Samsung reclaims top position in global chip market in 2021

SEOUL, April 18 (UPI) -- Samsung Electronics nudged past Intel last year to reclaim the top spot in the global semiconductor market for the first time in three years, according to global business tracker Gartner.

Samsung Electronics saw its 2021 revenue jump 28% to $73.2 billion from a year before, garnering a 12.3% market share, according to data released Friday.

In comparison, Intel's 2021 revenue decreased by 0.3% year on year to total $72.5 billion, for a market share of 12.2%.

SK hynix ranked No. 3 with $36.4 billion, followed by Micron Technology with $28.6 billion, Qualcomm with $27.1 billion, and Broadcom with $18.8 billion.

Gartner said that the rising demand for memory chips boosted the sales of South Korean DRAM powerhouses, including Samsung Electronics and SK hynix.

"South Korea had the largest increase in market share in 2021 as strong growth in the memory market propelled South Korea to garner 19.3% of the global semiconductor market," Gartner research vice president Andrew Norwood said in a statement.

U.S. sanctions against Huawei and its affiliate HiSilicon led to the decreased market share of China from 6.7% in 2020 to 6.5% last year, Gartner said.

In particular, HiSilicon's revenue plummeted more than 80%, from $8.2 billion to $1.5 billion, during that period.

"This was a direct result of U.S. sanctions against the company and its parent company Huawei," Norwood said.

Gartner said global semiconductor revenues amounted to $595 billion in 2021, up 26.3% from a year prior. The chip shortage put pressure on the original equipment manufacturers, but the strong demand for 5G smartphones boosted the overall market.