IC Design


2022-03-30

Top 10 Taiwanese IC Design Company Revenue Top NT$900B in 2021 with MediaTek Contributing Lion’s Share

According to TrendForce research, in general, revenue of Taiwanese IC design companies grew significantly in 2021 with many hitting record highs due to active procurement of various terminal applications and the effect of product price inflation. These companies also performed well in terms of gross profit margin and profitability. The top 10 Taiwanese IC design companies generated revenue of NT$906.16 billion, or 54.3% YoY. In recent years, MediaTek has contributed more than half of the output value of Taiwan’s top ten IC design companies and has become a primary factor in the growth of Taiwan’s IC design industry.

Looking at Taiwan’s top three IC design companies, MediaTek, Novatek, and Realtek, in 1Q22, MediaTek benefited from the increase in 5G penetration and successive shipments of Dimensity 9000. A mobile phone release in March 2022 produced revenue growth which can offset lower demand for certain consumer products due to seasonal factors while the proportion of high-margin products in each revenue category will increase. Thus, annual revenue growth is expected to exceed 20% this year.

As for Novatek, although DDI and TDDI stocking has entered the off-season for traditional industries and demand for consumer electronics has weakened, overall market demand is still greater than supply and Commercial Notebook and Automotive demand remain strong. New products such as OLED FoD, OLED TDDI, FTDDI, and Mini LED will drive continued revenue stability. This year, Novatek will integrate TCON, PMIC, etc. for package sales, so that there is a relative price support, but the company must still dynamically adjust its product mix according to market changes.

In terms of Realtek, positive demand in the enterprise, industrial, and automotive sectors in 2H21 will continue to 1H22. With the pandemic slowing down, purchasing of commercial laptops and equipment has ramped up, wired and wireless network infrastructure is being upgraded, the automotive market continues to grow, and relevant products such as Wi-Fi 6, Wi-Fi 6E, 5G Ethernet, and the new LE Audio Bluetooth IC are being launched successively, which will continue to improve Realtek’s performance. On the consumer market side, demand in the PC and consumer electronics markets will return to normal in 2022 and the TWS Bluetooth headset market will face a price war, which will lead to a suppression of Realtek’s shipments in relevant sectors. Regarding foundry price hikes, some customers have reported that they cannot afford further price inflation and are still in the process of negotiating terms of cooperation. In addition, Realtek has been destocking in 1Q22 due to the customer yearend inventory audits and component mismatching.

Taking a comprehensive look at 2022, TrendForce believes that the benefits of price inflation will gradually fade and demand for consumer electronics will moderate but not weaken significantly, while sustained strong demand for industrial, automotive, and high-speed computing will test the product portfolio optimization and cost pass-through ability of IC design companies.

(Image credit: iStock)

2022-03-24

Amid Rising Volume and Pricing, Top 10 IC Design Companies Post 2021 Revenue Topping US$100 Billion

According to TrendForce research, due to the vigorous stocking of various terminal applications causing a shortage of wafers in 2021, the global IC industry was severely undersupplied. This, coupled with spiking chip prices, boosted the 2021 revenue of the global top ten IC design companies to US$127.4 billion, or 48% YoY.

TrendForce further indicates three major disparities from the 2020 ranking. First, NVIDIA surpassed Broadcom to take the second position. Second, Taiwanese companies Novatek and Realtek rose to sixth and eighth place, respectively. Originally ranked tenth, Dialog was replaced at this position by Himax after Dialog was acquired by IDM giant Renesas.

Qualcomm continues its reign as number one in the world, primarily due to 51% and 63% growth YoY in sales of mobile phone SoC (System on Chip) and IoT chips, respectively. The addition of diversified development in its RF and automotive chip businesses was key to a 51% increase in revenue. NVIDIA implemented the integration of software and hardware, demonstrating its ambitions in creating a “comprehensive computing platform.” Driven by the annual growth of gaming graphics card and data center revenue at 64% and 59%, respectively, NVIDIA successfully climbed to second place. Broadcom benefited from the stable sales performance of network chips, broadband communication chips, and storage and bridging chips, with revenue growing 18% YoY. AMD’s computer and graphics revenue grew by 45% YoY due to strong sales of the Ryzen CPU and Radeon GPU and rising average selling price. Coupled with accelerating demand from cloud companies, the annual revenue of AMD’s enterprise, embedded, and semi-customized divisions increased by 113%, driving annual growth of total revenue to 68%.

In terms of Taiwanese firms, MediaTek’s strategy of focusing on mobile phone SoC has produced miraculous results. Benefiting from an increase in 5G penetration, the sales performance of MediaTek’s mobile phone product portfolio surged by 93% and the company has committed to increasing the proportion of high-end product portfolios, resulting in 61% annual revenue growth. Novatek’s two major product lines of SoC and display driver IC have both grown significantly. Due to improved product specifications, increased shipments, and beneficial pricing gains, revenue grew by 79% YoY, the highest among the top ten. Realtek has been driven by strong demand for Netcom and commercial notebook products, while the performance of audio and Bluetooth chips remains quite stable, conferring an annual revenue growth of 43%. Himax joins the top ten ranking for the first time in 2021. Due to significant annual revenue growth in large-sized and medium/small-sized driver IC of 65% and 87%, respectively, and the successful introduction of driver IC into automotive panels, total revenue exceeded US$1.5 billion, or 74% YoY.

Looking forward to 2022, after AMD completes the acquisition of Xilinx, other players will fill out the rankings. In the broader picture, intensifying demand for high-specification products such as high-performance computing, Netcom, high-speed transmission, servers, automotive, and industrial applications will create good business opportunities for IC design companies and drive overall revenue growth. However, terminal system manufacturers face the correction of component mismatch issues. In addition, growing foundry costs, intensifying geopolitical conflicts, and rising inflation will all be detrimental to global economic growth and may impact an already weakened consumer electronics market. These are the challenges IC design companies face in 2022 and by what means can product sales momentum be maintained within existing production capacity, R&D efficacy strengthened, and chip specifications upgraded, will become the primary focus of development in 2022.

2022-02-16

Intel Kills Two Birds with One Stone as Tower Acquisition Strengthens Mature Process Platforms and Regional Production Capabilities, Says TrendForce

Intel officially confirmed on February 15 that it will acquire Israeli foundry Tower Semiconductor for nearly US$6 billion, and the deal will likely contribute to the growth of Intel’s foundry business if it reaches a successful conclusion, according to TrendForce’s latest investigations. Tower was 9th place in the global ranking of foundries by revenue for 4Q21 and operates a total of seven production sites across Israel, the US, and Japan. Tower’s foundry capacity in 12-inch wafer equivalents accounts for about 3% of the global total. The majority share of Tower’s foundry capacity is for 8-inch wafers, and Tower’s share of the global 8-inch wafer foundry capacity is around 6.2%. Regarding manufacturing process platforms, Tower offers nodes ranging from 0.8µm to 65nm. It has a diverse range of specialty process technologies for manufacturing products in relatively small quantities. Products that Tower has been contracted to manufacture are mostly RF-SOI components, PMICs, CMOS sensors, discretes, etc. As such, the Tower acquisition is expected to help Intel expand its presence in the smartphone, industrial equipment, and automotive electronics markets.

Although Intel undertook a series of business strategies to compete with TSMC and Samsung, IFS (Intel Foundry Services) has historically manufactured with platform technologies for processors such as CPUs and GPUs. Furthermore, competition still persists between Intel and certain foundry clients that require advanced processes below the 10nm node, such as AMD and Nvidia, which have long histories of developing server products, PC CPUs, GPUs, or other HPC-related chips. Intel’s preexisting competitive relationship with these companies may become a barrier to IFS’ future expansion because IFS will be relatively unlikely to attract them as customers.

Taking the aforementioned factors into account, TrendForce believes that the Tower acquisition will likely expand IFS’ business presence in the foundry industry through two considerations. First of all, the acquisition will help Intel both diversify its mature process technologies and expand its clientele. Thanks to advancements in communication technologies and an increase in demand for new energy vehicles, there has been a recent surge in demand for RF-SOI components and PMICs. Tower’s long-term focus on the diverse mature process technologies used to manufacture these products means it also possesses a long-term collaborative relationship with clients in such markets. By acquiring Tower, Intel is therefore able to address IFS’ limited foundry capabilities and limited clientele. The second consideration pertains to the indigenization of semiconductor manufacturing and supply allocations, which have become increasingly important issues in light of current geopolitical situations. As Tower operates fabs in Asia, EMEA, and North America, the acquisition is in line with Intel’s current strategic aim to reduce the disproportionate concentration of the foundry industry’s supply chain in Asia. As well, Intel holds long-term investments and operates fabs in both the US and Israel, so the Tower acquisition will give Intel more flexibility in allocating production capacities, thereby further mitigating risks of potential supply chain disruptions arising from geopolitical conflicts.

In addition to the aforementioned synergy derived from acquiring Tower, it should also be pointed out that Intel is set to welcome an upcoming partnership with Nuvoton. Tower’s three Japan-based fabs were previously operated under TowerJazz Panasonic Semiconductor, a joint venture created by Tower and Panasonic in 2014, with Tower and Panasonic each possessing 51% and 49% ownership, respectively. After Nuvoton acquired PSCS (Panasonic Semiconductor Solutions Co.) in 2020, Panasonic’s 49% ownership of the three fabs was subsequently transferred to Nuvoton. Following Intel’s Tower acquisition, Intel will now possess the 51% majority ownership of the fabs and jointly operate their production lines for industrial MCUs, automotive MCUs, and PMICs along with Nuvoton. Notably, these production lines also span the range of CIS, MCU, and MOSFET technologies previously developed by Panasonic.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

2021-12-20

Snatching at TSMC’s Production Capacity? TrendForce Discusses Motivation Behind Intel CEO Gelsinger’s Taiwan Visit

Intel has long dominated the x86 architecture based server and PC processor market through the IDM model. At the same time, it acts as a pioneer in the semiconductor industry’s process miniaturization according to Moore’s Law. Yet, in recent years, Intel has seen continued delays in the development of 10nm and 7nm technologies. At the same time, in the ARM architecture based SoC processor market, customers can continuously and steadily obtain higher performance, lower power consumption, and more cost efficient IC design and manufacturing services through the continuous technological breakthroughs of TSMC at 10/7/5nm or even 3nm, integrated with the TSMC-led Open Innovation Platform (OIP), process and design-technology co-optimization (DTCO), and 3DFabric advanced packaging services. In addition to Apple leading the world in releasing the most advanced AP-SoC mobile processors, AMD’s PC processor market share on the client side is gradually threatening Intel. At the same time, the supply stability of the AMD Graphic and Data Center also trumps Intel and Nvidia. Furthermore, Apple’s self-developed M1/M1 pro/M1 max processors built with TSMC’s 5nm technology have been a reason for Intel’s lost Macbook series orders in the past two years which, in turn, has encouraged more brand-named manufacturers to initiate Fabless development strategies.  Companies such as Microsoft, Amazon, Google, Facebook, and Alibaba have all put forward self-developed ARM architecture solutions.

In 2020, Intel continuously spoke publicly stating that the company’s long-term core development strategy is gradually shifting from the old CPU processor business to xPU data computing services and, after revealing plans to outsource a portion of their CPU business, discussed plans to partner with TSMC. According to TrendForce’s investigations, Intel’s earlier non-CPU products such as FPGA, ASIC, RFIC, PMIC and Wi-Fi have already been outsourced to TSMC, UMC or Samsung.  As of today, Intel has officially released orders for CPU products to TSMC. Discounting cooperation in existing product lines, the division of labor between Fabless and Foundry combined with TSMC-led OIP, DTCO and 3D Fabric services will provide Intel with a multitude of choices. In addition to maintaining their original IDM model, Intel can maintain a high-margin self-developed production line and appropriate capital investment while flexibly using TSMC’s production line to create additional diversified value and maintain a competitive advantage against competitors such as AMD.

(Image credit: Google)

2021-12-16

3Q21 Revenue of Global Top 10 IC Design (Fabless) Companies Reach US$33.7 billion, Four Taiwanese Companies Make List, Says TrendForce

The semicondustor market in 3Q21 is red hot with total revenue of the global top 10 IC design (fabless) companies reaching US$33.7 billion or 45% growth YoY, according to TrendForce’s latest investigations. In addition to the Taiwanese companies MediaTek, Novatek, and Realtek already on the list, Himax comes in at number ten, bringing the total number of Taiwanese companies on the top 10 list to 4.

Qualcomm has been buoyed by continuing robust demand for 5G mobile phones form major mobile phone manufacturers with further revenue growth from its processor and radio frequency front end (RFFE) departments. Qualcomm’s IoT department benefited from strong demand in the consumer electronics, edge networking, and industrial sectors, posting revenue growth of 66% YoY, highest among Qualcomm departments. In turn, this drove Qualcomm’s total 3Q21 revenue to US$7.7 billion, 56% growth YoY, and ranking first in the world.

Second ranked NVidia, is still benefiting from gaming graphics card and data center revenue as the annual revenue growth for these two primary product departments reached 53% and 48%, respectively. In addition, professional design visualization solutions only accounted for 8% of total revenue. However, due to enduringly strong demand for mining and customers actively deploying the RTX series of high-performance graphics cards, NVidia’s product department revenue grew 148% YoY with overall revenue increasing by 55% to US$6.6 billion.

Third ranked Broadcom’s main revenue stream came from their network chip, broadband communication chip and storage and bridge chip businesses. Driven by post-COVID hybrid working models, companies are accelerating migration to the cloud, increasing demand for Broadcom chips, and driving revenue growth to US$5.4 billion or 17% YoY. AMD’s Ryzen, Radeon, and EPYC series of products in the fields of games, data centers, and servers performed well, driving total revenue to US$4.3 billion, 54% growth YoY, and fifth place overall.

In terms of Taiwanese companies, MediaTek continues to expand its global 5G rollout and, benefiting from optimization of product portfolio composition, product line specification enhancement, increase in sales volume, increases in pricing, and other factors, revenue of MediaTek’s mobile phone product line increased 72% YoY. Annual revenue of other product lines also posted double digit growth with total revenue in the 3Q21 reaching US$4.7 billion or 43% YoY, a fourth place ranking. Novatek continues to focus on its two primary product lines of system-on-chip and panel driver chips. The proportion of its OLED panel driver chip shipments has increased, product ASP has risen, and shipments have been smooth with 3Q21 revenue reaching US$1.4 billion or 84% YoY. In addition, Realtek’s revenue surpassed Xilinx to take the eighth position due to higher priced Netcom chips in 3Q21. Himax also saw significant growth in its three main product lines of TVs, monitors, and notebooks due to large-size driver chips. Revenue from large-size driver chips increased 111% YoY, driving total revenue to exceed the US$400 million mark, a 75% increase, and enough to squeeze onto this year’s ranking.

Overall, 3Q21 revenue for major IC design (fabless) companies has generally reached historic levels. Rankings for the top 7 companies remained the same as in 2Q21 with change coming in ranks 8 to 10. Looking forward to 4Q21, TrendForce believes Taiwanese IC design (fabless) companies will generally lean conservative. In addition to the electronics industry moving into the traditional off-season, a slowing of demand for consumer applications and customer-end materials supply issues reducing procurement will make continued revenue growth a challenge. In addition to consumer electronic products, global industry leaders are focused on the positive development of server and data center products to maintain an expected revenue growth trend.

For more information on reports and market data from TrendForce’s Department of Semiconductor Research, please click here, or email Ms. Latte Chung from the Sales Department at lattechung@trendforce.com

  • Page 1
  • 3 page(s)
  • 12 result(s)