For as long as the semiconductor market has existed, Intel (INTC) remained the biggest company in that particular line of business and dominated the market for decades. Over the past few years, it had faced intense competition from a range of companies and eventually lost its place as the highest selling company for semiconductors.
However, all that belongs in the past as the semiconductor giant has managed claw back its market share and has emerged as the leader of the market once again. The company had lost out its crown to Samsung but it seems market forces have ensured that the world’s biggest chip maker is back at the top.
Intel’s return to the top of the market was reported by IC Insights and according to the report, it appears that the turmoil in the semiconductor market is the primary reason behind the development. The report stated that after two full years of Samsung emerging as the world’s biggest chipmaker, Intel is now all set to regain its throne by the time 2019 ends.
When the whole market was in the middle of an upswing over the past few years, Samsung consolidated its position at the top through soaring sales in DRAM and NAND. However, the downturn in the market has eaten into the sales of those products and helped Intel regain its position at the top. In Q1 2019, Intel has sold 23% more than Samsung and it is a trend that is expected to continue for the rest of the year.
While it is true that the unseating of an industry leader after two years at the top can often appear unexpected, many experts actually predicted the change of fortune for Samsung. Industry experts had already predicted a downturn in the DRAM market and in addition to that, there had also been predictions about significant losses for companies dealing in DRAM.
Considering the fact that Samsung was so heavily dependent on DRAM sales, the company’s unseating was perhaps not entirely unexpected. Unless the market recovers significantly there is every chance that Intel might hold on to its position for some time.