Samsung Electronics is poised to reclaim its position as the world’s leading semiconductor supplier in 2024, surpassing Intel, according to a report from market research firm Gartner on January 26.
This marks a major comeback for Samsung after facing challenges in recent years. However, the rankings do not account for Taiwan’s TSMC, the world’s largest semiconductor contract manufacturer (foundry).
Rebound Fueled by AI and Memory Chip Demand
After struggling with declining profitability in DRAM and NAND flash products, Samsung Electronics appears to have made a strong recovery in sales over the past year.
- The company’s semiconductor revenue is projected to have reached $66.5 billion in 2024.
- This represents a 62.5% increase from the previous year.
- Gartner attributes the growth to a resurgence in memory chip sales, which had been in decline for two consecutive years.
Meanwhile, SK Hynix, the world’s second-largest memory chipmaker, is expected to climb to fourth place in the global semiconductor rankings.
The company benefited from its leadership in the high-bandwidth memory (HBM) sector, which has seen skyrocketing demand due to the rapid expansion of artificial intelligence.
- Global semiconductor sales in 2024 are estimated to have reached $626 billion, reflecting an 18.1% increase from $530 billion in 2023.
- The top 25 semiconductor providers experienced a 21.1% revenue growth.
- Their collective market share increased from 75.3% in 2023 to 77.2% in 2024.
Mixed Fortunes in the Semiconductor Industry
While high-performance chips like HBM have thrived due to the AI boom, demand for general-purpose chips has slowed, leading to diverging outcomes for semiconductor companies.
Despite the broader semiconductor market facing challenges, Samsung’s resurgence has positioned it at the top once again, just a year after losing its lead to Intel in 2023.
According to Gartner, Samsung’s semiconductor division has achieved a compound annual growth rate (CAGR) of 4.9% over the past five years, reflecting its resilience and adaptability in an evolving market.
As the demand for AI-driven computing continues to grow, the semiconductor landscape is set for further shifts in the coming years.
