In line with previous years, IC Insights has released its 2017 global semiconductor vendor revenue rankings. The report highlights a significant shift in the industry, with Samsung surpassing Intel’s long-standing dominance to claim the top spot. Meanwhile, MediaTek is expected to fall out of the top ten due to increased competition in memory and artificial intelligence (AI) sectors. Notably, this ranking does not include professional foundries, so even though TSMC saw strong revenue growth this year, it is not featured in the list.
According to the IC Insights survey, Samsung is projected to generate $65.6 billion in revenue this year, capturing a 15% market share and overtaking Intel as the world's largest semiconductor company. This marks the first time since 1993 that Intel has been displaced from the top position, ending its decades-long reign in the semiconductor industry.
Although Intel’s revenue in the first quarter was still higher than Samsung’s, it dropped to second place in the second quarter. Full-year revenue is estimated at $60 billion, representing a 7% increase from last year’s $57 billion, but a 1.7% decline in market share. While Intel continues to grow, its loss of the top spot is attributed to Samsung’s gains driven by rising memory prices, which have boosted both revenue and market share.
The memory market experienced a shortage, leading to rising prices throughout the year. In addition to Samsung, SK Hynix and Micron also benefited significantly, with their revenues increasing substantially. SK Hynix is expected to reach $26.2 billion this year, climbing to third place from fifth in 2016, while Micron will move into fourth place with $24 billion in revenue.
Broadcom, a leading chipmaker in the networking sector, is projected to earn $17.6 billion this year, slightly ahead of Qualcomm’s $17.1 billion, placing them fifth and sixth globally. Texas Instruments, Toshiba, Nvidia, and NXP follow closely behind.
Looking at China’s chip design industry, the first quarter of 2017 saw an impressive 23.8% growth, with sales reaching 35.16 billion yuan. China’s self-designed chips now hold an 8% share of the global market and a 13% share of the domestic market.
According to the China Semiconductor Industry Association, the top Chinese IC design companies in 2016 included two major players—Ziguang Group (after merging with Spreadtrum and RDA)—with total revenues exceeding 10 billion yuan. Other notable names like Xiamen-based companies also showed strong performance.
In addition to the top ten, there are several promising Chinese IC design firms. Memory chips remain a critical area, with over 75% of integrated circuits imported annually being memory chips and CPUs. The importance of memory chips in China’s tech landscape is evident.
Two Chinese companies, Mega Innovation and Yangtze River Storage, are actively working to break into the memory chip market. Globally, three types of memory chips dominate: DRAM, NAND Flash, and NOR Flash. While DRAM and NAND Flash lead in terms of revenue, NOR Flash remains smaller, valued at around $3 billion.
Artificial intelligence is shaping the future of the tech industry, and dedicated AI chips are becoming increasingly important. Major global and Chinese tech companies, including Baidu, Alibaba, Tencent, Huawei, Google, Facebook, Amazon, and Microsoft, are all investing heavily in AI development.
In August 2017, Cambrian Technology, founded by brothers Chen Yunyi and Chen Tianshi from the Institute of Computing Technology, Chinese Academy of Sciences, completed a $100 million Series A funding round. This brought its valuation to $1 billion, making it China’s first IC industry unicorn and a milestone for the sector.
Interestingly, the average age of Cambrian’s team is just 25, with many key members starting their careers in related fields while still in school. The founders, who are brothers, are known for their academic excellence.
Another notable player is Godson, led by Dr. Hu Weiwu, who has focused on independent research and development. He trained several key figures, including the founder of Cambrian. While Godson’s commercial prospects are limited, its chips are used in specialized areas such as BeiDou satellites, servers, industrial control, and embedded systems. Its success in these niche markets is commendable.
As an engineer, how do you view the current state of China’s chip industry?
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