Although 2023 cannot be regarded as a great year for the global semiconductor industry, it did mark a victory for Intel Corporation, as it reclaimed the crown of the world’s largest chip company from Samsung. The semiconductor industry is divided into memory and non-memory companies, both equally important in providing power products for global computers and gadgets.
Data released by Gartner yesterday showed that in 2023, Intel’s revenue was $48.7 billion, significantly higher than Samsung’s $39.9 billion.
Gartner’s report covers the revenue of chip design companies, whose products are typically produced through contract manufacturing or their machines. Different from the processor and GPU chip industry, memory chips are produced by several companies besides Intel, and the report covers the revenue of all these companies. The report does not include TSMC, because this Taiwan company does not design its products for sale and does not compete directly with customers.
However, due to the need to maintain leading processor chip capabilities and produce various chips, the complexity led Intel to abandon the memory business in 2022 and start diversifying its operations. This decision, announced by Intel before the current CEO took office, seems to have come at the right time, as the blood and gore in the global memory revenue field have changed the global rankings.
According to Gartner’s data, Samsung’s annual revenue fell by 37.5% last year, now making it the world’s second-largest semiconductor company by revenue. In stark contrast, the research company believes that Intel’s revenue fell by half, i.e., 16%, allowing Intel to self-cushion and maintain a strong position.
After Intel and Samsung earned revenues of $48.6 billion and $39.9 billion respectively, Qualcomm became the third largest semiconductor company. Its revenue was $29 billion, about $5 billion higher than the most popular Nvidia data in 2023.
However, 2023 was also a special year for Nvidia. It marked the first time the company entered the top five semiconductor companies selected by Gartner. NVIDIA’s GPUs are among the world’s most advanced processors, and because it does not design or manufacture CPUs, it can focus on the entire ecosystem built around its GPUs, which has greatly benefited it. Nvidia’s previous ranking was twelfth.
In 2023, Nvidia’s order volume surged, and its gaming division continued to recover, attracting much attention. But for memory companies, the situation was not so optimistic. Gartner explained that last year’s memory revenue fell by 37%, consistent with Samsung’s performance, but larger than the declines of other memory companies like SK Hynix and Micron. Intel has sold most of its memory business to SK Hynix.
As for Intel, it must compete with TSMC in the processor market. Freed from producing memory chips, Intel can operate freely in the chip market, which is very different from the market in which Intel CEO Patrick Gelsinger and his colleagues grew up. Now, Taiwan’s TSMC can manufacture x86 chips on an industrial scale, and the role of GPUs in global computing demands is also increasing.
As the first quarter of the 21st century is about to end, GPUs have transformed from simple products for running rendering or video games to playing a significant role among enterprises and other users. NVIDIA’s valuation also reflects this growth, as it remains the world’s most valuable semiconductor company. Nvidia’s latest market value has reached an astonishing $1.38 trillion, with its stock price rising 127% over the past 12 months.
Related:
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- Revived Battle in Storage Chip Industry: Your Chance! in 2024
- 2024 Big News: 3nm Process to Fuel 20% of TSMC Sales!
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