Biggest Microchip Companies in the World
The microchip, or semiconductor industry consists of companies which are involved in the production of semiconductors chips and other related devices which includes ICs (integrated circuits and transistors). This is one of the new industries which came into existence in 1960. Before 2018, the semiconductor industry was making nearly half a trillion dollars per annum in revenue, recording total sales of approximately $556 billion in the year 2021. In 2021 more than 1.1 trillion semiconductor chips were shipped, setting a new record for the total number of semiconductor chips and ICs being issued in one single year. It is one of the most important industries because it supplies products for the tech and electronics manufacturers all over the world. The tech industry reached sales of nearly $5 trillion in the year 2018, while e-commerce business exceeded $29 trillion in sales in the year 2017. According to the market projections, the semiconductor industry is expected to be worth more than $726 billion, in the year 2027.
The microchip and semiconductor industry is generally used for computers and other related equipment, which makes up about 32.3% of the total market share of the microprocessors. This is followed by consumer electronics products which make up about 20% of the total market share. Telecommunications equipments and devices, industrial electronics, aerospace and defense industry, and the transportation industry account for the remaining major share of the semiconductor industry market.
China is the biggest manufacturer and market of integrated circuits and semiconductors and includes a variety of companies such as IC manufacturers to fabless semiconductor companies. The Chinese semiconductor industry is about to experience setbacks as in October 2021, the U.S. Department of Commerce announced that there would be major changes to export control policies towards China, with the major focus of this revision impacting the semiconductor industry and the artificial intelligence industry. The impact of this sanction imposed by US Govt on the Chinese industry will be significant, especially for those companies which are working on IC manufacturing from over a decade.
Most of the biggest microchip and semiconductor companies in the world are in the United States of America, with 10 of the 15 largest companies being located in the country. Other companies are based in countries like South Korea, Japan, and Taiwan. In 2022, the IC and semiconductor industry will be worth more than $600 billion, though most of it will be concentrated among a few companies in only a few countries. The semiconductor industry has been severely affected by supply chain shortages over the last two years, and even though ICs and semiconductor chips can often cost less than a dollar, a delay in their delivery results in the delay of the assembly of a device worth a huge amount of money. In fact, market assessments indicate that the supply delays of ICs and microchips resulted in the loss of more than $500 billion throughout the world, either directly or indirectly, with lost auto sales being worth nearly $210 billion in 2021 alone. While these shortages of chips and semiconductors are expected to continue in the first half of the coming year 2023, the industry is still expected to grow by about 10%, while companies within the semiconductor industry will continue to focus on innovation and digitization. So, without further ado, let’s have a look at one of the biggest companies in the semiconductor market, starting with number 15:
15 Biggest Microchip Companies / Manufacturers in the World
15. Analog Devices, Inc. (NASDAQ:ADI)
Total revenue in USD (in billions): 8.4
Total profit in USD (in billions): 1.3
Total assets in USD (in billions): 83.3
Total market cap in USD (in billions): 81.3 Analog Devices, Inc. (NASDAQ:ADI) is on the 15th position, this company specializes in signal processing, power management technology and data conversion. Analog Devices, Inc. (NASDAQ:ADI) currently has more than 100,000 employees. Analog Devices, Inc. (NASDAQ:ADI) supplies products to several other industries including computer, instrumentation, military and aerospace.
14. Tokyo Electron
Total revenue in USD (in billions): 17.1
Total profit in USD (in billions): 3.6
Total assets in USD (in billions): 15
Total market cap in USD (in billions): 49.5
Tokyo Electron is the biggest microchip manufacturer in Japan. The company tried to merge with tech giant Applied Materials to form a company which would have become the biggest supplier and manufacturer of semiconductor processing equipment, but the merger was cancelled due to some antitrust concerns.
13. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Total revenue in USD (in billions): 16.4
Total profit in USD (in billions): 3.2
Total assets in USD (in billions): 12.4
Total market in USD (in billions): 119
With sales of over USD16 billion, Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the biggest microdevice companies in the entire world. The company currently has over 15,000 employees.
12. Lam Research Corporation (NASDAQ:LRCX)
Total revenue in USD (in billions): 16.7
Total profit in USD (in billions): 4.5
Total assets in USD (in billions): 16.6
Total market cap in USD (in billions): 62.4
Lam Research Corporation (NASDAQ:LRCX) provides services to the other semiconductor companies in addition to providing wafer fabrication (manufacturing) services. Lam Research Corporation (NASDAQ:LRCX) products are used in front-end wafer processing which are very important for the manufacture of semiconductor devices.
11. Applied Materials, Inc. (NASDAQ:AMAT)
Total revenue in USD (in billions): 24.2
Total profit in USD (in billions): 6.6
Total assets in USD (in billions): 25.4
Total market cap in USD (in billions): 90.4 Applied Materials, Inc. (NASDAQ:AMAT) is involved in several aspects of the semiconductor and IC industry including services, software and supply of instruments and equipments. Applied Materials, Inc. (NASDAQ:AMAT) provides semiconductor chips which are used display panels for smartphones, televisions and computers. Applied Materials, Inc. (NASDAQ:AMAT) has more than 27,000 employees.
10. Texas Instruments Incorporated (NASDAQ:TXN)
Total revenue in USD (in billions): 18.3
Total profit in USD (in billions): 7.7
Total assets in USD (in billions): 24.7
Total market in USD (in billions): 159.1
Headquartered in Dallas, Texas Instruments Inc. (NASDAQ:TXN) manufactures ICs and semiconductors. Embedded processors and analog chips are their most demanded products. This company currently holds nearly 50,000 patents.
9. SK Hynix
Total revenue in USD (in billions): 37.6
Total profit in USD (in billions): 8.4
Total assets in USD (in billions): 81.1
Total market cap in USD (in billions): 45.4 This South Korean company supplies flash memory chips and dynamic RAM chips. SK Hynix has manufacturing plants in the United States, South Korea, Taiwan and China.
8. ASML Holding N.V. (NASDAQ:ASML)
Total revenue in USD (in billions): 20.7
Total profit in USD (in billions): 6.1
Total assets in USD (in billions): 33.6
Total market cap in USD (in billions): 236
One of the few top non-US companies in the semiconductor industry, the Dutch corporation has specialization in the production of photolithography machines which are used in the production of computer ICs. ASML Holding N.V. (NASDAQ:ASML) is currently the most valuable technology company in entire Europe in terms of market capitalization.
7. Micron Technology, Inc. (NASDAQ:MU)
Total revenue in USD (in billions): 31.2
Total profit in USD (in billions): 9.0
Total assets in USD (in billions): 63.7
Total market in USD (in billions): 77.5
Micron Technology, Inc. (NASDAQ:MU) is famous for its production of data storage and memory devices, which include flash memory, USB flash drives, and dynamic RAM. Micron Technology, Inc. (NASDAQ:MU) also worked with Intel Corporation to create IM Flash Technologies, which resulted in the production of NAND based flash memory.
6. Broadcom Inc. (NASDAQ:AVGO)
Total revenue in USD (in billions): 28.5
Total profit in USD (in billions): 7.8
Total assets in USD (in billions): 73.2
Total market cap in USD (in billions): 209
One of many American companies in this list of the biggest semiconductor companies in the world, Broadcom Inc. (NASDAQ:AVGO) was involved in controversy in 2019 after the EU (European Union) accused them of anticompetitive practices which are alleged to have violated the European Union’s competition law. Broadcom Inc. (NASDAQ:AVGO) is one of the leading companies in terms of patents for semiconductor products.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Total revenue in USD (in billions): 36
Total profit in USD (in billions): 10
Total assets in USD (in billions): 42.8
Total market cap in USD (in billions): 139
Headquartered in California, United States, QUALCOMM Incorporated (NASDAQ:QCOM) was founded in 1985 by seven entrepreneurs and has since grown to be a premier semiconductor company, while developing semiconductor parts for different devices such as computers, laptops, wi-fi, smartphones, smart-watches and vehicles. QUALCOMM Incorporated (NASDAQ:QCOM) currently has more than 50,000 employees.
4. NVIDIA Corporation (NASDAQ:NVDA)
Total revenue in USD (in billions): 26.9
Total profit in USD (in billions): 9.8
Total assets in USD (in billions): 44.2
Total market cap in USD (in billions): 383.8
Popularly known for the production of GPUs, NVIDIA Corporation (NASDAQ:NVDA) is also one of the largest microchip companies in the world. NVIDIA Corporation (NASDAQ:NVDA) mainly manufactures microchips for the automotive market and mobile computing industry. In 2020, NVIDIA Corporation (NASDAQ:NVDA) announced that it was purchasing Arm from SoftBank in a deal worth nearly $40 billion which is said to be the second biggest semiconductor acquisition in history.
3. Intel Corporation (NASDAQ:INTC)
Total revenue in USD (in billions): 79
Total profit in USD (in billions): 19.9
Total assets in USD (in billions): 123.4
Total market cap in USD (in billions): 190.3
Intel Corporation (NASDAQ:INTC) is one of the leader of the semiconductor industry, having been established in 1968, and has been one of the most important companies behind the rise of Silicon Valley as the technology center of the world.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Total revenue in USD (in billions): 61.5
Total profit in USD (in billions): 23.6
Total assets in USD (in billions): 139.4
Total market cap in USD (in billions): 426.5
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the most valuable semiconductor electronics company in the world. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also the biggest dedicated and independent semiconductor foundry and is among the largest companies in Taiwan. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) currently has a capacity of nearly fourteen million 300 mm-equivalent wafers from 2020 and was the first company to commercialize extreme ultraviolet lithography technology.
1. Samsung Electronics
Total revenue in USD (in billions): 208.9
Total profit in USD (in billions): 29.3
Total assets in USD (in billions): 318.3
Total market cap in USD (in billions): 310.5
Samsung Electronics tops the list of the 15 biggest microchip companies in the world. Samsung is involved in many industries but its main sources of income includes mobile phones manufacturing and semiconductors ever since the 1990s. It has been one of the largest chip manufacturers in terms of volumes for several years now.
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