Top 10 fables chip makers revenue up by 12.5% in Q2 2023 ,while NVIDIA overtakes Qualcomm

Date: 06/10/2023
Market researcher TrendForce reported that Q2 revenue for the top 10 global fables IC chip design companies rose to US $38.1 billion, marking a 12.5% quarterly increase. NVIDIA takes the lead in this growth overtaking Qualcomm in ranking, while the others in top 10 remained stable.

Further findings by TrendForce includes:
NVIDIA is reaping the rewards of a global transformation. Bolstered by the global demand from CSPs, internet behemoths, and enterprises diving into generative AI and large language models, NVIDIA's data center revenue skyrocketed by a whopping 105%. A deluge of shipments, including the likes of their advanced Hopper and Ampere architecture HGX systems and the high-performing InfinBand, played a pivotal role. Beyond that, both gaming and professional visualization sectors thrived under the allure of fresh product launches. Clocking a Q2 revenue of US$11.33 billion (a 68.3% surge), NVIDIA has vaulted over both Qualcomm and Broadcom to seize the IC design throne.

Qualcomm's Q2 took a hit as the Android smartphone sector grappled with dwindling demand and Apple's modem pre-purchases resulted in a subdued seasonal rhythm. Consequently, their revenue slid by 9.7%, rounding off at about US$7.17 billion. Broadcom, while benefiting from AI-ignited demand for high-end switches and routers, faced headwinds with revenue drops in server storage, broadband, and wireless. The result was a second-quarter revenue that essentially mirrored the previous quarter at around US$6.9 billion.

AMD's Q2 performance plateaued at about $5.36 billion, weighed down by a slump in gaming GPU sales and its embedded segment operations. Conversely, MediaTek, after several quarters of inventory recalibration, witnessed a resurgence with components like TV SoCs and Wi-Fi stabilizing. The added impetus of urgent TV orders and escalating shipments for mobile phones, smart platforms, and power management Ics boosted MediaTek's Q2 to a solid US$3.2 billion.
Marvell, though buoyed by AI deployments in data centers, faced headwinds with a decline in On-Premise Servers (enterprise private clouds). End-user demand remained frail, and with sectors like data centers, telecom infrastructure, and enterprise networking facing revenue drops, Marvell's Q2 took a 1.4% hit, culminating at roughly $1.33 billion.

Taiwan's IC design stalwart Novatek flourished as customers replenished TV-related inventories and ushered in novel products such as OLED DDI. Realtek, drawing strength from supply chain restocking of PC/NB-centric Ics, reported quarterly growths of 24.7% and 32.6%, respectively. Yet, without substantial signs of a holistic revival in end-sales and inventory restocking, growth in H2 seems set to face challenges.

Will Semiconductor secured the ninth spot with a Q2 revenue of $528 million, registering a modest decline of about 1.9%. Hot on its heels is the US-based power IC maestro, MPS, with its Q2 revenue tallying up to $441 million—a slip of approximately 2.2%.

Peering into Q3, while inventory levels across companies paint a rosier picture than H1, a pervasive end-user demand slump urges caution. However, a silver lining emerges with CSPs, internet titans, and private firms flocking to generative AI and large language models. As these high-value AI offerings gain traction, TrendForce projects that the top ten global IC design giants will continue their double-digit ascent in Q3, potentially reaching record-breaking figures.


Source: TrendForce