Taiwan-based smartphone IC designer MediaTek Inc. remained the fifth largest IC designer in the world in the third quarter of this year, despite its sales being affected by weakening demand for Chinese smartphone brands, according to market information advisory firm TrendForce.
Data compiled by the Taipei-headquartered advisory firm showed MediaTek posted US$4.68 billion in sales in the July-September period, down 11.6 percent from the previous quarter, with a 12.5 percent share of the global IC design market, down from 13.4 percent in the second quarter, but remained the fifth largest IC designer.
In addition to falling demand from Chinese smartphone brands, TrendForce said MediaTek also saw inventory adjustments among its clients and a sequential decline in third quarter sales of semiconductors used in smartphones, other smart devices and power management solutions.
During the same period, drive IC designer Realtek Semiconductor Corp., another Taiwanese supplier, took seventh spot by posting US$979 million in sales, down 5.5 percent from a quarter earlier, with a 2.6 percent market share, unchanged from a quarter earlier, according to TrendForce.
Realtek felt the pinch from a decline in PCs sales which accounts for about 32 percent of its total revenue, while sales generated from wireless communications and automotive ICs remained stable, according to TrendForce
Novetek Microelectronics Corp., a Taiwan-based display drive IC designer, came in eighth after posting US$643 million in sales, to take a 1.7 percent share of the global market in the third quarter, TrendForce said, adding that the company suffered a 39.9 percent drop in sales from the second quarter, in the wake of a reduction in flat screen production amid weakening demand.
In the July-September period, the top 10 IC designers in the world posted an aggregate US$37.38 billion in sales, down 5.3 percent from a year earlier at a time when the global semiconductor industry faces inventory adjustments, TrendForce said.
U.S.-based IC designer Qualcomm Inc. remained the largest IC designer in the third quarter after generating US$9.90 billion in sales, up 5.6 percent from a quarter earlier, with a market share of 26.5 percent. The sequential increase resulted from sales growth in smartphone system on chips (SoCs) and 5G modem chips, TrendForce said.
Broadcom Inc., Nvidia Corp. and Advanced Micro Devices (AMD), also from the United States, were the second, third and fourth largest IC designer in the third quarter with a market share of 18.6 percent, 16.3 percent, and 14.9 percent, respectively, after posting US$6.94 billion, US$6.09 billion and US$5.57 billion in sales, TrendForce added.
Also in the three month period, U.S. headquartered Marvell Technology Inc., Cirrus Logic Inc. and Shanghai-based Will Semiconductor Co. came sixth, ninth and 10th, respectively, in the TrendForce rankings after taking a 4.1 percent, 1.4 percent and 1.4 percent market share with US$1.53 billion, US$541 million and US$513 million in sales.
TrendForce said as inventory adjustments continue due to high inflation and limited consumption, it is possible the IC design sector worldwide will post further declines in sales in the fourth quarter of this year and the first quarter of next year, while many IC designers have extended their reach to develop ICs used in data centers and automotive electronics to offset the impact from declining demand for consumer electronics gadgets.
Source: Focus Taiwan News Channel