Samsung beats Intel as top semiconductor seller as global demand rises
For the first time since 2018, the world’s top-selling semiconductor supplier was not Intel, which lost the top spot to Samsung in 2021, according to a report released today by Gartner Research.
Global semiconductor revenue jumped 26.3% during the year to $595 billion, according to the report. Samsung’s market share, meanwhile, rose to 12.3%, buoyed by 28% year-on-year growth. The South Korean electronics giant made nearly $73.2 billion in total revenue in 2021, up from just over $57.1 billion the previous year. Intel, on the other hand, saw its revenue decline ever so slightly, from $72.7 billion in 2020 to $72.5 billion last year, which was still good for a 12.2% market share. global.
SK Hynix took third place in the list last year, with a 40.6% year-over-year revenue increase to a total of $36.3 billion. . Rounding out the rest of the top 10 were, in descending order: Micron, Qualcomm, Broadcom, MediaTek, Texas Instruments, Nvidia, and AMD, all of which saw revenue growth of between 19% and 68%.
Other factors, including US government sanctions, have severely affected the market shares of China-based companies, Huawei-backed HiSilicon seeing an 81% drop in revenue year-on-year between 2020 and 2021, and China’s semiconductor industry as a whole in decline. from 6.7% total market share to 6.5%.
According to Andrew Norwood, vice president of research at Gartner, these rapidly growing revenues are mainly due to the continued shortage of chips, coupled with a surge in demand from global 5G rollouts.
“A combination of strong demand and increases in logistics/commodity prices drove average semiconductor selling prices … contributing to significant revenue growth in 2021,” he said. in a press release.
While the strongest growth in 2021 was seen in the automotive market, where demand grew by almost 35%, wireless communications also grew by 24.6%, propelled by a more than increase in the number of 5G-enabled handsets produced globally. last year. Companies upgrading their Wi-Fi infrastructure to accommodate returning employees to the office in 2021 have also helped drive demand, according to Gartner.
Yet the continued prominence of home and hybrid work has also pushed semiconductor demand in its own way, the report notes. Memory chips, in particular, were in high demand, thanks to increased server deployments among cloud hyperscalers working to provide services to an ever-swollen pool of home-based workers. PCs and other terminals intended for use by these remote workers also helped solidify demand.
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