Samsung’s semiconductor business is reportedly on the brink of losing the lead in sales in Q3 2022. Market watchers say that the Korean tech giant might experience a 19% drop in quarterly sales during the July-September period, which would allow TSMC to climb up the ranks and occupy first place.
A recent report by market intelligence firm IC Insights concerning memory products, mobile processors, and foundry services suggests that Samsung’s Q3 revenues in the semiconductor sector should amount to around $18.29 billion, representing a 19% quarter-on-quarter drop from Q2 when the company topped $22.62 billion in revenue. (via The Korea Herald)
TSMC is projected to take the lead in the third quarter
Market watchers expect TSMC to take the lead over Samsung in Q3 2022. They estimate that TSMC will reach $20.2 billion in sales during the July-September period.
Samsung’s primary source of revenue in the semiconductor market lies in memory chips. Market watchers say that DRAM, SSD, and NAND flash sales have accounted for nearly 75% of the Korean tech giant’s semiconductor sales throughout the first half of 2022. And with DRAM prices dropping, Samsung will experience a fairly steep revenue decline.
Speaking of memory sales, the company recently warned that they might continue dropping throughout the year and into 2023. And according to IC Insights, the “memory market [is] currently in a free-fall.” Chip makers will likely be oversupplied for at least the next two quarters, and industry experts predict that DRAM prices will drop by 18% in Q3 2022.