Intel has overtaken Samsung as the world’s largest chip maker, according to recent data from Counterpoint Research. The shakeup in rankings is attributed to Samsung’s substantial decline in chip division revenue, dropping from $70.2 billion in 2022 to $43.4 billion in 2023—a staggering 38% decrease. This plunge results from the downturn in the memory chip market and Samsung’s struggle to attract customers for its advanced manufacturing processes.
While Intel also experienced a revenue dip, it was not as substantial as Samsung’s, allowing it to surpass the South Korean giant in chip revenue. Intel’s revenue fell by 15%, from $59.8 billion in 2022 to $50.5 billion in 2023.
In a remarkable turn of events, NVIDIA emerges as one of the few semiconductor chip companies to witness revenue growth. The surge is attributed to the flourishing artificial intelligence sector and the heightened demand for powerful GPUs for cloud servers. NVIDIA is projected to experience an impressive 86% revenue growth in 2023, soaring from $16.3 billion in 2022 to $30.3 billion. This remarkable expansion propels NVIDIA from the tenth position in 2022 to an outstanding third place in 2023.
Samsung’s Downfall and Competitors’ Performances
Samsung’s dethronement from the top spot marks a notable setback for the tech giant, highlighting the challenges in the competitive chip market. Qualcomm secured the fourth position with 2023 revenues of $30.2 billion, witnessing a 17% decrease from $36.3 billion the previous year. Broadcom maintained its fifth place, boasting $30 billion in revenue, reflecting a 13% increase from 2022.
SK Hynix, Samsung’s formidable competitor in the memory chip sector, faced a revenue decline of 33%, reporting $23.6 billion. AMD experienced a slight revenue decrease of 4%, dropping from $23.6 billion in 2022 to $22.6 billion in 2023. Texas Instruments witnessed a 12% decline in revenue, falling from $20 billion in 2022 to $17.5 billion in 2023, securing the seventh spot in the global semiconductor chip market.
Samsung’s Path to Recovery in 2024
Despite the setback in 2023, Samsung anticipates a resurgence in 2024. The increase in demand for memory chips, coupled with rising chip prices compared to the previous year, is expected to contribute to Samsung’s revenue growth in the coming year.
The dynamics in the semiconductor chip industry underscore the ever-changing landscape, with companies like Intel and NVIDIA making significant strides while others face challenges in adapting to market shifts.