Samsung Electronics (SE), which is the world's second largest semiconductor maker after Intel, is now just closing in on U. S. Chipmaker in terms of market capitalization.

In the year 2002, SE surpassed the maket value of Sony. This achievement brought Samsung to the forefront as an electronic giant.

Samsung is now expected, as per some analysts, to surpass Intel in market valuation in about a year. The reason to this progress can be attributed to the world economic crisis. Samsung's market share in the global memory chip industry has risen to about 27 percent from 21 percent at the end of last year.

SE is also widening the gap with Sony in flat TVs and mobile phones. It is the world's largest TV maker and the second largest mobile phone maker.

Samsung's market cap has risen to US$91.5 billion from US$61.8 billion a year ago. Intel's market value was down by almost 14 percent from a year earlier.

"It is quite likely Samsung will surpass Intel in market cap within a year, unless there's a dramatic recovery in PC demand," said Song Myung Sup, electronics analyst at brokerage HI Investment & Securities.

Samsungs success comes largely from its balanced business portfolio. Earlier about 60 percent of its profit came from its memory chip business. This was reversed when analysts forecast a recovery in semiconductor demand, handsets and TVs now represent about half of the total profit. The memory chip business contributes for far below a third of Samsung's overall profit and the remainder comes from its liquid_crystal business.