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Samsung Challenges Intel In Semiconductor Market

Technology major Intel, which has received a big revenue boost in the first quarter of 2011, is now being challenged by Samsung in the global semi-conductor market. In 2010 Samsung boosted its share from 7.6 percent to 9.2 percent while Intel shares share fell from 14 percent to 13.3 percent.

According to research firm Gartner (opens in new tab), global chip sales surged to $300 billion in 2010, a year-on-year increase of about $70 billion. The competition between Intel and Samsung has been going on since the last decade when the sudden rise of Samsung in the global semiconductor market first caught people's attention.

Intel increased its sales to $40.4 billion in 2010, an increase of 25.5 percent over 2009. While Samsung registered an increase of 59.1 percent, a sharp jump from $17.5 billion to $27.8 billion during the same period. Over the last few years Intel’s market share has fluctuated between 11.9 percent and 14.8 percent while Samsung's share has grown steadily from only 3.9 percent in 2001.

Intel is most often thought of as a microprocessor manufacturer, and AMD is accurately seen as its primary rival in that market, but it also makes a large portion of its revenue from the semiconductor market, and Samsung has clearly established itself as a dangerous competitor in that market.