Intel’s narrowly holds global chip market lead in Q2

Intel’s narrowly holds global chip market lead in Q2

By eeNews Europe

This is the third consecutive quarter that Intel has lead the market. The company had revenue of $15.5 billion in the second quarter, reported by the IHS Markit Semiconductor Competitive Landscape Intelligence Service. However, that was a 2.1 percent fall from the $15.8 billion the company earned in the first quarter.

Samsung came second in the rankings with chip revenue of just under $13 billion, but the company did attain sequential growth, with revenue rising 6.6 percent from the first quarter.

“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,” said Ron Ellwanger, senior analyst, semiconductor manufacturing at IHS Markit. “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 benefitting from the higher adoption of solid-state drives (SSDs) in data centers and from the arrival of new smartphones that have expanded memory content.”

Samsung’s Q2 results contrasted with the overall results for the memory market in 2019. Global memory revenue declined in 2019 Q2 compared to last year, with DRAM dropping 33 percent and NAND flash falling 35 percent from Q2 2018.

However, the memory market showed change in the second quarter compared to Q1, with DRAM revenue rising 4 percent over the first quarter, and NAND declining by just 5 percent.

Intel performed well in the IoT market, driven by sales of products including industrial PCs that use the company’s MPUs. But, Intel’s data center performance was negatively impacted by slow demand from cloud service providers (CSPs). The CSPs are using up inventory of server and storage arrays, while putting off new purchases. Intel is also facing increasing competition in its core microprocessor business from Advanced Micro Devices and ARM-based chips.

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