For the first time in some 24 years, Samsung has beat world’s top chipmaker Intel to emerge at the top in terms of sales and operating profits in the second quarter. Samsung’s chip business posted an operating profit of 8.03 trillion won ($7.1 billion) in the second quarter while Intel’s operating profit stood at $3.8 billion.
A year earlier, Samsung registered 2.64 trillion won profit and this is the first time for the company’s chip business to post an operating profit exceeding the 8 trillion-won mark. On the other hand, despite garnering a whopping 190 percent on-year growth, Intel failed to beat Samsung this time in the chip business.
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In terms of operating profit ratio to sales, Samsung notched 45.7 percent while Intel managed to score 25.7 percent. Samsung’s rise is being attributed to its quick response to changing market needs as well as its expertise in developing next-generation technologies for dynamic random-access memory chips and NAND flash memory.
Industry watchers further predict that Samsung will leave behind Intel in terms of annual performance as well based on the fact that the outlook of global chip industry looks bright during the second half. This will be propelled by the boom witnessed in self-driving automobile industries, virtual reality and cloud computing.
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Via: Korean Herald
