NVIDIA Overtakes Intel as Global Semiconductor No.1... Samsung Electronics 2nd, Hynix 4th

NVIDIA surpassed Intel and Samsung Electronics last year to become the world's top semiconductor supplier by revenue. The demand for high-performance graphics processing units (GPUs) for artificial intelligence (AI) surged, doubling its revenue compared to the previous year.

Samsung Electronics, which had pushed Intel from first place to third place the year before last, maintained its second position. Its performance improved in the memory business, including DRAM and NAND flash, due to a recovery in the semiconductor market. SK Hynix rose from sixth place the year before last to fourth place last year, leveraging its competitiveness in high-bandwidth memory (HBM).

According to market research firm Gartner on the 11th, global semiconductor sales in 2024 reached $655.9 billion, a 21.0% increase from the previous year. This figure is about $30 billion higher than the preliminary estimate at the beginning of the year. The surge in sales led to changes in the rankings of major semiconductor companies.

Samsung Electronics, initially expected to reclaim first place, ultimately remained in second place behind NVIDIA in the final tally. Samsung's semiconductor revenue last year was $65.7 billion, up 60.8% from the previous year. The resolution of oversupply led to a rebound in memory prices, and the recovery in server and mobile demand also contributed to improved performance.

SK Hynix recorded $44.2 billion, a 91.5% increase from the previous year. Its growth rate was the second highest among the top 10 companies, following NVIDIA. The expansion of demand for high-bandwidth memory resulted in a synergistic benefit with AI computing GPUs, which translated into strong performance.

On the other hand, Intel fell to third place with $49.8 billion in revenue. Its sales growth rate was only 0.8%. Management instability, including the resignation of CEO Pat Gelsinger, and reduced factory investments have continued, and Intel appears relatively sidelined in the expanding AI demand.

The survey excluded Taiwan's TSMC, which focuses on contract manufacturing (foundry). According to separate disclosures, TSMC recorded $88.6 billion in revenue last year. Including this, TSMC is effectively the top semiconductor revenue company.

Gartner analyzed, "The changes in the rankings of top companies are the result of the combined effect of AI infrastructure demand and the recovery of the memory market."