© mikhail mishchenko dreamstime.com Analysis | November 22, 2018
Top 10 fabless IC design houses
TrendForce announced the ranking of top 10 fabless IC design houses worldwide based on their revenues for 3Q18, among which Qualcomm was the only one to post a slight decline.
The other nine companies all registered year-on-year growth in their revenue, driven by segments like networking, data center, automotive application and consumer electronics. Taiwan-based IC design houses in the ranking, including MediaTek, Novatek, and Realtek, showed remarkable performances in the third quarter due to stock-up demand from consumer electronics makers for the upcoming holiday sales. MediaTek has recovered from the revenue decline since the second quarter this year and grew by 3% in the third quarter. However, the only company in the ranking to see a drop was Qualcomm with a revenue decline of 0.1% YoY in 3Q18, “Qualcomm has adopted an aggressive product strategy, introducing five new processors with different market positioning by the end of the third quarter,” says senior analyst CY Yao from TrendForce. Its comprehensive product ranges also contributed to the shipment growth. However, the slowdown in the global smartphone market has resulted in lower prices, leading to a drop in Qualcomm’s revenue. The largest move upward in the revenue growth came from NVIDIA, which benefited from strong momentum in segments like gaming, professional vision, data center and automotive applications. Particularly, a remarkable revenue growth of 65.3% YoY was recorded for NVIDIA’s data center IC business in the third quarter. Following NVIDIA, Marvell registered the second highest revenue growth. After the acquisition of Cavium, Marvell’s revenue increased by 28.2% YoY in the third quarter, which brought Marvell to the sixth place in the ranking, surpassing Xilinx. The design houses headquartered in Taiwan kept pursuing better performances during the past quarter. MediaTek registered a rise of 3% YoY in sales in 3Q18, thanks to its continuous adjustments in product mixes. The company has allocated more capacity to its products on 12nm process and improved the cost structure of processors. It turned out to achieve a gross margin of 38.5% in the third quarter, the highest quarterly margin since 2016. On the other hand, Novatek’s SoC products received wider market reception, benefited from the favorable demand from global TV market. As for Realtek, it showed a growth of 7.9% YoY in the third quarter, driven by the growing networking market in China and the coming of year-end sales. Looking ahead to 4Q18 and 1Q19, Qualcomm will continue to deploy its aggressive product strategy in segments like RF transceiver components, automotive electronics and the Internet of Things. However, it remains to be seen whether the product adjustments can moderate the loss brought by the slowdown in the global smartphone market, says Yao. On the other hand, MediaTek has entered a period of stable development after one year of adjustments in operation and product portfolio, despite the impacts from lower smartphone sales. Despite the highest revenue growth among the top IC design houses, NVIDIA was short of the market expectations in terms of the results of revenue due to the lower-than-expected gaming sales. The gaming segment always contributes to the majority of NVIDIA’s revenue. For instance, graphics cards for gaming represent 60% of the company’s sales in 3Q18. However, the decreasing demand for cryptocurrency mining has resulted in excess Pascal mid-range gaming card inventory in the channel. In response, NVIDIA is bound to clear out inventory as soon as possible to facilitate the better sales of its new graphics cards with Turing architecture GPU. Therefore, NVIDIA may anticipate a period of adjustment in the near future with the revenue outlook impacted, as a result from selling the excess channel inventory of midrange Pascal products. Top 10 fabless IC design houses by revenue in 3Q18 (in USD million)
For more information visit Trendforce.
|Ranking||Company||3Q18 Revenue||3Q17 Revenue||YoY|
For more information visit Trendforce.
AQ Group appoints new CFO Christina Hegg has been appointed new CFO for AQ Group. She will start her new position in April 2020 and will be a member of Group Management.
Ventec invests in expansion of PTFE laminates manufacturing Ventec International has significantly increased its PTFE laminate manufacturing capabilities following a strategic investment in a new high-temperature press and lay-up/break-down line at its Suzhou (China) manufacturing plant.
Mitsubishi Electric Power Products to sell its Memphis factory Mitsubishi Electric Power Products, Inc. (MEPPI) has entered into an agreement to sell its power transformer factory located in Memphis, Tennessee to Hyosung Heavy Industries, known for the HICO brand in the United States.
MRSI moves to new facility MRSI Systems, which was acquired by Mycronic back in 2018, is moving to its new 102,000 square-foot facility in Tewksbury, Massachusetts.
Sponsored content by CMLCML putting the drive into e-mobility As the global demand and trend for e-mobility grows, we understand that customers are looking for products with better performance, stricter tolerance, increased reliability and cost effectiveness. This means your PCB provider must understand the challenge you are facing, be able to support you throughout the whole process – from the first technical questions to the end of life.
dSPACE adds West Coast office Simulation and validation specialist dSPACE has opened a Silicon Valley office in San Jose, California as part of its strategic realignment.
Cogiscan, BasiCAE form strategic partnership Quebec-based Cogiscan Inc. has announced a partnership with China’s BasiCAE Technology, a provider of traditional shop control systems and software customization services.
Korea hits new record of industrial robots in operation The World Robotics report presented by the International Federation of Robotics (IFR) shows a new record stock of about 300,000 operational industrial robots in the Republic of Korea in 2018 (+10%).
Keytronic starts production at its new Vietnam facility Keytronic Corporation says it has started shipping product from its new Da Nang, Vietnam manufacturing facility.
USI's looking to accelerate expansion - acquires Asteelflash It looks like we’re ending 2019 with a bang. One of the worlds biggest EMS providers wants to acquire one of Europe’s largest electronics manufacturers.
Devon manufacturer adds capabilities in Dorset via acqusition Devon-based PCB manufacturer, EuroTech Group, is acquiring PCB manufacturer Lyncolec, based in Poole, Dorset.
Kyocera and TactoTek collaborate on IMSE solution Kyocera and TactoTek has singed a marketing agreement which aims to bring IMSE solutions to several new market segments, including industrial and automotive components, electronic devices, and more.
IPC: Unanimous approval of USMCA needed IPC issued a statement this week expressing support of the recently bi-partisan approval of the United States-Mexico-Canada Agreement (USMCA), and a strong desire for legislative approval by Canada, Mexico, and the U.S.
Nordson's CFO to retire in 2020 after 30 years with the company Nordson's Executive Vice President and Chief Financial Officer, Gregory A. Thaxton, plans to retire in 2020 after thirty successful years with the company, with the last 12 years as CFO.
KUKA restructures subdivision due to economic uncertainty KUKA is restructuring a subdivision in the Robotics segment that is responsible for automated manufacturing solutions such as cells and special machines.
PCB industry recovers slightly in Q3 PCB manufacturers in the D/A/CH region were able to increase sales sequentially in the third quarter of 2019 by 1.1%. However, sales figures are 11% lower than those recorded for the third quarter of 2018, reports the industry association ZVEI PCB and Electronic Systems.
Garz & Fricke moves into new HQ in Hamburg-Harburg Garz & Fricke GmbH continues to expand. As of late October, the business operations of the HMI and Panel PC specialist will be transferring to the new headquarters in in Hamburg-Harburg.
TF Massif Technologies taps new CEO British Columbia-based TF Massif Technologies has announced the appointment of Tom Peregoodoff as the company’s new chief executive officer.
DoJ: Google, Fitbit deal under review The U.S. Justice Department is looking into anti-trust issues concerning Google's bid to buy Fitbit Inc.
L3Harris Tech secures U.S. Marine Corps order L3Harris Technologies received a USD 50 million follow-on delivery order for Falcon III AN/PRC-160 HF radios and related equipment from the U.S. Marine Corps .
Metair completes Romanian lithium-Ion battery cell factory South African energy storage company, Metair Investments, says that its Romanian units Prime Batteries and Rombat have completed the installation of the group's first Lithium-Ion battery cell manufacturing and assembly facility in Bucharest, Romania.
£5m award marks ‘topping out’ of Cardiff research powerhouse An GBP 80 million Cardiff University powerhouse for Welsh scientific research has been ‘topped out’ by Bouygues UK – backed by over GBP5 million support from Welsh Government and industrial partners.
Advanced Energy expands with new lab near Frankfurt Advanced Energy Industries, Inc. has opened its Advanced Materials Processing (AMP) Showcase Lab near Frankfurt, Germany.
TTM Technologies unveils NY engineering center On the heels of its acquisition of manufacturing and IP assets from i3 Electronics Inc., TTM Technologies has announced the opening of a new engineering center in Binghamton, NY.
EU Commission to support pan-European battery development Seven member states will provide, in the coming years, up to EUR 3.2 billion in funding to support research and innovation in the common European priority area of batteries.Load more news