Intel Eyes #1 Semi Supplier Ranking in 2019
March 11, 2019
Steep memory market plunge likely to push Samsung’s 2019
semiconductor sales down by 20%.
Insights is currently updating its 2019-2023 semiconductor market
forecasts that will be presented later this month in the March Update,
the first monthly Update to the 500-page, 2019 edition of The McClean
Report—A Complete Analysis and Forecast of the Integrated Circuit
Industry (released in January 2019).
For 2019, a steep 24% drop in the memory market is forecast to pull the
total semiconductor market down by 7%. With 83% of Samsung’s
semiconductor sales being memory devices last year, the memory market
downturn is expected to drag the company’s total semiconductor sales
down by 20% this year. Although Intel’s semiconductor sales are forecast
to be relatively flat in 2019, the company is poised to regain the
number 1 semiconductor supplier ranking this year (Figure 1), a position
it held from 1993 through 2016.
both the DRAM and NAND flash markets forecast to show big declines this
year, IC Insights expects greater than 20% sales declines for the other
top-10 ranked memory suppliers (SK Hynix, Micron, and Toshiba/Toshiba
Memory) in 2019 as well. Similar to Samsung, the steep sales declines
expected for SK Hynix, Micron, and Toshiba in 2019 are likely to lower
these companies’ revenue back to, or even below, what they were in 2017.
This year will likely prove once again that the infamous volatile IC
industry cycles are still very much alive and well in the memory market.
The March Update will also examine the latest capital spending budgets
of the major semiconductor companies for this year. With the memory
suppliers expected to encounter a very difficult year in 2019, large
capital spending cutbacks from these producers are likely to drag down
worldwide semiconductor industry capital spending by at least 14% this