Artificial Intelligence is increasingly becoming the central axis around which global IC design vendors are shaping their strategies.
TrendForce’s report for Q1 2025 underlines how the AI boom — not just in data centers but across edge devices — is reshaping product roadmaps, partnerships, and revenue models in the IC design industry, which recorded an all-time high of US$77.4 billion in revenue, up 6 percent QoQ.
NVIDIA: AI Dominance Through Platform Innovation
NVIDIA continues to lead with its aggressive AI-centric roadmap. Its Blackwell platform, designed to power next-gen AI workloads, pushed Q1 revenue to $42.3 billion — a 12 percent QoQ and 72 percent YoY rise. Despite export-related setbacks with its H20 chip, NVIDIA is strategically transitioning to higher-margin AI GPUs, ensuring sustained leadership in AI compute infrastructure. The company is also expanding its software ecosystem, cementing customer lock-in and raising entry barriers for rivals.
AMD: Building an AI Compute Rival to NVIDIA
AMD’s AI trajectory is defined by competitive positioning against NVIDIA. While its Q1 revenue dipped 3 percent QoQ, the 36 percent YoY rise signals growing AI relevance. AMD is set to mass-produce its MI350 AI accelerators later in 2025 and plans to launch the MI400 in 2026. These developments show AMD is investing heavily to become a primary alternative to NVIDIA in enterprise AI and hyperscaler markets.
Broadcom & Marvell: Betting on AI Infrastructure
AI server interconnects are emerging as a high-value niche, with Broadcom and Marvell doubling down on custom silicon and optics. Broadcom’s record $8.34 billion in chip revenue owes much to its 102.4 Tbps co-packaged optics switch and bespoke AI ASIC deals — positioning it as a critical AI enabler alongside NVIDIA. Marvell, too, posted solid revenue of $1.969 billion with 9 percent QoQ growth, driven by demand for custom AI chips and optical interconnects required for data center scalability.
Qualcomm: Shifting from Mobile to AI-First Strategy
As smartphone chip growth plateaus and Apple’s in-house silicon efforts loom, Qualcomm is actively repositioning around AI. With $9.47 billion in Q1 revenue, the company is targeting AI PCs, automotive, and IoT segments — areas with longer AI adoption curves and potential for diversification beyond handsets.
MediaTek & Realtek: Riding AI Edge Devices
MediaTek, with $4.66 billion in Q1 revenue, is leveraging demand from Chinese OEMs to push AI-capable SoCs like Dimensity 9400+, while raising ASPs through performance enhancements. Realtek showed standout growth (+31 percent QoQ) as Wi-Fi 7 and automotive Ethernet adoption surged — driven by the increasing connectivity demands of AI-enabled edge systems.
Tier-2 Vendors: AI Creates Niche Opportunities
Smaller vendors like MPS, OmniVision, and Novatek are finding tailored roles in the AI wave. MPS, for instance, hit record revenue (~$638 million) due to its power management ICs for AI compute. OmniVision is capitalizing on camera-based driver assistance systems, while Novatek is benefiting from early AI device stocking ahead of tariffs.
Across the IC design landscape, AI is no longer just a growth lever — it is a strategic imperative. From general-purpose GPUs and custom ASICs to high-speed interconnects and edge AI chipsets, vendors are racing to carve out niches in the expanding AI value chain. The winners will be those who can align product innovation with AI workloads’ evolving needs — whether in data centers, personal devices, or vehicles.
TelecomLead.com News Desk
