. Samsung's Pyeongtaek plant, the world's largest semiconductor production line, has also officially commenced operations. Samsung also plans to build a new NAND chip production line at its Xi'an semiconductor plant in China, while the first production line at the Xi'an plant, established in 2014, has already achieved a monthly production capacity of 120,000 NAND memory wafers.

Rapid technological development is driving ever-increasing demands for core and cutting-edge semiconductor components across the entire market. With the fast-paced evolution of cloud computing, artificial intelligence, and the Internet of Things, the semiconductor market still holds vast prospects. For Samsung, as long as it firmly seizes future opportunities, this is the perfect stage for it to make a significant impact.

 
 

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