In this piece, we will take a look at the 20 largest semiconductor companies in the world. For more companies, head on over to 5 Largest Semiconductor Companies in the World.
The semiconductor industry is the backbone of the technology sector. This is due to the fact that every gadget and computer needs a processor to function – whether its a small Juul or a massive supercomputer. At the same time, and especially when it comes to high end technology devices, semiconductors can only be manufactured by a few large companies – which leads to scarce supply and huge demand.
At the same time, chipmakers are not the only semiconductor companies. The entire ecosystem is made up of countless firms, that range from those that provide the tools to design chips, to those that supply essential raw materials and chemicals for preparing silicon for its journey inside the massive manufacturing machines, and the suppliers of the machines themselves. Then, more firms are responsible for providing quality control testing equipment as well as packaging the chips inside boards that enable them to power up computers and other devices. This is not to mention that while all these firms are responsible for making the chips, their services wouldn’t be required if it weren’t for designers such as Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) who are responsible for generating demand in the chipmaking sector by creating new product blueprints.
Therefore, it’s clear that the chipmaking industry is one of the most diverse sectors out there, and unlike many, it is also one that has crucial links in the supply chain that are isolated in geographical regions. For instance, the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) – the world’s largest contract chip manufacturer – has the bulk of its chip production in Taiwan. However, the industry that is responsible for aiding TSMC in making these chips – the design and quality equipment firms mentioned above – is located primarily in the U.S., to a vast geographical divide.
US-China Semiconductor Wars
This divide is also one of the hottest topics in the technology industry these days. After determining that China is using advanced chip products designed for civilian use for military purposes, the U.S. government has placed limits on the technologies that can be shipped to the country. The latest set of these rules came under the Biden Administration, with the Commerce Department announcing in October 2022 that American origin equipment that could end up being used to develop advanced chips in China would face new rules for approval. Those with a Green Card would be limited from working in the Chinese chipmaking industry, and equipment destined for advanced foundries that make chips smaller than 14-nanometers would face a ‘presumption of denial’ under American law. These rules seem to be having the intended effects, as China’s largest chipmaker, the Semiconductor Manufacturing International Corporation (SMIC), has repeatedly outlined this year that its new facility in Beijing is facing delays due to “bottleneck equipment” and China’s imports of semiconductor manufacturing machines have also dropped by 15% last year. Of course, other firms such as TSMC have also reported equipment delays, so it’s uncertain what magnitude of the delays has been influenced by the new sanctions.
Despite these headwinds, the semiconductor industry value is expected to undergo a huge growth in the coming years. As we reported back in December, several research reports estimate that the semiconductor industry’s worth could cross $1 trillion in the near future.
Any mention of the semiconductor industry is incomplete without the world’s largest chipmaker in terms of production output, Intel Corporation (NASDAQ:INTC). Intel, which has fallen behind TSMC when it comes to chip manufacturing technology, is currently building several new chipmaking facilities and managing a tough macroeconomic environment – one that has also allegedly seen the firm flood the market with products simply to retain retail shelf space. In its earnings call for the fourth quarter of 2022, Intel’s chief executive officer Mr. Patrick Gelsinger outlined:
In addition, our manufacturing organization performed well throughout calendar year 2022. Starting the year, navigating the worst supply-constrained environment in over 20 years, only to have to pivot in Q2 to respond to rapidly changing demand signals, which are now driving near-term under-loading in our factory network. More importantly, we continue to push forward with the next phase of IBM 2.0 creating an internal foundry, evolving our systems business practices and culture to establish a leadership cost structure. This new approach is already gaining momentum internally. As a reminder, the internal foundry model will place our BUs in a similar economic footing as external IFS customers, and will allow our manufacturing group and BUs to be more agile, make better decisions and uncover efficiency and cost savings.
We have identified nine different subcategories for operational improvement that our teams will aggressively pursue. In addition to establishing better incentives, this new approach will provide transparency on our financial execution, allowing us to better benchmark ourselves against other foundries and drive to best-in-class performance.
Today, we’ll look at some of the largest semiconductor companies in the world, with the top picks being Samsung Electronics Co., Ltd. (KRX:005930.KS), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and NVIDIA Corporation (NASDAQ:NVDA).
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Our Methodology
We first listed down the major players in all areas of the semiconductor supply chain. These were then sorted through their market capitalization, and the top picks were chosen for this article.
Largest Semiconductor Companies in the World
20. STMicroelectronics N.V. (NYSE:STM)
Latest Market Capitalization: $44.5 billion
STMicroelectronics N.V. (NYSE:STM) is a European chipmaking company that provides automotive, power management and other products.
By the end of last year’s fourth quarter, 18 of the 943 hedge funds polled by Insider Monkey had bought a stake in STMicroelectronics N.V. (NYSE:STM). The firm’s largest investor is Steven Cohen’s Point72 Asset Management which owns 2.4 million shares that are worth $87 million.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Samsung Electronics Co., Ltd. (KRX:005930.KS), and NVIDIA Corporation (NASDAQ:NVDA) are met by
19. Microchip Technology Incorporated (NASDAQ:MCHP)
Latest Market Capitalization: $45.59 billion
Microchip Technology Incorporated (NASDAQ:MCHP) is an American firm that provides microcontrollers, microprocessors, and other products. It is based in Chandler, Arizona.
46 of the 943 hedge funds part of Insider Monkey’s database had invested in Microchip Technology Incorporated (NASDAQ:MCHP) during Q4 2022. Out of these, Ken Griffin’s Citadel Investment Group is the firm’s largest investor through a $265 million stake.
18. NXP Semiconductors N.V. (NASDAQ:NXPI)
Latest Market Capitalization: $46.4 billion
NXP Semiconductors N.V. (NASDAQ:NXPI) is a Dutch company headquartered in Eindhoven, the Netherlands. It provides communications and processing products. NXP’s criticality to the automotive supply chain makes it one of the biggest semiconductor firms in the world.
As of last year’s fourth quarter, 45 of the 943 hedge funds surveyed by Insider Monkey had bought a stake in the company. Out of these, NXP Semiconductors N.V. (NASDAQ:NXPI)’s largest investor is Israel Englander’s Millennium Management which owns 1.4 million shares that are worth $232 million.
17. Infineon Technologies AG (ETR:IFX.DE)
Latest Market Capitalization: $49.38 billion
Infineon Technologies AG (ETR:IFX.DE) is a German company that makes chips for cars, home appliances, industrial products, and more. It is based in Neubiberg, Germany.
16. KLA Corporation (NASDAQ:KLAC)
Latest Market Capitalization: $52.48 billion
KLA Corporation (NASDAQ:KLAC) provides products and services that are used in chip manufacturing by controlling yield, quality, and other areas.
Insider Monkey dug through 943 hedge fund portfolios for last year’s fourth quarter and found out that 44 had bought a stake in KLA Corporation (NASDAQ:KLAC). Out of these, Panayotis Takis Sparaggis’s Alkeon Capital Management is the firm’s largest shareholder. It owns 700,223 shares that are worth $264 million.
15. Synopsys, Inc. (NASDAQ:SNPS)
Latest Market Capitalization: $56.32 billion
Synopsys, Inc. (NASDAQ:SNPS) is an American electronic design automation products provider. The firm provides products for semiconductor design.
Insider Monkey’s 943 hedge fund survey for Q4 2022 revealed that 44 funds had held a stake in the company. Synopsys, Inc. (NASDAQ:SNPS)’s largest investor in our database is Panayotis Takis Sparaggis’ Alkeon Capital Management which owns 1.6 million shares that are worth $534 million.
14. Tokyo Electron Limited (TYO:8035.T)
Latest Market Capitalization: $55 billion
Tokyo Electron Limited (TYO:8035.T) is a Japanese firm that sells chip production equipment. This includes products that are used in several manufacturing processes such as etching, bonding, and deposition. It is headquartered in Tokyo, Japan.
13. Micron Technology, Inc. (NASDAQ:MU)
Latest Market Capitalization: $59.21 billion
Micron Technology, Inc. (NASDAQ:MU) is an American semiconductor manufacturer and designer. The firm primarily sells memory products that are used alongside processors in different devices.
As of December 2022, 74 of the 943 hedge funds polled by Insider Monkey had bought Micron Technology, Inc. (NASDAQ:MU)’s shares. Out of these, Andreas Halvorsen’s Viking Global is the firm’s largest investor as it owns 8.3 million shares that are worth $417 million.
12. Lam Research Corporation (NASDAQ:LRCX)
Latest Market Capitalization: $66.65 billion
Lam Research Corporation (NASDAQ:LRCX) is a semiconductor manufacturing equipment provider. It is headquartered in Fremont, California.
Insider Monkey dug through 943 hedge fund portfolios for their fourth quarter of 2022 investments and found out that 68 had bought Lam Research Corporation (NASDAQ:LRCX)’s shares. The firm’s largest shareholder is Ken Fisher’s Fisher Asset Management which owns a $1.1 billion stake.
11. Analog Devices, Inc. (NASDAQ:ADI)
Latest Market Capitalization: $94.38 billion
Analog Devices, Inc. (NASDAQ:ADI) provides signals processing and other semiconductor products. It is based in Wilmington, Massachusetts.
By the end of last year’s fourth quarter, 75 of the 943 hedge funds surveyed by Insider Monkey had bought Analog Devices, Inc. (NASDAQ:ADI)’s shares. The firm’s largest investor is David Blood and Al Gore’s Generation Investment Management which owns 5.1 million shares that are worth $838 million.
10. Applied Materials, Inc. (NASDAQ:AMAT)
Latest Market Capitalization: $101.7 billion
Applied Materials, Inc. (NASDAQ:AMAT) makes and sells chip manufacturing equipment. The firm is based in Santa Clara, California.
Insider Monkey scoured through 943 hedge fund holdings for last year’s December quarter and found out that 70 had bought the firm’s shares. Applied Materials, Inc. (NASDAQ:AMAT)’s largest hedge fund investor is David Blood and Al Gore’s Generation Investment Management which owns6 .9 million shares that are worth $678 million.
9. Intel Corporation (NASDAQ:INTC)
Latest Market Capitalization: $115.9 billion
Intel Corporation (NASDAQ:INTC) is one of the largest chipmakers in the world, which runs its own manufacturing facilities. The firm is based in Santa Clara, California.
By the end of Q4 2022, 62 of the 943 hedge funds surveyed by Insider Monkey had bought a stake in the company. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is Intel Corporation (NASDAQ:INTC)’s largest investor with a $524 million stake.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Latest Market Capitalization: $129.9 billion
QUALCOMM Incorporated (NASDAQ:QCOM) is an American company that provides processing and connectivity products for smartphones and other devices. Since it is the only primary supplier of mobile products, it is one of the biggest semiconductor companies in the world. It is based in San Diego, California.
Insider Monkey took a look at 943 hedge funds for their fourth quarter of 2022 investments and found out that 82 had bought QUALCOMM Incorporated (NASDAQ:QCOM)’s shares. Out of these, the company’s largest investor is David Goel and Paul Ferri’s Matrix Capital Management which owns 3.3 million shares that are worth $366 million.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Latest Market Capitalization: $140.9 billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a central processing unit and graphics processing unit designer headquartered in Santa Clara, California.
97 of the 943 hedge funds polled by Insider Monkey during 2022’s December quarter had invested in the firm. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management which owns 25.8 million shares that are worth $1.6 billion. Over the years, AMD’s rapid rise to success has made it one of the biggest chip companies on the planet.
6. Texas Instruments Incorporated (NASDAQ:TXN)
Latest Market Capitalization: $159.2 billion
Texas Instruments Incorporated (NASDAQ:TXN) is an American firm that sells power products and signal processors. It is based in Dallas, Texas.
By the end of 2022’s final quarter, 61 of the 943 hedge funds surveyed by Insider Monkey had bought a stake in Texas Instruments Incorporated (NASDAQ:TXN). The firm’s largest investor is Jean-Marie Eveillard’s First Eagle Investment Management which owns 3.6 million shares that are worth $604 million.
Samsung Electronics Co., Ltd. (KRX:005930.KS), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and NVIDIA Corporation (NASDAQ:NVDA) are some of the largest semiconductor firms in the world.
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Disclosure: None. 20 Largest Semiconductor Companies in the World is originally published on Insider Monkey.