Samsung Outperforms Intel In Processor Market
If you think that Intel is the big global chip Company, you are wrong with the latest Samsung results revealing that they outperformed their US rival last year.
Samsung Electronics delivered revenues of US$78.36 billion in its semiconductor chip business alone for 2021, up 29 percent from the previous year.
Intel only managed to deliver full-year revenues of $74.7 billion in revenue, according to their latest financials.
According to Samsung executives the record performance was due to solid demand for memory chips, combined with an increased capacity and higher prices from contract manufacturing operations.
“Compared to last year, results (for memory business) improved significantly driven by solid demand across overall applications, as well as increases in our advanced node portion and average selling price,” said Ben Suh, executive vice president of investor relations at Samsung Electronics.
The operating profit from Samsung’s semiconductor business rose over 55 percent in 2021. This indicated that nearly 60 percent of the company’s income came from the chip business as opposed to sales of consumer products such as TV’s appliances and smart phones.
Suh said a rising cost associated with advanced processes has affected its profitability.
The uptrend in the semiconductor business will continue for the time Samsung executives said.
Contributing to this is the enterprises ramp up IT investments.
Samsung claims that they aim to solidify its position in advanced technology and that they have moved to introduce mass production of the first-generation Gate-All-Around process this year to woo chip clients looking for high-end technology.
Semiconductors are becoming Samsung ‘s most lucrative source of income with their processors now being used in mobile devices, TVs, display panels, and home appliances.
By sales, semiconductors showed a 29 percent increase, compared with 10 percent in the mobile device business and 16 percent in the consumer electronics business.
Samsung’s semiconductor business under the Device Solutions division oversees memory chips, non-memory chips, and contract manufacturing operations.