Samsung Electronics overtakes Intel as the world’s largest chip manufacturer

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Tencent technology news according to foreign media reports, Samsung Electronics executives recently said that the company has historically emerged as the world’s largest semiconductor company, surpassing Intel in revenue in the second quarter of this year. However, Samsung Electronics “has no time” to be proud of its latest achievements.
On the contrary, Samsung felt a sense of crisis. Due to the absence of Lee Jae Yong, the owner of SamSung group and leader of Samsung, all core decisions of Samsung were shelved. Li zairi is currently in prison for his role in a bribery scandal involving impeached President Park Geun hye.
At the recent investor conference call announcing the second quarter results, a Samsung executive said that the company was ready to seek larger acquisitions in the next few years. Although Samsung did not specify any items on their “purchase list”, analysts said that Samsung would pay close attention to entities focusing on chip OEM and entities related to auto parts.
As of the first quarter of this year, Samsung’s cash and cash equivalent assets reached 209 trillion won. However, since Li LIF’s imprisonment, Samsung Electronics has not reached any deal except for the acquisition of Harman group.
“Once Samsung’s CEO is released from prison, decisions involving major investments may be accelerated,” said an industry executive At a meeting held at the White House, Samsung Electronics introduced its plan for large-scale investment in the United States, focusing on expanding the chip foundry business. Although Texas, New York and Arizona are considered viable candidates for Samsung’s chip factory, the source said that the final decision will be made after Lee’s release from prison, possibly on South Korea recovery day on August 15 – if he is pardoned by the president.
“Salaried executives cannot make major decisions,” a Samsung executive said on Monday. Only the owner family has the right and responsibility to make key decisions. ”
Some media quoted data reports that Samsung surpassed Intel from April to June and has risen to the position of the world’s largest semiconductor company. Samsung confirmed this. The South Korean technology giant reported sales of $19.7 billion in the latest quarter, while Intel reported sales of $19.6 billion.
In terms of operating profit, Samsung also beat Intel with $6.02 billion, while the operating profit of the American company was $5.55 billion.
Competition in the semiconductor industry is intensifying. After CEO pat Gelsinger took charge of the company, Intel recently announced a plan to invest $20 billion to build two chip plants in Arizona to serve customers in the United States and Europe. Considering the profitability of TSMC, Intel invested heavily in the chip foundry business to improve its profit margin in the dilemma. TSMC only produces chips for third parties. Intel said it expects the value of the chip foundry market to be as high as $100 billion in 2025.
Sources said that Intel is negotiating the acquisition of global foundries, the chip business split from AMD. Global foundries is the fourth largest chip foundry in the world, accounting for 7% of the total chip foundry business in terms of sales.
Samsung is also competing with its major chip foundry competitor TSMC, which will invest $128 billion in plant investment by 2024.
A source said that Li zairi F may be released on parole on the recovery day of South Korea on August 15. The Committee of the Ministry of justice of the Republic of Korea will hold a meeting on August 9 to review this decision.
As of the second quarter, the chip business currently accounts for the largest proportion of Samsung’s sales and operating profit, followed by the smartphone business. However, the industry view is that Samsung’s mobile business has reached the limit of growth.
“Samsung’s mobile business can only survive for five years at most,” said an industry executive( Tencent Technology (reviser / Lexue)