Samsung ends Intel's 24-year reign as the top chip maker.
As predicted, Samsung has overtaken Intel as the world's biggest chip maker in Q2 2017.
The South Korean company revealed in its Q2 earnings report that the semiconductor business generated $7.2 billion in operating income on revenue of $15.8 billion. During the same period, Intel reported $14.76 billion in chip sales. The rise in usage of mobile devices helped Samsung end Intel's 24-year reign as the top chip maker.
“Greater use of smartphones and tablet PCs instead of computers is driving the rise of companies like Samsung,” Nomura Securities senior analyst Chung Chang Won told the news service.
Looking ahead, industry analysts believe Samsung will overtake Intel's sales on an annual basis this year. Nonetheless, Intel's financial state is looking great with sales of server chips increasing by 9%. The server business has been the main revenue driver for Intel since 2011. Its net income rose to $2.8 billion, up from $1.3 billion in the same period last year.