TrendForce: Q3 2023 Revenue of Top 10 IC Design Companies Grows 17.8%
TrendForce reports that Q3 2023 was a historic quarter for the world's leading IC design companies, with total revenue jumping 17.8% to a record $44.7 billion. This remarkable growth was driven by a strong inventory season for smartphones and laptops, as well as a rapid acceleration in shipments of generative AI chips and components.NVIDIA capitalized on the AI boom to emerge as a top performer in terms of revenue and market share. Notably, analog IC supplier Cirrus Logic overtook U.S.-based PMIC maker MPS to take 10th place, driven by strong demand for smartphone inventory.
NVIDIA's third-quarter revenue soared 45.7% to $16.5 billion, thanks to continued demand for generative AI and LLM. Its data center business, which accounts for nearly 80% of its revenue, was a key driver of this extraordinary growth.
Qualcomm's third-quarter revenue rose 2.8 percent sequentially to around $7.4 billion on the back of its newly launched flagship AP Snapdragon 8 Gen 3 and the release of new Android smartphones. However, NVIDIA's rapid growth eroded Qualcomm's market share to 16.5%. Broadcom's strategic focus on AI server-related products such as AI ASIC chips, high-end switches and network interface cards, coupled with seasonal wireless product inventories, managed to offset weak server storage connectivity and broadband demand. This strategic initiative resulted in revenue growth of 4.4 percent sequentially to $7.2 billion.
AMD's third quarter revenue increased 8.2 percent to $5.8 billion. This success was driven by widespread adoption of fourth-generation EPYC server CPUs by cloud and enterprise customers, as well as the favorable impact of seasonal laptop inventories. MediaTek's third quarter revenue grew 8.7 percent to $3.5 billion, driven by healthy restocking demand for smartphone APs, WiFi6 and mobile/notebook PMIC components, as well as inventory stabilization across branded customers.
Cirrus Logic dislodged MPS from the 10th position due to smartphone inventory replenishment.
Marvell also posted significant gains, with third quarter revenue of $1.4 billion, up 4.4 percent sequentially. This growth was driven by growing demand for generative AI from cloud customers and expansion in the data center business - despite declines in sectors such as enterprise networking and automotive. However, the outlook for some sectors remains mixed, with areas such as TV and internet still facing uncertainty, leading customers to be cautious. This led to revenue declines of 7.5% and 1.7% respectively for some IC design companies such as Lian Yong and Reynolds.
Weir Semiconductor benefited from the demand for Android smartphone parts and shook off past inventory adjustments to post a 42.3% revenue increase to $752 million in the third quarter. Cirrus Logic likewise capitalized on the trend of smartphone parts inventories, posting a sharp revenue increase of 51.7% to $481 million, edging MPS out of the top ten.
Conclusion
TrendForce expects the top 10 IC design companies to continue to grow in the fourth quarter. This optimistic outlook is supported by a gradual normalization of inventory levels and a mild seasonal rebound in the smartphone and notebook markets. Additionally, the surge in global LLMs extends beyond communications service providers, Internet companies and private companies to reach regional countries and SMBs, further fueling this positive revenue trend.
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