Samsung Electronics has lost its crown as the world’s largest chip maker. Counterpoint Research’s latest data reveals a staggering 38% drop in Samsung’s chip division revenue, plummeting from $70.2 billion in 2022 to $43.4 billion in 2023. This precipitous decline is attributed to the memory chip market downturn and Samsung’s struggle to attract customers for its cutting-edge manufacturing processes.
While Samsung faced a substantial setback, Intel managed to surpass it in the global semiconductor chip ranking for 2023. Despite experiencing a 15% dip in revenue—from $59.8 billion in 2022 to $50.5 billion in 2023—Intel’s more modest decline allowed it to leapfrog Samsung in chip revenue.
NVIDIA’s Meteoric Rise
In a stark contrast, NVIDIA emerged as one of the few semiconductor companies worldwide to witness a surge in revenue. Bolstered by the artificial intelligence boom and heightened demand for potent GPUs for cloud servers, NVIDIA’s projected revenue for 2023 reflects an astounding 86% growth—from $16.3 billion in 2022 to a staggering $30.3 billion. This exceptional expansion propelled the company from the 10th position in 2022 to an impressive third place in the 2023 ranking.
Industry Dynamics and Key Players
Qualcomm secured the fourth position with revenues of $30.2 billion, witnessing a 17% downturn from the previous year’s $36.3 billion. Broadcom, with $30 billion in revenue (a 13% increase from 2022), maintained its fifth-place standing. SK Hynix, Samsung’s primary competitor in the memory chip market, experienced a substantial 33% drop, recording revenue of $23.6 billion. AMD faced a marginal 4% decline, with revenue slipping from $23.6 billion in 2022 to $22.6 billion in 2023. Texas Instruments, with a 12% revenue decrease from $20 billion in 2022 to $17.5 billion in 2023, secured the seventh spot in the global semiconductor chip market.
Samsung’s Prospects and Recovery
While Samsung grapples with its recent fall, projections for 2024 indicate a potential recovery. The anticipated uptick is attributed to heightened demand for memory chips and an increase in memory chip prices compared to the previous year.
This shake-up in the semiconductor industry underscores the dynamic nature of the market, with companies grappling for dominance amid technological shifts and evolving consumer demands.
Source: SamMobile (Link)