Market analysis firm IC Insights forecasts Intel to be 2019’s number one semiconductor manufacturer. According to the organization, the Santa Clara, California-based corporation will sell $69.3 billion worth of components this year. As a result, the company has retaken its title as the best-selling global chipmaker after losing its crown to Samsung in 2018.
Why Intel is Number One
Notably, IC Insights estimates that Intel has experienced a zero percent year-to-year change in sales from 2018. While the firm succeeded in maintaining its revenue generation, many of its competitors experienced double-digit annual declines in revenue.
As an example, the firm predicts that Samsung will see a 29 percent year-to-year dip in its semiconductor segment. In 2018, the South Korean electronics manufacturer generated $75.8 billion in component revenue. This year, it has only sold approximately $55.2 billion in integrated circuits, sensors, optoelectronics, and discrete semiconductors.
Like many chipmakers, Samsung has struggled this year financially because of the ongoing U.S.-China trade war and a global component glut. Indeed, Samsung, which specializes in making DRAM and NAND memory for smartphones, saw a 77 percent decline in semiconductor sales in the last quarter.
Conversely, Intel only derives around six percent of its revenue from its memory chips. The firm’s main profit drivers are computer and data center processors.
In its 2019 sales forecast, IC Insights estimates that only two chipmakers experienced growth in 2019.
The organization predicts that Sony, which recorded an estimated $9.5 billion in semiconductor revenue, grew by 24 percent from 2018. Consequently, the Japanese conglomerate moved from being the fifteenth best-selling component manufacturer last year to eleventh place in 2019.
IC Insights attributes the PlayStation maker’s resurgence to brisk sales of its image sensors.
On the other end of the spectrum, South Korean chipmaker SK Hynix experienced the biggest year-to-year decline in sales. The analyst firm forecasts that the company’s annual revenue will fall to $22.8 billion, down 38 percent from 2018. The corporation, which is a DRAM supplier, sustained a significant revenue decrease due to the memory component surplus.
The third-ranked Taiwanese Semiconductor Manufacturing Corporation (TSMC) sold $34.5 billion in semiconductors in 2019, a year-to-year increase of one percent.
On the whole, IC Insights predicts that the world’s top 15 semiconductor makers incurred an annual sales reduction of 15 percent.