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Intel Loses Chip-Making Top Spot to Samsung

Samsung is now the world's largest semiconductor company thanks to flash memory and our obsession with buying mobile gadgets.

July 28, 2017
Samsung SSD internals

Intel became the world's largest semiconductor company by revenue in 1992 when is surpassed NEC. It has held the top spot ever since, but 25 years later and as predicted Intel is now just like NEC, being replaced. The new world's largest semiconductor company is Samsung.

According to the Associated Press, for the April-June quarter, Samsung earned $7.2 billion on sales of $15.8 billion. Intel earned $2.8 billion on sales of $14.8 billion, pushing it into second place overall. However, Patrick Moorhead, principal analyst with Moor Insights & Strategy, said we will likely see the two companies swapping position a few times. For example, Intel could claim back the top spot in six months as it ramps up memory production to full capacity.

Samsung's rise to the top is thanks to mobile devices and memory. Consumers can't get enough of mobile gadgets, which are typically full of Samsung parts. We also all want more and more memory, so Samsung's flash memory business is looking very healthy. And it doesn't look like that demand is going to drop off anytime soon.

So while we all continue to buy lots of mobile gadgets, the PC market continues its five year slump. That certainly poses a problem for Intel going forward. Even so, the former world's largest semiconductor company is still on course to post $60 billion in annual sales for the year.

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About Matthew Humphries

Senior Editor

I started working at PCMag in November 2016, covering all areas of technology and video game news. Before that I spent nearly 15 years working at Geek.com as a writer and editor. I also spent the first six years after leaving university as a professional game designer working with Disney, Games Workshop, 20th Century Fox, and Vivendi.

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