Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 25, with the rising risk of high inflation in the overall global economy and the correction of downstream inventories in the second half of 2022, IC designers are also more sensitive and real-time to market reversals than wafer industrialists. According to the TrendForce Jibang Consulting report, in addition to the weak overall consumption power of consumer terminals, there are also unfavorable factors such as the epidemic, corporate IT spending and the slowdown in demand from cloud service providers, all of which have affected the total revenue performance of the top 10 IC designers in the fourth quarter of 2022, with a month-on-month decline of 9.2%, or about $33.96 billion (CTOnews.com Note: currently about 234.324 billion yuan).

TrendForce Jibang Consulting said that due to the continuous revision of inventory in the overall supply chain, coupled with the impact of the traditional consumer off-season, except partly due to the introduction of new products, and supply chain inventory replenishment, the market demand is still weak, so TrendForce Jibang Consulting expects the top 10 IC design revenue to continue to decline in the first quarter of this year, but the month-on-month decline will be slightly convergent.

Weak terminal demand and inventory correction, the biggest impact on MediaTek's consumer market and customer inventory correction are the reasons affecting the decline in revenue of most IC designers in the fourth quarter. Revenue from Qualcomm smartphone and IoT products decreased by 22.6% and 16.2% respectively compared with the previous quarter, resulting in revenue shrinking to $7.89 billion (currently about RMB 54.441 billion) in the fourth quarter. It is down 20.3% from the previous month, and the total revenue still ranks first.

Broadcom ranked second this time, with revenue up 2.4% from a month earlier to about $7.1 billion (currently about 48.99 billion yuan), mainly supported by business revenue such as server storage applications, broadband and wireless networks, offsetting the impact of inventory revisions.

NVIDIA's fourth-quarter revenue reached $5.93 billion (currently about 40.917 billion yuan), down 2.7% from the previous two quarters, mainly supported by factors such as the launch of RTX 40 series high-end graphics cards and stable vehicle demand, and increased revenue in the gaming and automotive sectors, partly offsetting the recession in data centers and professional visualization (Professional Visualization) areas.

AMD's revenue increased by 0.6% month-on-month, thanks to the increased penetration of data center customer EPYC platform CPU and the acquisition of Xilinx to drive FPGA, DPU and other businesses, with overall revenue of US $5.6 billion (currently about RMB 38.64 billion).

MediaTek's main business relies on smartphones and other consumer product chips, so revenue is hit hardest, with revenue falling in all product areas, with smartphone-related revenue falling by about 30% month-on-month, with revenue of only $3.45 billion (currently about 23.805 billion yuan) in the fourth quarter, down 26.2% from the previous quarter.

The most obvious change from sixth to tenth this time is that Novatek squeezed out Ruiyu (Realtek) to seventh place. Lianyong's fourth-quarter revenue reached $715 million (currently about 4.934 billion yuan), an increase of 11.2% over the previous quarter, the industry with the largest growth in the fourth quarter, officially ending four consecutive seasons of revenue recession, showing that the panel industry entered inventory correction in the fourth quarter of 2021. It has reached a low water level by the end of the fourth quarter of last year, and began to restart the stock cycle. Therefore, Lianyong benefited from inventory replenishment of TV-related parts such as TV SoC, Tcon and LDDI, and revenue from SoC and driving IC increased by 2.1% and 16.1% respectively compared with the previous month. While other competitors were still in the low tide of inventory correction, Ruiyu was squeezed out to return to seventh place. In contrast, due to weak demand for PC and laptops and the loss of Ethernet orders, Ruiyu's revenue shrank to $690 million in the fourth quarter, down nearly 30% from the previous quarter.

It is also worth mentioning that Apple (AAPL), a big customer of Cirrus Logic, contributed more than 80% of its revenue, and even close to 90% during the peak shipping season, so revenue grew 9.3% month-on-month to $590 million (currently about 4.071 billion yuan) thanks to iPhone's new machine dividend in the fourth quarter. But it also means that fluctuations in demand for Apple's smartphones are the decisive factor affecting Sirui's revenue, especially in the first quarter, when smartphone shipments are off-season, Apple's new phone dividends fade, and revenue is likely to face a significant decline. Other companies, such as Marvell, had fourth-quarter revenue of $1.46 billion (currently about 10.074 billion yuan), down 4.8% from a month earlier, with the largest decline in revenue in storage server applications, while Will Semiconductor (Weir Semiconductor) benefited from demand for new aircraft from some Android camps, with revenue up 2.7% month-on-month to about $530 million (currently about 3.657 billion yuan).

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