In the second quarter of 2023, the top 10 global integrated circuit (IC) design powerhouses experienced a remarkable surge in revenue, reaching a collective total of $38.1 billion, representing a substantial 12.5 percent quarterly increase.
This growth was fueled by an AI-driven inventory stocking frenzy across the supply chain, indicating a robust demand for IC designs, TrendForce said.
NVIDIA Claims the Throne:
NVIDIA has emerged as the leader in the IC design sector, surpassing Qualcomm and securing the top position. NVIDIA’s Q2 revenue witnessed a staggering 68.3 percent surge, totaling $11.33 billion, primarily driven by the global demand for generative AI and large language models from cloud service providers (CSPs), internet giants, and enterprises. NVIDIA’s data center revenue experienced an extraordinary 105 percent increase, propelled by shipments of advanced architecture HGX systems and InfinBand, showcasing the company’s prowess in the AI landscape.
Challenges for Qualcomm and Broadcom:
In contrast, Qualcomm faced a downturn in Q2 due to diminishing demand in the Android smartphone sector and pre-purchases of modems by Apple, resulting in a 9.7 percent decline in revenue, which stood at approximately $7.17 billion. Broadcom encountered challenges with revenue drops in server storage, broadband, and wireless, offsetting the gains from AI-ignited demand, resulting in a revenue figure similar to the previous quarter at around $6.9 billion.
Performance of Other Major Players:
AMD’s Q2 revenue stabilized at approximately $5.36 billion, with a downturn in gaming GPU sales and the embedded segment operations.
MediaTek experienced a resurgence, reaching a Q2 revenue of $3.2 billion, attributed to stabilizing components like TV SoCs and Wi-Fi, coupled with increasing shipments for mobile phones and smart platforms.
Marvell faced challenges, with a 1.4 percent decline in Q2 revenue, largely due to a decline in on-premise servers and fragile end-user demand.
Prospects for Q3:
Looking ahead to Q3, while inventory levels across companies are promising, a persistent end-user demand slump warrants caution. However, the proliferation of generative AI and large language models is anticipated to drive continued growth in Q3. TrendForce projects that the top 10 global IC design giants will sustain their double-digit ascent, potentially reaching record-breaking figures, fueled by the adoption of high-value AI offerings by CSPs, internet titans, and private firms.
