Quote from Ndubuisi Ekekwe on January 31, 2018, 3:25 PM

For the first time since 1992, another company would hold the title as the world’s largest seller of chipsets. Yes, Intel has lost the crown to Samsung partly because of the former’s big mobile miss.

Intel Corp. posted record revenue in 2017, but it wasn’t enough. Samsung Electronics Co. just knocked Intel off its perch as the world’s biggest chipmaker by revenue, a spot the U.S. company has held since 1992. On Tuesday, Samsung reported 2017 chip sales of $69 billion, blowing past Intel’s $63 billion from last year.

There is no way anyone can match Samsung because it has an enviable vertically-integrated business in the broad semiconductor sector. It is a typical oasis strategy: the chipsets are first made for Galaxy product lines before Samsung would even consider if customers would need them.

By having that assured demand via the mobile division, Samsung semiconductor unit has eliminated huge investment risks. That gives it the leverage to invest at scale with confidence that demand is there. Plus, it can move fast without any need to consult external partners because the key partner is in-house.