On August 29th, Tuoba Industrial Research Institute announced the income ranking of the world's top ten IC design companies in the second quarter of 2019. The IC design companies ranked first to tenth were: Broadcom, Qualcomm, NVIDIA, MediaTek, AMD, Xilinx, Marvell, Novatek, Realtek, Dialog.
According to reports, in the second quarter of 2019, affected by the Sino-US trade friction and supply chain inventory, global consumer electronics products, including smartphones, tablets, laptops, LCD monitors, TVs and servers, did not meet expectations. The top five companies revenues have declined compared to the same period last year, of which NVIDIA's recession is the largest, reaching 20.1%, which is the first time in three years that NVIDIA has experienced an annual recession in three consecutive quarters.
Yao Jiayang, senior analyst at Tuoba Industrial Research Institute, said that the main markets of Broadcom and Qualcomm are in China. Under the influence of the trade war and the sluggish demand in the Chinese market, Chinese system operators were weak on the strength of component shipments, resulting in both Broadcom and Qualcomm's second-quarter revenues falling compared with the same period last year.
Qualcomm is also facing the rapid recovery of MediaTek and China's mobile phone chip maker Unisoc. Since 2018, MediaTek has continued to adopt the 12nm process to introduce mobile processor product lines, greatly optimizing product cost structure and improving product cost performance. Ziguang Zhanrui has placed the Cortex-A55 and A75 CPUs in the low-end and mid-range processors, and has also brought more choices to customers, making Qualcomm face severe competition in the low-end market.
As for the top ten players, NVIDIA, which has the largest decline, despite its growth in automotive and professional vision applications, and actively controls the high inventory problems in the early stage, it is still affected by the sharp decline in game graphics and data center products. Lived in three consecutive quarters of revenue recession. However, NVI's second-quarter recession has been slightly stabilized compared to the first quarter, and with the effective reduction in inventory, the third-quarter revenue decline is expected to continue to shrink.
MediaTek's second-quarter revenue was NT$61.067 billion. Compared with the same period in 2018, the gross profit margin continued to rise. However, due to the exchange rate relationship, the second quarter revenue declined 2.7% compared with the same period last year.
Although MediaTek and Qualcomm are also affected by the sluggish demand in the global smartphone market, MediaTek continues to build a cost-effective mobile application processor product line with 12nm process, and gradually introduce it into the low-end market, such as the current low-end and low-end machines of OPPO and Xiaomi. All of them are equipped with MediaTek chips to further compress the performance of Qualcomm mobile phone chip shipments.
As for AMD, although it has performed well in the processor and data center fields, it is subject to the sluggish sales of GPU channel products, blockchain and semi-customized products, which has dragged down revenue performance.
Although Xilinx is a US chip manufacturer, due to the wide range of customers, in addition to the slightly affected data center applications, other industries such as industry, Netcom, and automotive have grown, and Marvell is also affected. Benefiting from the increased demand in Netcom's market, Xilinx has paid out the transcripts of revenue growth against the trend while the performance of many US chip makers is not good.
The performances of Taiwanese IC design companies, Novatek and Realtek, were outstanding in the second quarter. Due to the TDDI solution, the company was favored by the landline mobile phone industry, and the demand for AMOLED driver chips was strong. Compared with the same period last year, it grew by about 18%. The company has benefited from PC, consumer and Netcom products, and its revenue has increased by 30.2% compared with the same period last year.
As for Synaptics' poor performance in the mobile market, it has dragged down overall revenue, while Dialog has grown in custom mixed-signal, connectivity and audio applications, allowing Dialog's overall revenue. Return to the tenth place.
Looking forward to the third quarter, as Sino-US trade frictions continue and there is no sign of mitigation, even in the traditional peak season of entering the semiconductor market, whether the major chip designers can maintain their growth performance still depends on whether the sales strategy can disperse China and the United States. Market risk brought by trade friction.