The California based Chipmaker Intel has enjoyed its position as the world’s biggest chipmaker for more than two decades. This company beat estimated earnings of the second quarter. Samsung also revealed its quarterly earnings this week which showed the company achieving $15,8 billion in the form of revenue. The boom in the company’s chip unit is basically due to its memory chip business. These chips are a part of everything including phones, PCs, data centers as well as of Internet of Things.
Intel’s memory business is no doubt growing fast with revenue of $14.8 billion for the recent quarter and an operating income of $3.8 billion but it is small when compared to the revenue of Samsung which is $874 million up 58% year over year. But mainly because this is a very cyclical business and the prices are high during a period of limited supply. The prices are going to fall when in response the manufacturing capacity of brought online.
Right now, Intel is ramping up the process of its manufacturing the new memory chips whereas Samsung has also invested in memory chips. Samsung is expected to invest $18.6 billion for increasing its manufacturing capacity in South Korea. Memory Chip is becoming a big business for Samsung right now but with any potential downturn in future can affect the company hardest.
On the other hand, Intel has come a long way in this business and enjoys 90% market share with growing data business with $4.4 billion as the second quarter revenue. But the fast growing artificial intelligence is putting a lot of pressure from a rising AMD where Nvidia is dominating as the graphic chipmaker.