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In this article, we will be taking a look at the 15 biggest microchip companies in the world. To skip our detailed analysis, you can go directly to see the 5 Biggest Microchip Companies in the World.
The microchip, or semiconductor industry consists of companies engaged in the production of semiconductors and related devices which can include integrated circuits and transistors. It is one of the more recent industries out there, having come into existence in 1960. By 2018, the industry was making close to half a trillion dollars in annual revenue, recording total sales of $556 billion in 2021. 2021 saw more than 1.1 trillion semiconductor chips being shipped, setting a new record for the total number of semiconductor chips being issued in a single year. It is also one of the most important industries as it provides products for the tech and electronics industry. The tech industry reached sales of over $5 trillion in 2018, while e-commerce exceeded $29 trillion in sales in 2017. In 2027, the semiconductor industry is expected to be worth more than $726 billion.
The semiconductor industry is mainly used for computers and related equipment, which makes up 32.3% of the total market share of microprocessors. This is followed by consumer electronics which makes up nearly a fifth of the total market share. Telecommunications equipment, industrial electronics, defense and aerospace industry, and the transportation industry account for the remaining major market share of the microdevices industry.
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China is the one of the biggest producers and markets of semiconductors and includes a variety of companies such as integrated device manufacturers to fabless semiconductor companies to pure-play foundries. While China has many major companies in each type of industry, all of its companies fail to make the list of the biggest microdevice companies in the world. The Chinese semiconductor industry is about to experience further setbacks as in October 2021, the U.S. Department of Commerce announced that there would be 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 on the Chinese industry, while uncertain, will be significant, especially for the companies working on technology nodes that are less than a decade long.
Most of the biggest microchip companies in the world are in the United States, with 10 of the biggest 15 being located in the country, with the others being in South Korea, Japan and Taiwan. In 2022, the semiconductor industry will be worth $600 billion though most of this will be concentrated among a few companies in just a handful of countries. The semiconductor industry has been affected by major supply chain shortages over the past two years, and even though semiconductor chips can often cost less than a dollar, a delay in their delivery can result in the delay of the assembly of a device worth tens of thousands of dollars. In fact, assessments are that the supply delays of microchips resulted in the loss of more than $500 billion either directly or indirectly, with lost auto sales being worth $210 billion in 2021 alone. While these shortages are expected to continue in the first half of 2023, the industry is still expected to grow by 10% while companies within the industry will continue to innovate and digitize. So, without further ado, let's take a look at the biggest companies in one of the most integral industries right now, starting with number 15:
15. Analog Devices, Inc. (NASDAQ:ADI)
Total revenue of the company (in billions): 8.4
Total profit of the company (in billions): 1.3
Total assets of the company (in billions): 83.3
Total market cap of the company (in billions): 81.3
Analog Devices, Inc. (NASDAQ:ADI) kicks off our list and specializes in power management technology, signal processing and data conversion. Analog Devices, Inc. (NASDAQ:ADI) currently has over 100,000 employees. Analog Devices, Inc. (NASDAQ:ADI) provides products to several industries including computer, instrumentation, military and aerospace.
14. Tokyo Electron
Total revenue of the company (in billions): 17.1
Total profit of the company (in billions): 3.6
Total assets of the company (in billions): 15
Total market cap of the company (in billions): 49.5
Tokyo Electron is the biggest microchip company in Japan. The company tried to merge with Applied Materials to form a company which would have become the biggest supplier of semiconductor processing equipment, but the merger was cancelled due to antitrust concerns.
13. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Total revenue of the company (in billions): 16.4
Total profit of the company (in billions): 3.2
Total assets of the company (in billions): 12.4
Total market cap of the company (in billions): 119
With sales of over $16 billion, Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the biggest microdevice companies in the world. Advanced Micro Devices, Inc. (NASDAQ:AMD) currently has over 15,000 employees.
12. Lam Research Corporation (NASDAQ:LRCX)
Total revenue of the company (in billions): 16.7
Total profit of the company (in billions): 4.5
Total assets of the company (in billions): 16.6
Total market cap of the company (in billions): 62.4
Lam Research Corporation (NASDAQ:LRCX) provides services to the semiconductor industry in addition to providing wafer fabrication services. Lam Research Corporation (NASDAQ:LRCX) products are used in front-end wafer processing which are integral for the manufacture of semiconductors.
11. Applied Materials, Inc. (NASDAQ:AMAT)
Total revenue of the company (in billions): 24.2
Total profit of the company (in billions): 6.6
Total assets of the company (in billions): 25.4
Total market cap of the company (in billions): 90.4
Applied Materials, Inc. (NASDAQ:AMAT) is engaged in several aspects of the semiconductor industry including services, software and supply of equipment. Applied Materials, Inc. (NASDAQ:AMAT) supplies semiconductor chips which are used in flat panel displays for smartphones, televisions and computers. Applied Materials, Inc. (NASDAQ:AMAT) has close to 27,000 employees.
10. Texas Instruments Incorporated (NASDAQ:TXN)
Total revenue of the company (in billions): 18.3
Total profit of the company (in billions): 7.7
Total assets of the company (in billions): 24.7
Total market cap of the company (in billions): 159.1
Headquartered in Dallas, Texas Instruments Incorporated (NASDAQ:TXN) manufactures integrated circuits and semiconductors. Among the products manufactured by Texas Instruments Incorporated (NASDAQ:TXN) are embedded processors and analog chips. Texas Instruments Incorporated (NASDAQ:TXN) currently holds close to 50,000 patents.
9. SK Hynix
Total revenue of the company (in billions): 37.6
Total profit of the company (in billions): 8.4
Total assets of the company (in billions): 81.1
Total market cap of the company (in billions): 45.4
The South Korean company supplies flash memory chips and dynamic random-access memory chips. SK Hynix has manufacturing sites in the United States, South Korea, Taiwan and China. The company counts some of the biggest tech companies as its customers.
8. ASML Holding N.V. (NASDAQ:ASML)
Total revenue of the company (in billions): 20.7
Total profit of the company (in billions): 6.1
Total assets of the company (in billions): 33.6
Total market cap of the company (in billions): 236
One of the few top non-US companies in the microdevice industry, the Dutch corporation specializes in the production of photolithography machines which are used in the production of computer chips. Not only is ASML Holding N.V. (NASDAQ:ASML) the largest supplier of the semiconductor industry, it is the only supplier of extreme ultraviolet lithography photolithography machines which are used in the manufacture of the most advanced chips. ASML Holding N.V. (NASDAQ:ASML) is currently the most valuable tech company in Europe in terms of market capitalization.
7. Micron Technology, Inc. (NASDAQ:MU)
Total revenue of the company (in billions): 31.2
Total profit of the company (in billions): 9.0
Total assets of the company (in billions): 63.7
Total market cap of the company (in billions): 77.5
Micron Technology, Inc. (NASDAQ:MU) is known for its production of computer data storage and computer memory devices, which include USB flash drives, flash memory and dynamic random-access memory. Micron Technology, Inc. (NASDAQ:MU) also worked with Intel to create IM Flash Technologies, which resulted in the production of NAND flash memory. Micron Technology, Inc. (NASDAQ:MU) provides consumer products primarily under the Crucial brand.
6. Broadcom Inc. (NASDAQ:AVGO)
Total revenue of the company (in billions): 28.5
Total profit of the company (in billions): 7.8
Total assets of the company (in billions): 73.2
Total market cap of the company (in billions): 209
One of many American companies in our list of the biggest microdevice companies in the world, Broadcom Inc. (NASDAQ:AVGO) was embroiled in controversy in 2019 after the European Union accused the company of anticompetitive practices which are alleged to have violated the European Union competition law. Broadcom Inc. (NASDAQ:AVGO) is also one of the leading companies in terms of number of patents for semiconductor products.
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Disclosure: None. 15 biggest microchip companies in the world is originally published at Insider Monkey.
