Among the ten chip companies with the highest market capitalization, eight are exclusively owned by the United States

Latest update time：2024-01-03

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According to the latest statistics from Companies Market Cap, the ten largest chip companies in the world by market capitalization are as follows.

As shown in the figure, GPU manufacturer Nvidia ranks among the top chip companies with a market value of US$1.1 trillion. Followed closely by Taiwan Semiconductor Manufacturing Co., Ltd., and in third place is Samsung from South Korea. As can be seen from the list, starting from fourth place to tenth place, they are all American companies. In the entire list, except for TSMC in Taiwan and Samsung in South Korea, eight of the top 10 semiconductor companies in the world are American companies, which shows the importance of the United States in the chip industry.

This year, the chip industry will set a record

Industry organizations predict that the global semiconductor market is expected to grow by 13.1% to a record US$588.36 billion in 2024, following a slump in 2023, due to growing demand for artificial intelligence chips.

The World Semiconductor Trade Statistics Organization, a group of major chipmakers, raised its growth forecast for next year from an 11.8% forecast in June. If realized, the market size by revenue will exceed the previous record of $574.08 billion by 2022. By 2023, the market is expected to decline 9.4% to $520.13 billion due to weak demand for memory chips.

The optimistic outlook comes as the industry is starting to see signs of a recovery in demand driven by the widespread use of generative AI, with the launch of ChatGPT, an AI chatbot developed by US-based OpenAI, and improving PC and smartphone sales. Signs of demand recovery.

U.S. chip giant Intel Corp said in October it may report its first revenue growth in two years between October and December. Rivals TSMC and Samsung Electronics also expect earnings to improve in the period.

By product, memory chips will lead the overall market growth in 2024, with sales expected to increase by 44.8% year-on-year.

The logic chip market is expected to grow by 9.6%, while the image sensor chip market is expected to grow by 1.7%.

By region, the Americas are expected to grow the fastest in 2024, with an increase of 22.3%. Many companies have smartphone and PC production bases in the Asia-Pacific market, which is expected to grow by 12.0%.

The growth of the Japanese market is expected to be 4.4%, which is not a large increase because the country's product sales are relatively small and therefore benefit less from the sharp recovery in memory chip demand.

Gartner predicts that global semiconductor revenue will grow by 17% in 2024

According to Gartner's latest forecast, global semiconductor revenue is expected to grow by 16.8% in 2024, reaching $624 billion. In 2023, the market is expected to decline by 10.9% to reach $534 billion.

"We have reached the end of 2023, and strong demand for chips that support artificial intelligence (AI) workloads such as graphics processing units (GPUs) will not be enough to save the semiconductor industry from a double-digit decline in 2023," Gartner Vice President Analyst Alan Priestley said. "Reduced demand from smartphone and PC customers, combined with softer data center/hyperscale spending, is impacting revenue declines this year."

However, 2024 is expected to be a rebound year, with revenue rising across all chip types driven by double-digit growth in the memory market (see Figure 1).

The global memory market is expected to decline by 38.8% in 2023 and rebound by 66.3% in 2024.

Lower pricing due to weak demand and massive oversupply will cause NAND flash revenue to decline by 38.8%, to $35.4 billion in 2023. In the next 3-6 months, NAND industry pricing will bottom out and suppliers' conditions will improve. Gartner analysts predict a strong recovery in 2024, with revenue growing to $53 billion, a year-on-year increase of 49.6%.

Due to severe oversupply and insufficient demand, DRAM manufacturers have lowered market prices to reduce inventory. Oversupply in the DRAM market will continue through the fourth quarter of 2023, which will trigger a price rebound. However, the full impact of rising prices will not be felt until 2024, when DRAM revenue is expected to grow 88% to $87.4 billion.

The development of generative artificial intelligence (GenAI) and large language models is driving the need to deploy high-performance GPU-based servers and accelerator cards in data centers. This requires the deployment of workload accelerators in data center servers to support training and inference of AI workloads. Gartner analysts estimate that by 2027, integrating artificial intelligence technology into data center applications will result in more than 20% of new servers including workload accelerators.

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