TrendForce Consulting: The revenue decline of the world's top 10 IC designers widened to nearly 10% in the fourth quarter of 2022 and will continue to fall in the first quarter of this year
With the risk of high inflation in the global general economy rising, and the downstream inventory correction in the second half of 2022, IC designers are also more sensitive and real-time to market reversals than foundry manufacturers. TrendForce Consulting said that in addition to the overall weak consumption of consumer terminals, there are adverse factors such as the epidemic, enterprise IT spending and slowing demand for cloud service providers, which have impacted the total revenue performance of the top 10 IC designers in the fourth quarter of 2022, with a sequential decline of 9.2%, or about $33.96 billion.
TrendForce Consulting said that due to the continued correction of the overall supply chain inventory, coupled with the impact of traditional off-season consumption, in addition to some new products driven by buying, and supply chain inventory replenishment, market demand is still weak, so TrendForce consulting expects the top 10 IC design revenue in the first quarter of this year will continue to fall. But the month-on-month decline will moderate slightly.
Weak terminal demand and inventory correction, the top five players Mediatek was the most affected
The cooling of the consumer market and customer inventory correction are the reasons for the decline of most IC designers in the fourth quarter, Qualcomm (Qualcomm) smartphone and IoT two major product business revenue decreased by 22.6% and 16.2%, respectively, resulting in the fourth quarter revenue contraction to $7.89 billion, down 20.3%. Still ranked first in total revenue. Broadcom (Broadcom) ranked second this time, with revenue up 2.4% sequentially to about $7.10 billion, mainly supported by revenue from server storage applications, broadband and wireless networks, which offset the impact of inventory correction.
NVIDIA's revenue in the fourth quarter reached $5.93 billion, down 2.7% from the previous two quarters, which was significantly convergence, mainly due to the RTX 40 series high-end graphics card market, vehicle demand maintenance and other factors, and revenue in the game and vehicle field rose. Part of the offset is a decline in data centers and Professional Visualization. AMD's revenue increased 0.6% sequentially, benefiting from the increased CPU adoption penetration rate of EPYC platform among data center customers, and the acquisition of Xilinx to drive FPGA, DPU and other businesses, with overall revenue reaching $5.60 billion. And MediaTek's main business relies on smart phones and other consumer products chips, so the impact of the largest force on revenue, revenue in all product areas declined, and smartphone related business revenue fell about 30% of the highest, the fourth quarter revenue of only $3.45 billion, a decrease of 26.2%.
The most notable change in the sixth to tenth spots this time around was Novatek edging out Realtek to seventh place. Lianying fourth quarter revenue reached $715 million, an increase of 11.2%, the largest growth in the fourth quarter of the industry, officially ending the continuous four quarter revenue recession, show panel industry since the fourth quarter of 2021 into the inventory correction, to the end of the fourth quarter of last year has reached a low level, and began to restart the stock cycle, Therefore, Lianyong benefited from television-related parts such as TV SoC, Tcon, LDDI and other inventory replenishment, SoC and driver IC two business revenue increased by 2.1%, 16.1% respectively, while other competitors are still in the low tide of inventory correction, squeeze Realtek back to seventh place. In contrast, Realtek's revenue shrank to $690 million in the fourth quarter, down nearly 30% from the previous quarter, due to weak demand for PCS and laptops and loss of Ethernet orders.
It is also worth mentioning that Apple, as a large customer of Cirrus Logic, contributes more than 80% of revenue, and the shipping season is even close to 90%, so the fourth quarter benefited from the new iPhone dividend, and the revenue of Cirrus Logic increased by 9.3%, reaching $590 million. However, this also means that the fluctuation of demand for Apple's smart phones is the decisive key to the increase or decrease of Sirui Logic's revenue, especially the first quarter is the off-season of smart phone shipments, Apple's new machine dividend has faded, and revenue may face a more obvious recession. Other players such as Marvell reported fourth-quarter revenue of $1.46 billion, down 4.8 percent from the previous quarter, with storage server applications seeing the biggest decline in revenue. Will Semiconductor, on the other hand, benefited from the demand for new devices in some Android camps, and its revenue rose 2.7 percent sequentially to about $530 million.
Source: Jibang Consulting
