Intel Set To Reclaim Semiconductor Supplier Crown In 2019: Report
Following an incredibly long tenure at the top of the semiconductor sales charts, Intel found itself playing second fiddle to Samsung in 2017, thanks to a booming memory business. According to a new report by IC Insights, however, the Korean chip giant is not going to be sitting on top for too long - and it's due more to its own losses than Intel's gains.
In 2016, Intel peaked hit $57.0B in sales, easily placing itself in first ahead of Samsung's $44.3B. Despite a healthy sales surge, Intel's $61.7B revenue number in 2017 wasn't enough to take out Samsung at $65.9B, although in 2018, both companies continued to enjoy prosperous revenue growth. Things look to be changing soon for Samsung, however.
This new report is forecasting that Intel will grow its sales ~$700M to $70.6B in 2019. Meanwhile, Samsung's $78.5B in 2018 is shaping-up to recede to $63.1B in 2019. That huge loss is thanks in part to a 24 percent decline in the memory market, which itself will drag the entire semiconductor market down 7%.
IC Insights is only reporting on specifics with Intel and Samsung in this report, but it has laid out some basic guidance for others in the list as well. The report suggests that due to the decline in DRAM and NAND markets, a 20 percent sales declines will likely hit other major players, including Micron, SK Hynix, and Toshiba.
In the semiconductor sales grand scheme, the aforementioned 7% drop in overall revenue in 2019 represents a move from $504.1B to $468.9B. That's still better than 2017's end-year results, and is hopefully not going to prove representative of future trends.