Samsung Electronics is on track to reclaim its position as the world’s leading semiconductor supplier in 2024, overtaking Intel, according to recent data from market research firm Gartner.
This marks a significant comeback for the South Korean technology giant, fueled by a recovery in memory chip sales and growth in artificial intelligence (AI)-related demand.
“Memory chip sales, which had declined for two consecutive years, rebounded significantly last year,” said Gartner. “Samsung is projected to have achieved a compound annual growth rate of 4.9% over the five years leading up to 2024.”
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Meanwhile, Intel, the former industry leader, continues to face growth headwinds that have weakened its dominance.
Once the undisputed leader in the semiconductor market, Intel has been grappling with numerous challenges that have significantly eroded its position. The company, which specializes in central processing units (CPUs) for PCs and servers, has faced stiff competition, market shifts, and internal missteps in recent years.
One of Intel’s most significant hurdles has been its struggle to keep pace with advancements in semiconductor process technology. While competitors like TSMC and Samsung have rapidly transitioned to cutting-edge nodes, such as 5nm and 3nm, Intel has faced delays in developing its own advanced manufacturing processes. These delays have allowed competitors to produce smaller, more efficient, and higher-performance chips, putting Intel at a disadvantage.
Intel’s heavy reliance on the PC and server markets has also exposed the company to vulnerabilities as these segments face slowing growth. The global PC market, a key driver of Intel’s revenue, has been in decline due to market saturation and reduced consumer spending. Similarly, demand for server processors has been impacted by rising competition and macroeconomic uncertainties, reducing data center investments.
Intel’s challenges have been compounded by the rise of competitors such as AMD and NVIDIA. AMD has gained market share with its Ryzen and EPYC processors, offering better performance-to-price ratios. Meanwhile, NVIDIA has established itself as a dominant player in the AI and GPU segments, capitalizing on the surging demand for high-performance computing and AI applications.
Samsung’s Rise and Recovery
In contrast to Intel’s struggles, Samsung Electronics has staged a remarkable recovery in 2024, driven by its leadership in memory chip production and strategic investments in AI-related technologies. After suffering two years of declining profitability in its DRAM and NAND flash segments, Samsung rebounded strongly in 2023, with semiconductor revenue estimated at $66.5 billion—a 62.5% increase from the previous year.
Samsung’s resurgence has been fueled by the global AI boom, which has driven demand for high-bandwidth memory (HBM) chips used in generative AI systems. The company’s diversified portfolio, including both memory and advanced logic chips, has positioned it to capture growth opportunities in emerging markets.
Samsung’s dominance in the memory chip market remains a key factor in its success. Gartner projects that global memory chip sales rebounded in 2024 after a two-year slump, driven by increasing demand for data centers, AI applications, and next-generation smartphones.
Samsung’s compound annual growth rate of 4.9% over the five years leading up to 2024 highlights the company’s resilience and ability to navigate market challenges.
Global Semiconductor Market Trends
The broader semiconductor market is projected to grow significantly, with global sales estimated at $626 billion in 2024, up 18.1% from $530 billion in 2023. However, the market has seen uneven growth, with high-performance chips like HBM experiencing a surge in demand due to AI adoption, while general-purpose chips have faced sluggish sales.
The combined revenue of the world’s top 25 semiconductor providers has increased by 21.1%, pushing their collective market share from 75.3% in 2023 to 77.2% in 2024.
Intel’s Path Forward
To regain its footing, Intel has announced a series of strategic initiatives, including plans to invest heavily in advanced manufacturing and diversify its business. The company has also expressed ambitions to become a leading player in the semiconductor foundry market, challenging industry giants like TSMC and Samsung.
However, these efforts will take time to yield results, and Intel faces significant hurdles in bridging the technological gap with its competitors. Analysts warn that without significant breakthroughs, Intel risks falling further behind in an industry increasingly driven by innovation in AI, advanced memory, and high-performance computing.