Samsung has dethroned Intel from the imaginary throne of computer chip manufacturers. This has been expected since this spring, when IC Insights predicted this development. And since nothing major has happened to shuffle the cards, after years Samsung is once again the number one in the production of computer chips.
Who is currently the largest manufacturer of computer chips is being determined according to the development of sales. This was monitored by the mentioned company IC Insights, which some time ago predicted that Samsung in the second quarter of this year in sales ahead of Intel by about $0,6 billion. The last time Samsung led the market was in the third quarter of 2018.
Samsung managed compared to the first quarter of 2021 increase revenue from chip sales by as much as 19 percent beating IC Insights' forecast. Samsung took over the period under review $20,3 billion, IC Insights predicted that Samsung's sales would reach "only" 18,5 billion.
Intel managed to collect 19,3 billion dollars during the same period, so it was not enough for the first place this time. But he still did not do badly, for comparison AMD, which is a rival processor manufacturer for Intel, only managed to grab $3,85 billion.
Critical shortage of chips and higher prices
He helped Samsung and Intel to higher profits critical shortage of chips, due to which a number of car companies, including Ford, Volkswagen and Škoda Auto, had to significantly reduce their production. As the world's largest supplier of electronic components, Samsung should continue to benefit from high demand. It probably goes without saying that as demand increases, so does the average selling price. At the same time, it can also be assumed that the currently very strong market position will have a positive impact on Samsung shares.
From the chart above, it can be seen that both companies performed better than IC Insights had predicted. In the case of Samsung, the increase in the average selling price of NAND Flash and DRAM memory had an impact on the better results. It is in this product that Samsung's weak and strong side lies. Products of this type can bring high profits in good conditions, but these good periods tend to alternate with weaker ones. And as we can see in the graph, changes can happen quite quickly. For example, in 2018, Samsung's sales fell significantly, so even the more than three billion lead was not enough.
But now it doesn't look like another crisis that could affect memory at all. Even so, it must be remembered that the current times are unpredictable and the question remains how the world of IT will continue to be affected by the pandemic, which has probably not yet said the last word.
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