Samsung overtakes Intel as leading semiconductor provider

Electronics firm Samsung has overtaken chip maker Intel in revenue to become the leading semiconductor maker, according to research from consultancy IHS Markit.

The development that could have implications for artificial intelligence and the Internet of Things. However, excluding the sale of components to third parties, Intel still retains the top position with $14.6bn of revenue compared to Samsung’s $14.4bn.

Korean firm Samsung edged above Intel after its revenue from memory integrated circuits, which make up 80% of its revenue, grew by 16% in the third quarter of 2017, compared to just 2% growth in the same sector for Intel.

“Our Q4 2017 forecasts take both companies’ semiconductor revenues above the $60bn mark for 2017,” said Vlad Galabov, a senior analyst at IHS Markit. “The long-term battle for revenue supremacy within the semiconductor industry continues as the memory market reaches an equilibrium in supply and demand, and as new revenue opportunities in artificial intelligence and the IoT, including connected devices and self-driving cars continue to emerge."

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