© pichetw dreamstime.com Analysis | May 16, 2017
Broadcom dethroned Qualcomm as Top IC design house
Nearly all companies listed on TrendForce’s revenue ranking of the global top 10 fabless IC design houses for the first quarter posted year-on-year growth.
Novatek was the sole exception and saw a slight dip in its revenue compared with the same period a year ago. For IC companies, the growing sources of end-market demand for this year come from networking equipment, data centers, servers and automotive electronics. Broadcom Limited, which is a major supplier of products related to network infrastructure and wireless communication, dethroned Qualcomm as the revenue leader for the first quarter of 2017. NVIDIA exhibited impressive growth recently and took third place by displacing MediaTek, which occupied that spot for quite a long period. TrendForce analyst CY Yao pointed out Broadcom Limited, which was the resulting entity of Avago’s acquisition of Broadcom Corporation, has remained a dominant beneficiary of the worldwide market for network infrastructure. The company’s revenue already surpassed Qualcomm’s by the fourth quarter of 2016. Yao added that Qualcomm has been fending off competition from HiSilicon and Spreadtrum as well as contending with the stalling growth of the smartphone market. “As a subsidiary of the world’s third-largest smartphone brand Huawei, HiSilicon is now supplying mobile SoCs used in the majority of its parent company’s products,” said Yao. “Also, Qualcomm’s chip business in the short term will have difficulty to return to making around USD 4 billion a quarter on average.” Major Fabless IC Design Houses (revenues 1Q/2016 and 1Q/2017; in USD million)
* NVIDIA's revenue excludes revenues from OEM businesses and IP licensing
** Exchange rate between USD and NTD for this table is 1:31
*** Qualcomm's revenue includes revenue from Qualcomm CDMA Technologies (QCT) and excludes all other sources such as Qualcomm Technology Licensing (QTL)
NVIDIA posted the largest revenue increase among the top ten design houses in the first quarter with a year-on-year growth rate reaching 60.3 percent. In addition to data centers and gaming products as its main revenue sources, NVIDIA has also made gains in the automotive electronics market. MediaTek, which was overtaken by NVIDIA and dropped to fourth place, faces the same problems as Qualcomm but is experiencing more severe impacts. MediaTek’s revenue result for this first quarter was slightly positive.
On the other hand, the company has encountered a major setback with the sales of its Helio X30. Though designed for flagship smartphones, X30 has not been well received among major brand vendors. The lack of interest in X30 could continue to adversely affect MediaTek’s revenue going into the second quarter. Yao believes that if MediaTek is unable to make a turnaround soon, the company’s chance of returning to the third place of the ranking is going to be slim.
On the whole, most design houses in the ranking have been maintaining a healthy level of revenue growth. Demand pertaining to networking equipment, data centers and servers are significant revenue drivers for major chip companies such as Broadcom Limited, NVIDIA and Xilinx. Going forward, the majority of the companies in the top 10 ranking are expected to record revenue growth for this second quarter. In the smartphone chip market, Qualcomm’s lead over MediaTek could widen as shipments of Qualcomm’s Snapdragon 835 expands.
More information can be found at Trendforce.
|Ranking||Company||1Q/17||1Q/16||YoY in %|
EUV photoresist company Inpria raises $31 million in funding Inpria, a pioneer in high-resolution metal oxide photoresists for extreme ultraviolet lithography (EUV), has secured USD 31 million in Series C funding from a broad syndicate including two of the biggest names within the semiconductor manufacturing space.
Semiconductor industry avoids direct impact of coronavirus The semiconductor industry appears to have escaped the direct impact of the coronavirus crisis so far, but the market is likely to suffer the repercussions as the outbreak slows or suspends production among electronics manufacturers, according to Omdia.
Plessey partners with Axus Technology Plessey, an embedded technologies developer, is partnering with Axus Technology (Axus), a provider of CMP, wafer thinning and wafer polishing surface-processing solutions for semiconductor applications, to bring high-performance GaN-on-Silicon monolithic microLED technology to the mass market.
GPV Electronics CN resumes production On 19 February 2020, the Chinese Central Government informed that all enterprises in the Guangdong province are now allowed to resume production.
Nano Dimension moves its main commercial activity to USA Nano Dimension announces that the company is establishing its headquarters for the Americas in South Florida.
Rockwell Automation inks deal for Italy’s ASEM Rockwell Automation Inc. has signed a purchase agreement to acquire digital automation technologies provider ASEM S.p.A.
IFR releases ‘Top Trends 2020 Robotics’ The International Federation of Robots (IFR) has forecasted an uptick of 2 million industrial factory robotic units in the next two years.
Paslin, Rivian fuel EV factory expansion The Paslin Company, a builder of robotic assembly lines for Tier 1 suppliers and OEM auto companies, is expanding in Warren, Michigan.
Nokia plans to acquire US-based company The Finnish telecom company is planning to acquire Elenion Technologies, a U.S.-based company focusing on silicon photonics technology.
neutec electronic to handle Asymtek and Dima in Switzerland Asymtek, a part of Nordson Electronics Solutions - announces that their distributor, neutec electronic AG, has expanded its representation of all Asymtek and DIMA products to the French-speaking areas of Switzerland.
BMZ subsidiary Poland reports successful business year 2019 BMZ Poland, the second largest production site of the BMZ Group, is expanding its production area and is reporting 10% sales growth and thereby reached record results for the business year 2019.
Scanfil CEO: ‘Our operations are making good progress’ The last quarter of 2019 was the strongest one for the EMS provider. Scanfil recorded a turnover of EUR 155 million, a growth of EUR 15 million or 10% year-over-year.
Prime Technological Services acquire ITS EMS provider Prime Technological Services LLC has acquired Georgia-based I Technical Services (ITS).
Florida’s Sypris snags BAE Systems contract Sypris Electronics LLC, a subsidiary of Sypris Solutions Inc., has won a contract award from London-based BAE Systems’ Electronic Systems sector.
Into the future, San Diego style IPC APEX EXPO, the North American electronics manufacturing industry’s biggest gig, has left the teenage years behind with this year’s 20th anniversary show held Feb 3-8 in San Diego.
5 semiconductor companies hold 53% of global wafer capacity The world’s top-five wafer capacity leaders each had capacity of more than 1,000,000 wafer starts per month, says IC Insights.
Global DRAM revenue holds steady in 4Q19 The DRAM inventory finally returned to a relatively normal level for most OEMs in 4Q19 after nearly three consecutive quarters of adjustments, says the DRAMeXchange research division of TrendForce.
Mitsubishi Electric completes new satellite production facility Mitsubishi Electric has completed construction of a new facility for the production of satellites at the company’s Kamakura Works in Kamakura, Japan.
ISS-Broadband delivered by Kongsberg Kongsberg equipment is to enable broadband transmission for the International Space Station (ISS) to 'significantly improve communication between the ESA astronauts manning the station and earth.
Mycronic receives order for an SLX mask writer Swedish equipment provider, Mycronic AB, has received an order for the new SLX mask writer from a customer in Asia. The customer already has mask writers from Mycronic.
A new production unit for mirror segments for ELT Safran's new production unit at the company's Saint-Benoît facility near Poitiers in central France will make the primary mirror segments for Europe's Extremely Large Telescope (ELT).
A more sustainable approach to semiconductor manufacturing Reuse; that is the key to driving environmental sustainability in global semiconductor manufacturing, says Steven Zhou, CEO of Moov Technologies.Load more news