Samsung Electronics has lost its long-held position as the world’s largest semiconductor chip company. Recent data from Counterpoint Research reveals a substantial 38% decline in the revenue of Samsung’s chip division, dropping from $70.2 billion in 2022 to $43.4 billion in 2023. This stark decline is attributed to the downturn in the memory chip market and Samsung’s challenges in attracting customers for its advanced manufacturing processes.
While Samsung faced a considerable setback, Intel managed to surpass the South Korean giant in the global ranking of semiconductor chip makers in 2023. Intel experienced a revenue decrease, but not as drastic, with figures falling 15% from $59.8 billion in 2022 to $50.5 billion in 2023, allowing it to overtake Samsung in chip revenue.
NVIDIA’s Remarkable Climb
One of the standout performers in the semiconductor industry is NVIDIA, which witnessed a notable increase in revenue. Fueled by the artificial intelligence boom and heightened demand for potent GPUs for cloud servers, NVIDIA’s revenue is projected to surge by an impressive 86%, soaring from $16.3 billion in 2022 to $30.3 billion in 2023. This remarkable growth catapulted the company from its 10th position in 2022 to an impressive 3rd place in 2023.
Global Ranking and Key Players
Other key players in the semiconductor chip market also experienced varied fortunes. Qualcomm secured the fourth position in the ranking, with revenues of $30.2 billion, marking a 17% decline from $36.3 billion in the previous year. Broadcom maintained its fifth-place position, boasting $30 billion in revenue, reflecting a 13% increase from 2022. SK Hynix, Samsung’s major competitor in the memory chip market, faced a 33% decline with revenues totaling $23.6 billion.
AMD, despite a slight 4% dip in revenue from $23.6 billion in 2022 to $22.6 billion in 2023, held its ground in the market. Texas Instruments, however, experienced a 12% revenue decrease from $20 billion in 2022 to $17.5 billion in 2023, securing the seventh spot in the global semiconductor chip market.
Samsung’s Prospects for Recovery
Looking ahead, Samsung anticipates a revenue rebound in 2024. The expected uptick is attributed to increased demand for memory chips and a rise in memory chip prices compared to the previous year, positioning the company for potential recovery in the semiconductor chip market.
Source: sammobile Intel Overtakes Samsung as World’s Biggest Semiconductor Chip Company
