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US-China trade impacts global top ten IC design companies, the Revenues of top five all falling YoY
Time: 2019-09-05  |    |  16

The global top ten IC design companies for 2Q19 ranked by revenue have just been released by TrendForce, in which we see revenues of the top five all falling YoY. This was due to the US-China trade war, mounting inventory levels along the supply chain and less-than-satisfactory global demand for consumer electronics, including smartphones, tablets, notebooks, LCDs, TVs, servers etc. NVIDIA registered the largest decline among the five: 20.1%. This is also the first time in three years that Nvidia's seen YoY revenue declines for three consecutive quarters. 

 

TrendForce Analyst Chia-Yang, Yao says that weak Chinese demand, crippled by the US-China trade war and leading China's systems suppliers to reduce pull-ins for components, put the revenues of Broadcom  and Qualcomm, for whom China forms the main market, on a YoY slide in 2Q19. Qualcomm is facing intensifying competition from pace-gathering competitors Mediatek and China smartphone chip supplier UNISOC. Mediatek had been using the 12nm process for its mobile processor product line since 2018, greatly enhancing cost structure and adding more value to the product, whereas UNISOC implemented Cortex-A55 and A75 CPUs in its low-mid range processors, effectively presenting a wider choice of products for clients and subsequently placing pressure on Qualcomm, who now has a new competitor to deal with in the low-mid range market. 

 

As for the top ten, Nvidia saw the greatest decline. Despite having still enjoyed growths in automotive and professional visual applications and having actively managed the high inventory levels it originally faced, these were still not enough to prevent a consecutive three-quarter YoY fall in revenue, pulled down by the weight of the large declines seen in its graphic cards and datacenter products. However, Nvidia's declines in 2Q19 narrowed somewhat compared to 1Q19, and may continue to narrow in 3Q19 thanks to effectively reduced inventory levels.

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