Samsung overtakes Intel to become the world's biggest chip maker


Samsung yesterday announced record profits for the second quarter of 2017, driven mainly by its OLED panel and memory chip businesses. But aside from the exorbitant operating profit it made, Samsung also broke another record by taking Intel's place as the world's leading chip maker.

Industry watchers attribute the achievement to Samsung's devotion to developing next-gen DRAM and NAND flash memory chips for a wide variety of devices, Korea Herald reports. By producing silicon for everything from servers to IoT connected devices, Samsung's semiconductor division alone was responsible for the whopping $7.2 billion in operating income on sales of $15.8 billion.

US-based Intel posted sales of $14.8 billion and operating profit of $3.8 billion for the April-June period, which marks a massive 190 on-year growth for the veteran CPU maker, although its 25.7 percent operating profit to sales ratio was easily overshadowed by Samsung's 45.7 percent ratio.

Intel has been the world's top silicon maker since 1992, but with the declining sales of personal computers and the rise of smartphones, Samsung's diverse portfolio has grown and its business – benefited from these developments.

"The boom of the cloud computing, virtual reality and self-driving automobile industries is also expected to lend support to Samsung's strong position going forward," reports the KoreaHerald, citing industry watchers.

source: KoreaHerald

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31 Comments

1. DRS1977

Posts: 679; Member since: May 27, 2015

Congratulations Samsung and well deserved!

2. trojan_horse

Posts: 5868; Member since: May 06, 2016

Yay. Go, Sammy, go!

3. 99999

Posts: 142; Member since: Jul 25, 2017

Yay, go Sammy and Android.

4. Tziggy14

Posts: 625; Member since: Sep 02, 2014

It was only a matter of time.

8. PhoneCritic

Posts: 1357; Member since: Oct 05, 2011

Yeah I figured it would be because mobile devices out sell PC 3:1 in the case of a family on a budget there was always that centralized desktop in the home that each member could utilize. As prices of laptops came down it was possible to give junior or sister a laptop for school or college but with phones they whole family was on a plan (dad, mom, brother sister etc..) and with yearly upgrades that meant people had second back up phones in the night draw in case their daily driver was out of commission.

5. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

And samsung electronics overtakes apple in Q2 profit for the first time in history ...

9. PhoneCritic

Posts: 1357; Member since: Oct 05, 2011

Now that's surprising - do you have a source (link)? not doubting that Samsung made bigger profits as a whole than Apple ( after all Samsung just doesn't make phones these guys are in everything) but has one division really made that much?

10. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Apple Q2 profit : 10,55 billion Samaung Q2 profit : 12,67 billion

11. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Apple has imacs ipods macbooks iphones ipads apple music appstore ... is this for u just one division lol ????

15. 47AlphaTango

Posts: 738; Member since: Sep 27, 2015

LOL! Did you know that samsung doesn't only sell smartphones? But they also sell TV, speakers, blue ray, refrigerators, laptops, memory, storage, oven and microwave, dishwashers, vacumm cleaners, and even air conditioners? Let's not forget the Gear VR and smartwatch Gear S3. Apple mostly only sells electronic devices such as iphones, macbook, mac desktop, ipad, ipod touch, So if I were you. I give a breakdown of its list of profits.

31. pendragon0202

Posts: 164; Member since: Feb 23, 2015

Consumer electronics division does not not make much money for Samsung. (Less than 3 billion per year) Former chairman even privately proposed chairman of Daewoo to exchange consumer division for Daewoo automobiles (currently GM Korea).

6. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Here is the king again, taking another throne for its own kingdom! This is legendary, as Samsung is the only one who outran Intel, who was the head of the chipset industry for 24 years! This is only the beginning

23. Michigan

Posts: 246; Member since: Nov 19, 2016

oh sammy taking the baton from them I mean Tizen is also there en we just getting started suck it.

7. PhoneCritic

Posts: 1357; Member since: Oct 05, 2011

Wow, I never thought I live to see the day. The Duopoly of Microsoft and Intel is it really over? Yeah from this piece of info I think it is. One thing is for sure Samsung being so diversified has shown that you need to dabble in everything in order stay competitive and relevant. Intel, Microsoft, Cisco, Oracle, Kmart, Sears etc.. All these companies had their time on top now it seems its Samsung and Apples time then it will be some other companies moment and the world of business goes on and on.... PA - not long ago published a piece that said that Samsung would hemorrhage billions because of the whole Note 7 fiasco- Looks like your prediction of Samsung's demise "has been greatly exaggerated"

13. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Nah the duopoly of Microsoft and Intel isn't over. Its just in 2nd place where it will remain for a while. But the fact is the world is changing and the fact is, other than businesses, most people don't need a desktop PC. I have desktop at home I built, because I never buy branded desktops ever and its rarely used for anything. I mean Mobile devices offer the needed power and punch where desktops are a dying breed, except in business. With the Surface, with other OEM's making hybrid portables, with tablets, with how powerful smartphones are getting, these will be the new breed of "personal computers" and the desktop is goign out the door to a point. Many businesses use laptops and Surfaces too for certain employees. I recall back in the old days, a laptop like I have now would have been close to $3000. SO I always built desktops because I could get more power for less than 1/2 the money. But the last desktop I built cost me $1200 and my present laptop which was the top option when I bought it was $1600. So the need for a desktop for me is gone. I just love the thrill of building my own PC. Every company like you stated gets a turn. Microsoft though should still be on top if Ballmer had simply made the right moves. He was to slow on Mobile and instead of laughing at Apple, should have been the first to have a better phone. Microsoft is proof to what happens when you rest on your laurels to long and Apple is gonna be the nest one falling from grace.

17. 47AlphaTango

Posts: 738; Member since: Sep 27, 2015

You talk like you know that apple will follow microsoft. Before you judge somebody's company. Have you ever seen their profits lately? Look at the status of android that samsung solely depends on their samsung galaxy phones. It's still all messy.

18. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

He always talks from his ass. Nothing new.

25. Michigan

Posts: 246; Member since: Nov 19, 2016

still waiting to see the 'next technology' from Apple en stop the profit rhetorics here.#17

24. Slytherin

Posts: 268; Member since: Mar 02, 2017

I liked that last comment Techie, I hope to see it come true very soon!

12. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung is in a world class positition all by itself. It is the most diverse tech company in the world. I'm only speaking of Samsung Electronics. Not Samsung as a whole. Samsung Electronics along makes over 200+ products that range from computers to phones to appliances and more. Ever since the S3, Samsung has poured tonnes of money into OLED and chip fabrication R&D and now all that hard work is gonna pay off. Samsung is now being what Bill gates says you have to be in order to be successful. You have to make people need you. You make them need you buy providing the best option, the best pricing structure and making sure what you offer is top notched. Samsung market valuation is gonna go through the roof. If Samsung can find a way to have all this tech, and cut operating and overhead costs down to the bare minimum, they could also be a Trillion dollar company. But when you make so much, its takes a lot of money to distribute and have factories to make all this stuff. When you go on Google maps and you type on Samsung in South Korea, they have buildings all over the country. They are 25% of their countries Gross Domestic Product. No company on the planet has this much influence. Even Apple doesn't have that. The iPhone has nearly 0% benefit to the US economy.

14. Rampage_Taco

Posts: 1095; Member since: Jan 17, 2017

I believe they actually have Samsung schools where everything is made by Samsung. Those are some lucky kids

16. 47AlphaTango

Posts: 738; Member since: Sep 27, 2015

OLED? I Thought it was Super Amoled?

19. Walkermoon

Posts: 38; Member since: Aug 22, 2015

Super Amoled is a kind of OLED only.

20. apple-rulz

Posts: 2198; Member since: Dec 27, 2016

"The iPhone has nearly 0% benefit to the US economy." Really? All the billions in tax revenue iPhone sales generate in the US, all the jobs needed in the US to support and develop iPhone(s), all the revenue generated by apps used on iPhone?!?!! You're being too liberal with the word "nearly". You are such an asinine troll, I feel sorry for your wife. She's probably ready to go back to the Philippines and deal with the grinding poverty there, rather than stay married to a fat old troll (a stupid one too) like you.

26. Michigan

Posts: 246; Member since: Nov 19, 2016

Soo 'all the jobs needed in the US' you being one of their employee right? stop trolling.#20

30. apple-rulz

Posts: 2198; Member since: Dec 27, 2016

Here are just a few Apple jobs available in the US. I know you don't qualify for any of them, but don't hate on those that do. Blame your parents, not society; https://jobs.apple.com/us/search#location&t=0&sb=req_open_dt&so=1&lo=0*USA&pN=1

28. PhoneCritic

Posts: 1357; Member since: Oct 05, 2011

Have to correct you there Apple has and off shore account that holds over 200 billion because they don't want to bring it back to the USA or they would be taxed the going Corporate rate, Which I believe is 35%, Apple doesn't even want to pay Ireland the 1% corporate tax rate and the EU is saying that they owe 13 billion in taxes. Trump is been trying to get Time cook to bring back business to the USA and he will give them a tax holiday of 10% But Apple is not budging. So no they don't pay there fair share of taxes here - Now I am not just picking on Apple MS, Google, Oracle etc.. do the same thing and they need to also pay their fair share of taxes.

29. apple-rulz

Posts: 2198; Member since: Dec 27, 2016

"Trump is been trying to get Time cook to". Time cook?!?!? Seriously?? You're going to pontificate on Apples role in the tax world, and you can't even type?!?!? You have zero credibility.

21. ph00ny

Posts: 2065; Member since: May 26, 2011

S3? They've been using OLED displays far longer than the S3 and have spent numerous resources on it

22. omnitech

Posts: 1131; Member since: Sep 28, 2016

Hm, I wonder if it's worth it fro them to branch out and try and take Intel's CORE i3, i5, and i7 business? Maybe they should merge or collaborate. They are part of the same Tizen alliance I believe. Why not form a chip alliance.

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