November 20, 2019 11:19
Samsung is expected to lose its place as the world's top chipmaker to U.S. chip giant Intel this year due to a severe slump in the memory chip market.
In a recent report, global market researcher IC Insights forecast Samsung's semiconductor sales would plummet to US$55.61 billion this year, down 29 percent on-year and well below the estimated $69.88 billion for Intel.
Samsung took the No. 1 spot in 2017 and 2018 thanks to a booming memory chip market, beating Intel, which had held it from 1993 to 2016.
But the memory chip market has declined this year.
The non-memory chip business, meanwhile, has remained strong, helping Intel go from strength to strength as demand continues to grow for system semiconductors for state-of-the-art technologies like 5G and artificial intelligence.
This year, sales of 15 top global chipmakers are expected to tumble 15 percent on-year, but Intel alone is likely to be spared a drop. Last year, it posted sales of $69.83 billion.
SK Hynix, which also focuses mainly on memory chips, will also see its place in the global market slide this year. Its sales will plummet 38 percent to $22.89 billion, losing its third place to Taiwan's TSMC, according to IC Insights.
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