Last year we already started to see how the 25 years of leadership that Intel had maintained as the biggest manufacturer of chips was beginning to wobble. The end of Intel’s position in power has now been confirmed, giving place to another power as the biggest manufacturer of chips, or at least that’s what their profits are saying.
Samsung has succeeded Intel as the main producer of chips, a position which the North American occupied since 1992. The numbers offered by both companies with respect to the sale of chips has left it clear: Samsung has obtained a profit of 69 billion dollars, while Intel has obtained 63 billion. It doesn’t seem like a big difference, but it determines the position of each company in the market.
Intel has had a good year
Intel has not had a bad year as far as sales, since they have been able to increase them by around 6%. The processors manufactured by Intel are in 80% of the computers in the world, but it is evident that their great success in computers has not been sufficient this year.
The market for memory chips is booming and the North American company has decided to return to it. These chips have become a fundamental part of smartphones and little by little are increasing their range of use —some cars are starting to use them.
Samsung’s great transformation
The South Korean company has made big changes in terms of its production, stopping producing televisions in order to penetrate the market of the development of key components of smartphones and other devices. Among the chips it produces, Samsung has concentrated on memory chips, a market which doesn’t stop growing and which has caused them to gain first place.
It is very ironic that Samsung has been able to surpass Intel as a producer of chips because of memory chips, since it was Intel that created this business in 1960. The North American company left this business when the competition with Japanese companies became too strong in the 90’s. It has been in this same area that Intel has grown most this year, although it still has a long way to go in order to catch Samsung.
Samsung started into this market using the technology of Intel’s Japanese competitors. Now that they are established in the market, the company is following the footsteps of Intel and manufacturing more expensive components. They have also been able to become a producer of Qualcomm, whose processors are found in the majority of high-end phones.