Consumer electronics major Samsung may overtake Intel in semiconductor revenue in 2017, according to Gartner.
Semiconductor revenue is forecast to reach $401.4 billion (+16.8 percent) in 2017 – driven by a boom due to shortage of memory.
The memory market revenue is forecast to grow at 52 percent in 2017. Samsung, as the largest memory supplier, is set to gain the most from the boom in the global memory market. Gartner predicts that Samsung will be able to capture the No. 1 position in the semiconductor market from Intel for the first time.
The following chart — prepared by Gartner — shows the semiconductor revenue of Intel, Samsung, Qualcomm, SK hynix, among others.
Intel clocked $54.09 billion, Samsung $40.10 billion and Qualcomm $15.41 billion from semiconductor business last year.
Intel dethroned NEC for the No. 1 position in semiconductor rankings in 1992 and has held it ever since. Samsung captured the No. 2 position in 2002 and has held that spot since.
Gartner said this will be the first time semiconductor market revenue has surpassed $400 billion. The market reached the $300 billion milestone seven years ago, in 2010, and surpassed $200 billion in 2000.
“Memory vendors have been able to increase their price for DRAM and NAND, driving revenue and margins higher,” said Andrew Norwood, research vice president at Gartner.
Gartner said the memory bubble is expected to go bust in 2019 as memory vendors add new supply and Samsung could lose a lot of the gains it makes this year and next.
The expected double digit growth in semiconductor market in 2017 is significant because revenue rose just 2.6 percent to $343.5 billion in 2016 from 2015 revenue of $334.9 billion.
2016’s semiconductor revenue growth was supported by increasing production in many electronic equipment segments, improving NAND flash memory pricing and currency movements.
Intel had retained its No. 1 position as the top semiconductor manufacturer and grew its semiconductor revenue 4.6 percent in 2016. Samsung Electronics continued to maintain the No. 2 spot with 11.7 percent market share.
Baburajan K
editor@telecomlead.com
