The semiconductor division is a literal cash cow for Samsung. The company posted record profits in Q2 2021 largely due to the stellar performance of this division. The increased demand for its semiconductor products also enabled Samsung to once again take Intel's crown to become the world's top chipmaker.
Samsung first passed Intel to take the top position four years ago in 2017. However, Intel was able to claw back its lead in 2019. However, the intense demand seen following the pandemic has once again pushed Samsung to the top spot.
Memory chip demand pushes Samsung to the top once more
It was a pretty big achievement when Samsung became the world's largest chipmaker by revenue in 2017. It had ended Intel's 24-year streak in the top position. Samsung kept up the momentum in 2018 as well by outselling Intel yet again.
However, due to the oversupply in the memory market towards the end of 2018 and the beginning of 2019, the semiconductor division's revenues took a hit. Since Intel isn't in the memory market, it remained unaffected. This allowed Intel to take back the top spot by the end of 2019.
Fast forward to 2021 and Samsung is back on top. It has become the world's top chipmaker by revenue. The semiconductor division brought in revenues of $19.7 billion for Q2 2021 compared to Intel's $19.6 billion. Memory chips have once again pushed Samsung to the top as a supply shortage has once again raised prices.
The steady increase in memory chip demand is likely to continue so Samsung is going to occupy the top spot for some time. However, with Intel entering the foundry business and winning over Samsung clients like Qualcomm, it may not be long before it starts to claw its way back to the top yet again.
