Ask most people who the largest chip maker in the world is and they'll rightly respond "Intel." But 2017 looks likely to be the year Intel moves into second place to make way for Samsung.
That prediction comes from US semiconductor market research firm IC Insights, and it's all thanks to higher pricing of memory chips. Being classed as the world's largest chipmaker comes down to money, after all.
As reported by The Korea Herald, Bill McClean, president of the US research firm IC Insights, explained that "If memory market prices continue to hold or increase through the second quarter and the balance of this year, Samsung could charge into the top spot and displace Intel."
With that in mind, Intel is expected to post sales of $14.4 billion in the second quarter of 2017. Samsung's sales are expected to top $14.6 billion.
Intel first became the world's largest chipmaker back in 1993 and has held the title ever since. But as the mobile market has exploded, so did the need for the chips that make them work. Unlike on PC where Intel dominates, mobile is a different matter entirely, and Samsung is on hand to provide the DRAM and NAND chips they require.
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As to why memory prices have increased and may continue to do so, we have China to thank for that. More Chinese consumers are buying high-end devices, all of which require memory chips to function. Samsung wins on two fronts: it is selling more chips and the prices for them are higher.
Assuming the title does change hands, whether Samsung retains it beyond the second quarter depends on what happens to memory prices. If they fall, so does Samsung back down to second position.
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