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Samsung Overtakes Intel as Global Chip Leader

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that the U.S. research firm Gartner just revealed data showing that, in 2021, Samsung Electronics’ semiconductor revenue increased by 31.6 percent to US$75.9 billion, surpassing Intel to become the world’s highest-revenue chipmaker. The second-ranked Intel’s semiconductor revenue was $73.1 billion last year, with an increase of only 0.5 percent. It was the slowest sales growth among the top 25 chip manufacturers. Intel’s competitor AMD, in the server processor segment, market share has soared from 14th to 10th. However, Gartner’s ranking does not include foundry companies such as TSMC. It is worth mentioning that, in order to consolidate its position as the world’s number one, Samsung intends to return to China to seize more market share. Recently, it has established a new team called the “China Market Innovation Group,” which directly reports to the co-CEO. In 2018, 60 percent of Samsung’s chip revenue came from the Chinese market. Each year in China, it has easily earned RMB 300 billion (around US$47.3 billion) a year. It is fair to say that Samsung becoming the chip king in that year definitely had help from the Chinese market. In 2021, the global semiconductor industry sales surged 25.1 percent to $583.5 billion. This is the first time the industry exceeded the $500 billion revenue mark. As chip demand continues to surge, chipmakers such as Intel and Micron have expressed the belief that the global semiconductor boom will continue into 2025.

Source: Sohu, January 20, 2022