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Samsung closes gap with Intel in Q2 chip revenue: report

Industry 09:44 August 13, 2019

By Kim Eun-jung

SEOUL, Aug. 13 (Yonhap) -- Samsung Electronics Co. closed the gap with leading chip supplier Intel Corp. in the second quarter of the year on the back of solid revenue growth, an industry report showed Tuesday.

U.S. chip maker Intel remained the world's largest semiconductor supplier for the third consecutive quarter with revenue of US$15.5 billion in the April-June period, but the second-quarter figure marked a 2.1 percent decline from three months earlier, according to market researcher IHS Markit.

South Korean tech giant Samsung's chip revenue gained 6.6 percent on-quarter to nearly $13 billion over the cited period to close the gap with Intel, which has strength in the non-memory chip business.

"Despite the fact that the memory chip market remains pressured by falling prices, weak demand and excess inventory, Samsung in the second quarter managed to find some growth opportunities for its memory products," Ron Ellwanger, senior analyst of semiconductor manufacturing at IHS Markit, said.

"Samsung has started to see some recovery in NAND and DRAM memory due to strong demand for its high-density products from the mobile and storage segments."

NAND sales specifically are benefiting from the higher adoption of solid-state drives (SSDs) in data centers and from the arrival of new smartphones that have expanded memory content, Ellwanger said.

Global memory revenue declined sharply in the April-June period compared with a year earlier, with DRAM falling 33 percent and NAND flash plunging 35 percent, IHS Markit said.

However, the memory market showed some recovery on a quarterly base, with DRAM revenue rising 4 percent and NAND declining by just 5 percent in the second quarter from a quarter ago, it noted.


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