Revenue ranking of the world's top ten IC design companies in Q2 2017: many are happy but few are sad

According to the latest statistics from TrendForce's TrendForce Industry Research Institute, the revenue and rankings of the world's top ten IC design companies in the second quarter of 2017 were released. Except for MediaTek and Marvell, whose revenue showed a decline, the other eight manufacturers all showed a growth trend, with Broadcom, Qualcomm and NVIDIA ranking the top three in revenue.

Yao Jiayang, an analyst at TrendForce, pointed out that the top ten IC design companies generally showed good growth in their second quarter revenue. Broadcom has a fairly complete solution in network communication infrastructure and data centers, and is also one of the main suppliers in the field of automotive Ethernet, so it has delivered a good report card and ranks first in the global IC design company revenue ranking.

In terms of revenue growth performance, Nvidia's annual revenue growth rate in the second quarter of 2017 reached 56.7%, with amazing growth momentum. Although Nvidia's performance in the gaming field in the second quarter was not very impressive, it played a leading role in data centers and professional visualization applications. In contrast, MediaTek was frustrated by problems with its existing product strategy, resulting in its performance in the smartphone market and overall revenue being lower than expected.


The market is concerned about the competition between Qualcomm and MediaTek. Although MediaTek's P23 processor has been introduced to the market, P23 is a cost-oriented product. With its price advantage, it has the opportunity to achieve good results in the mid-to-high-end market. However, whether it can achieve revenue growth in the third quarter remains to be seen. Qualcomm's previously launched Snapdragon 660, 630 and 450 processors, if introduced smoothly, are expected to bring certain benefits to the third quarter's revenue.

Looking at the product layout of Qualcomm and MediaTek in the smartphone market, Qualcomm's layout is more complete than MediaTek's. Snapdragon 835 has already performed very well in the market, and the connection between mid-to-high-end products is also quite smooth. MediaTek will face operational challenges including stabilizing or even increasing gross profit margins, revenue and smartphone market share.

MediaTek's P23 processor is currently targeting the mid-to-high-end market, and its price is competitive in the market. However, the growth momentum of the smartphone market is limited. In addition, Qualcomm has a complete product layout, and there are mainland chip manufacturers such as Spreadtrum in the low-end market. If they want to regain market share, their revenue and gross profit margin will inevitably be affected.

Yao Jiayang said that looking forward to the third quarter, most companies should still be able to maintain their growth trend, mainly because many vertical applications such as network communication infrastructure, data centers and automotive electronics have their own growth momentum. Under the premise that the application fields focused by major IC design companies are different, some IC design companies are limited by the growth momentum of markets such as smartphones or display applications, and their growth performance in the third quarter is expected to be relatively limited; Broadcom, Nvidia and Xilinx, etc., benefit from the stable growth of vertical applications such as network communication infrastructure, and their revenue should be able to maintain a certain performance. Overall, it is expected that the ranking order in the third quarter will not change much.

This article is reproduced from: Jiwei.com