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Samsung to Become No. 1 Semiconductor Company in 2021

Samsung Electronics’ semiconductor business is expected to maintain its growth momentum in 2022.

Samsung Electronics has been expected to surpass Intel to become the world’s No. 1 semiconductor company in terms of sales in 2021.

Samsung SemiconductorThe Korean semiconductor giant surpassed Intel for two years from 2017 thanks to a semiconductor supercycle.

However, as demand for memories shrank, it gave Intel the No. 1 spot from 2019 to 2020.

Korean securities firms predict that Samsung Electronics will rack up 95,130 billion won in semiconductor sales in 2021.

This is an increase of 30.6 percent from 72,858 billion won in 2020 and 10.2 percent higher than 86,291 billion won in 2018, the highest sales ever.

Securities firms predict that Samsung Electronics’ semiconductor sales will reach 26.98 billion won in the fourth quarter of 2021, surpassing the previous record high of 26,406.9 billion won posted in the third quarter of this year.

Intel is likely to be relegated to second place in 2021. According to market research firm IC Insights, Intel’s sales are expected to stand at US$7.55 billion in 2021. This is a 1 percent drop from the previous year. IC Insights predicted that sales of its flagship microprocessor units (MPUs) will record reverse growth as they stayed put.

Samsung Electronics’ semiconductor business is expected to maintain its growth momentum in 2022.

Securities firms forecast that their semiconductor sales will hit 112,109 billion won next year. This is an 18 percent jump from sales in 2021. It means that Samsung Electronics will be the first semiconductor company in the world to surpass 100 trillion won in annual sales.

Samsung Electronics’ semiconductor sales are lopsided toward memory products. Non-memory system semiconductors account for only 21.2 percent of its semiconductor sales in 2021.

Compared to 2020, the proportion fell by 5.3 percentage points. Sales of system semiconductors grew only 4.3 percent, while those of memory semiconductors grew 38.7 percent in a year.

Samsung Electronics disclosed the System Semiconductor Vision 2030 to address its heavy dependence on memory products. The chipmaker aims to ramp up sales of its system semiconductors and grow its semiconductor foundry business. Its system semiconductor sales are expected to surpass 20 trillion won for the first time in 2021 and top 25 trillion won next year.

Meanwhile, SK Hynix is expected to log sales of 42.9 trillion won this year, the highest-ever performance. This is a year-on-year increase of 34.4 percent. Industry experts expect SK Hynix to post annual sales of 50 trillion won in 2022.

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Aishwarya Saxena

A book geek, with creative mind, an electronics degree, and zealous for writing.Creativity is the one thing in her opinion which drove her to enter into editing field. Allured towards south Indian cuisine and culture, love to discover new cultures and their customs. Relishes in discovering new music genres.

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