In 2021, the sales revenue of Samsung Semiconductor Business in Q2 reached 127.726 billion yuan, surpassing Intel to become the world’s largest chip manufacturer
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It is reported that in the second quarter of 2021, Samsung Electronics Co. overtook Intel to become the world’s largest chip manufacturer. But just last week, Intel announced that it had won Qualcomm’s order, and Samsung is expected to face increasingly fierce competition. It is reported that Samsung’s semiconductor business achieved a sales revenue of 22.74 trillion won (about 127.726 billion yuan) in the second quarter, higher than Intel’s Q2 total sales of $19.6 billion (126.734 billion yuan).
For most of the past 30 years, Intel has always enjoyed the first position in global sales. Only in 2017 and 2018, Intel gave up the champion to Samsung, which can be attributed to the significant increase in memory chip sales at that time.
Samsung attributed the excellent performance of the chip business to the higher than expected price rise of DRAM and NAND chips and the release of backlog demand. At present, Samsung is the world’s largest memory chip manufacturer and the world’s largest smartphone manufacturer.
According to the data of dramexchange, a Market Research Institute, the contract price of PC DRAM (ddr48gb) rose 7.89% month on month to US $4.1 in July, the highest level since April 2019.
The fixed transaction price of NAND flash 128GB memory card and multi-layer unit storage products for USB in July was US $4.81, up 5.48% month on month, the highest since September 2018.
Intel entered the OEM market on a large scale.
Threats from Intel
Although Samsung occupies the first place in the industry, analysts believe that the Korean technology giant will face a tough battle because Intel announced its entry into the field of chip OEM.
Pat Gelsinger, chief executive of Intel, said last week that the company’s goal is to become the world’s top OEM enterprise by 2025.
The CEO also announced that he had won a OEM order and would start producing Qualcomm chips. Qualcomm is a major customer of TSMC and Samsung, and now it has been robbed by Intel. TSMC and Samsung have dominated the OEM market for many years.
In March this year, Intel said it would spend $20 billion (about 129.313 billion yuan) to build two chip factories in Chandler, Arizona, to enter the field of wafer foundry.
According to the data of Jibang consulting, a market research institution, TSMC is currently the largest OEM in the world, accounting for 55% of the global OEM market, followed by Samsung, with a market share of 17%.
Industry insiders said: “Samsung’s chip business is greatly affected by the price fluctuation of the memory market. The company needs to invest more in wafer foundry business to compete with TSMC and deal with the threat from Intel. “
Samsung’s determination
According to Samsung’s “vision 2030” plan, the company plans to invest 133 trillion won to become a global foundry leader. To this end, Samsung will spend 10 trillion won a year to develop chip foundry technology and buy necessary equipment.
On July 29, Samsung Electronics executives said at the quarterly earnings conference call that the company’s OEM sales are expected to increase by 20% this year.
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