Intel Regains Dominance: Back on Top in the Tech World

The semiconductor industry faced a challenging year in 2023 as revenue fell by 11.1% compared to the previous year, reaching $533 billion, according to a report by Gartner. The decline was driven by a combination of factors, including weaker demand and excess channel inventory in key segments.

Alan Priestley, Vice President at Gartner, highlighted that only 9 out of the top 25 semiconductor vendors experienced revenue growth in 2023, while 10 saw double-digit declines. This indicates the overall struggle faced by the industry during the year.

The combined semiconductor revenue of the top 25 vendors also declined by 14.1% in 2023, accounting for 74.4% of the market, down from 77.2% in the previous year. This shift in market share reflects the challenges faced by many companies in the industry.

However, amidst the decline, Intel managed to regain the No. 1 spot in 2023. This was primarily due to the underperformance of memory vendors during the year. After two years in the No. 2 position, Intel reclaimed its position at the top. The company's revenue for 2023 totaled $48.7 billion, surpassing Samsung's revenue of $39.9 billion.

Another notable development in the semiconductor market was Nvidia's entry into the top five for the first time ever. The company's semiconductor revenue grew by an impressive 56.4% in 2023, reaching a total of $24 billion. This growth solidified Nvidia's position as a major player in the industry.

ST, a semiconductor vendor, also made significant progress in 2023. The company moved up three spots to secure the No. 8 position, the same position it held in 2019. ST's revenue increased by 7.7% during the year, largely driven by its strong presence in the automotive segment.

Top 10 Semiconductor Vendors in 2023:

Source: Gartner (January 2024)

While the overall semiconductor market faced a decline in revenue, the memory segment experienced the biggest decline of all. Memory product revenue declined by 37% in 2023. Joe Unsworth, VP Analyst at Gartner, attributed this decline to weaker than expected demand and excess channel inventory in the smartphone, PC, and server segments.

Specifically, DRAM revenue declined by 38.5% in 2023, totaling $48.4 billion. Additionally, NAND flash revenue decreased by 37.5% to $36.2 billion. These figures highlight the challenges faced by memory vendors during the year.

On the other hand, non-memory revenue fared relatively better, declining by 3% in 2023. However, this segment also faced weaker demand and excess channel inventory, which negatively impacted its performance throughout the year.