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Even jostled, Intel remains the world number 1 in semiconductors

The American giant is by far the largest producer of chips in the world. But he will have to modify part of his model to turn this incredible production into profits.

For several decades, Intel has been the largest producer of semiconductors in the world and this is confirmed again in this year 2020 when the giant has sold almost $ 73.89 billion worth of chips. Its dolphin Samsung, ephemeral world number 1 in 2018, sold “only” 60.48 billion dollars.

Behind these figures, however, it has somewhat darker indicators: the various problems of reducing the fineness of engraving force Intel to push back its plans for the 7 nm (in addition to giving it bad publicity), AMD begins to jostle it. in its three flagship markets (towers, laptops and data centers), ARM is gaining weight (supercomputer, takeover by Nvidia, switchover of Apple’s MacBooks), etc.

And especially if the turnover is on the rise, the same is not true of the profit, the main reason being that its industrial tool – the “fabs” – costs it dearly. The companies which are experiencing the strongest growth in the semiconductor field are thus the “fabless”, those which develop chips, but have them manufactured by third parties as is the case with Nvidia, Apple, MediaTek, Qualcomm, etc.

Even jostled by competition, Intel remains a giant, but it seems inevitable that it will have to review part of its model to continue to innovate … and increase its profits.

Sources : IC Insight via EPS News

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