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keyword:CY Yao19 result(s)

Press Releases
MediaTek Experienced More than 18% Revenue Decline for Two Consecutive Quarters, Reports TrendForce’s Latest Revenue Ranking of Top 10 IC Design Houses Worldwide for Third Quarter 2017

2017/11/16

Semiconductors

The revenue ranking for the third quarter of 2017 remained generally the same as the previous quarter, with Broadcom Limited, Qualcomm and NVIDIA respectively taking first, second and third place according to TrendForce’s latest ranking of the global top 10 fabless IC design houses Although MediaTek's third-quarter revenue and gross margins are close to the upper bound of financial forecast, the year-on-year revenue dropped by 188%, making it the only one in the list that had more than 18% revenue decline for two consecutive quarters TrendForce analyst CY Yao pointed out that, Qualcomm recorded a revenue growth in this third quarter while MediaTek experienced a drop in smartphone chip shipments, resulting in more than 18% revenue decline for two consecutive quarters Although MediaTek introduced P23 and P30 products in response to the demand in high-end smartphone market, Qualcomm is considerably competitive in price and models as its high-end product lines have applied 14nm process technology, together with Snapdragon 636 and Snapdragon 660 that have Kryo CPU built in In this third quarter, NVIDIA continued its revenue growth and ranked first in terms of year-on-year growth rate The growth was mainly brought by its game segments and data center NVIDIA game segments increased from USD 1,133 million in the second quarter of 2017 to USD 1,436 million in the third quarter, with a year-on-year growth rate of 318% and a quarterly growth rate of 267% Its data center recorded a third-quarter revenue of USD 472 million compared to USD 413 million in the previous quarter, a quarterly growth rate of 143% and a year-on-year growth rate of 1247% AMD had good performance as well in this quarter, with the average products price increasing thanks to shipments of the new generation of processors and graphics processing units The positive market feedback led to a net profit of 71 million US dollars in the third quarter, a new high of quarterly revenue and quarterly net profit since 2014 With an annual net loss of USD 497 million in 2016, AMD is expected to gradually recover from the gloom this year As for Broadcom and Qualcomm, Qualcomm’s Board of Directors has unanimously rejected Broadcom's acquisition proposal in an official statement But based on Broadcom's successful acquisitions in the past, it is believed that Broadcom will continue to negotiate with Qualcomm's Board of Directors and key shareholders, forcing the Board to agree with the acquisition proposal If so, Broadcom will likely come under antitrust scrutiny from the governments worldwide 

Press Releases
TrendForce Expects Taiwanese IC Design Houses to Be Under Greater Competitive Pressure If Broadcom’s Bid for Qualcomm Is Successful

2017/11/07

Semiconductors / Emerging Technologies

Fabless semiconductor giant Broadcom Limited (shortened here as Broadcom) announced on November 6 that the company is offering US$130 billion to acquire its rival Qualcomm Qualcomm’s official response is that the company board is currently reviewing the proposal This deal, if approved by Qualcomm’s board, represents another milestone for M&As in the global semiconductor sector as its value sets a new record high for the industry Once completed, TrendForce expects the deal will expand Broadcom’s presence in the automotive electronics market Furthermore, the joining of Broadcom and Qualcomm will impact the global foundry market and threaten the competitiveness of China's and Taiwan's IC industries in the future The most likely motive behind Broadcom’s bid for Qualcomm is the target’s rich product portfolio for the automotive application “Already a global leader in wireless communication solutions, Qualcomm is currently proceeding with the acquisition of NXP,” said CY Yao, TrendForce’s associate analyst covering the semiconductor sector “Once Qualcomm incorporates NXP, the company will become a major automotive chip supplier with the most comprehensive offerings” As a major supplier of automotive Ethernet chips, Broadcom has also considered that the automotive electronics market will be growing at a steady pace in the future Thus, Broadcom stands to gain significantly in this application area by taking over Qualcomm with the NXP deal intact Yao further pointed out that NXP, in addition to being the largest supplier of automotive semiconductor components before its takeover, also has a wide-ranging product lines for wired infrastructure Therefore, Qualcomm with NXP under its wings is highly complementary to Broadcom, which also has wired infrastructure making up a critical part of its revenue stream according to financial reports and deal-making records Also, five of NXP’s top 20 customers belong to the wired infrastructure segment  [1] The new fabless behemoth will have greater bargaining power with foundries and providers of IC testing and packaging services If Broadcom’s is successful in acquiring Qualcomm, the global semiconductor sector will be affected in several respects First, the new entity that would emerge from this deal will have a much stronger position when negotiating prices with foundries and providers of IC testing and packaging services Once the deal goes through, the rest of the semiconductor sector will be looking closely at the respective relationships that the newly reorganized Broadcom has with TSMC and ASE Group [2] Taiwan’s IC design sector will face harder competition Led by MediaTek, Taiwan’s IC design sector has always performed well in areas related to consumer electronics However, many of these end product markets have now matured At the same time, the general growth momentum in the smartphone market is also gradually slowing down Other applications such as industrial IC components, automotive electronics and wired infrastructure are fields where Taiwan's design houses have not been particularly active As IC companies across world initiate M&As as a way to quickly capture different vertical markets, Taiwan's design houses have been left behind and in a weaker position The consolidated foreign IC companies, for example, have the resources to corner particular application markets and raise higher barriers against new market entrants [3] For China's IC design houses, the union of Broadcom and Qualcomm will be another major challenge that requires the support of government to overcome China’s IC industry has been very determined to quickly catch up to foreign competitors in recent years, and its influence across different segments of the global semiconductor market is also growing steadily Domestic companies such as NavInfo and Rockchip have recently entered the automotive electronics market with chips used in advanced drive assistance systems Their efforts again reflect the incredible ambitiousness of the China's IC suppliers However, the possible union between Broadcom and Qualcomm will pose a serious threat to new Chinese entrants to the automotive market If this deal has materialized, an important follow-up development will be whether the Chinese government is going take actions to defend its domestic automotive chip suppliers [4] Successful conclusion of this deal will change the competitive landscape of the semiconductor chip market  NXP still has several wafer fabs and plants for IC testing and packaging even after the company has agreed to be acquired by Qualcomm There is a likelihood that these facilities will not be sold off when Broadcom in turn takes over Qualcomm Under such scenario, Broadcom will become one of the largest semiconductor chip manufacturers, following Intel and Samsung While the deal could widen the lead distance between Broadcom and other major semiconductor companies, Broadcom’s past business practices suggest that the company tends to quickly dispose product divisions regarded as redundant as to boost its overall operational efficiency Therefore, the fate of the NXP facilities will affect the landscape of semiconductor market The outcome depends on whether Qualcomm will be able to maintain its deal with NXP even as it is being acquired by Broadcom, which will then decide to use or sell the facilities

Press Releases
Broadcom Limited Again Topped TrendForce’s Latest Revenue Ranking of Top 10 IC Design Houses Worldwide for Second Quarter

2017/08/16

Semiconductors / Telecommunications

Broadcom Limited, Qualcomm and NVIDIA respectively took first, second and third place in TrendForce’s latest ranking of the global top 10 fabless IC design houses for the second quarter of 2017 With MediaTek and Marvell as exceptions, the eight other design houses in the top 10 ranking posted year-on-year revenue growth With regard to the ranking, TrendForce analyst CY Yao pointed out the following: “Generally, the top 10 design houses did well revenue-wise in the second quarter Broadcom’s growth momentum is built on its ability to offer competitive and complete solutions for network infrastructure and data center applications At the same time, Broadcom is one of the major suppliers of automotive Ethernet chips Because of its successes in these markets, Broadcom remained the revenue leader in IC design industry in the second quarter” In terms of year-on-year growth, NVIDIA surged ahead of the other competitors in the ranking for the second quarter, registering an impressive rate of 567% Although NVIDIA did not perform particularly well in the gaming market during this three-month period, the company continues to lead in revenue growth in the data center and professional visualization markets MediaTek, on the other hand, is experiencing issues in developing a successful product strategy This challenge in turn has affected the company’s ability to compete in the smartphone market and caused its overall revenue performance to fall below expectations At the current stage of the competition between MediaTek and Qualcomm in the smartphone market, MediaTek has recently released P23, a highly cost competitive mobile SoC that has a pricing advantage in the high-end to mid-range market segments However, whether P23 can help to turn around the third-quarter revenue performance for MediaTek remains to be seen Qualcomm this year has also launched several Snapdragon chipsets (ie 660, 630 and 450) If these products are widely adopted by smartphone clients, then Qualcomm can expect a significant revenue boost for the third quarter Qualcomm’s mobile SoC portfolio is more complete compared with MediaTek’s Qualcomm’s Snapdragon 835 as a top-tier mobile SoC has been well received by the market since its release Furthermore, Qualcomm has also filled the gaps along the high-end to mid-range segments with new offerings For MediaTek, raising the gross margins for mobile products, keeping revenue up and retaining market share will be very challenging in the near future MediaTek’s P23 currently targets the high-end to mid-range segments of the smartphone market and has an edge in pricing Nonetheless, growth in the smartphone market is already quite limited Furthermore, the rival Qualcomm has a portfolio that covers all market segments In the low-end market segment, Chinese IC design houses such as Spreadtrum are now extremely active and have become serious contenders To retain its market share for lower-end mobile SoCs, MediaTek may have to lower its prices to a point where its gross margins and revenue performance are adversely affected Yao expects most of the top 10 IC design houses to register consecutive year-on-year revenue growth for this third quarter “Demand is still quite strong in the major vertical application markets, including network infrastructure, data centers and automotive electronics,” said Yao “Together, they will keep driving the industry’s revenue” As for the ranking, the third quarter will unlikely bring significant changes IC companies that focus on smartphone chipsets or display drivers will need to work harder for achieve revenue gains because their end markets are seeing limited growth Broadcom, NVIDIA, Xilinx and other companies that benefit from the steady expansions of certain vertical markets (eg network infrastructure), will continue to perform well revenue-wise In sum, the third-quarter revenue ranking will remain generally the same because the top 10 IC design houses do not overlap on many applications

Press Releases
Broadcom Dethroned Qualcomm as Top IC Design House Worldwide by Revenue for First Quarter, According to TrendForce

2017/05/15

Semiconductors

Nearly all companies listed on TrendForce’s revenue ranking of the global top 10 fabless IC design houses for the first quarter posted year-on-year growth Novatek was the sole exception and saw a slight dip in its revenue compared with the same period a year ago For IC companies, the growing sources of end-market demand for this year come from networking equipment, data centers, servers and automotive electronics Broadcom Limited, which is a major supplier of products related to network infrastructure and wireless communication, dethroned Qualcomm as the revenue leader for the first quarter of 2017 NVIDIA exhibited impressive growth recently and took third place by displacing MediaTek, which occupied that spot for quite a long period TrendForce analyst CY Yao pointed out Broadcom Limited, which was the resulting entity of Avago’s acquisition of Broadcom Corporation, has remained a dominant beneficiary of the worldwide market for network infrastructure The company’s revenue already surpassed Qualcomm’s by the fourth quarter of 2016 Yao added that Qualcomm has been fending off competition from HiSilicon and Spreadtrum as well as contending with the stalling growth of the smartphone market “As a subsidiary of the world’s third-largest smartphone brand Huawei, HiSilicon is now supplying mobile SoCs used in the majority of its parent company’s products,” said Yao “Also, Qualcomm’s chip business in the short term will have difficulty to return to making around US$4 billion a quarter on average” NVIDIA posted the largest revenue increase among the top ten design houses in the first quarter with a year-on-year growth rate reaching 603% In addition to data centers and gaming products as its main revenue sources, NVIDIA has also made gains in the automotive electronics market MediaTek, which was overtaken by NVIDIA and dropped to fourth place, faces the same problems as Qualcomm but is experiencing more severe impacts MediaTek’s revenue result for this first quarter was slightly positive On the other hand, the company has encountered a major setback with the sales of its Helio X30 Though designed for flagship smartphones, X30 has not been well received among major brand vendors The lack of interest in X30 could continue to adversely affect MediaTek’s revenue going into the second quarter Yao believes that if MediaTek is unable to make a turnaround soon, the company’s chance of returning to the third place of the ranking is going to be slim On the whole, most design houses in the ranking have been maintaining a healthy level of revenue growth Demand pertaining to networking equipment, data centers and servers are significant revenue drivers for major chip companies such as Broadcom Limited, NVIDIA and Xilinx Going forward, the majority of the companies in the top 10 ranking are expected to record revenue growth for this second quarter In the smartphone chip market, Qualcomm’s lead over MediaTek could widen as shipments of Qualcomm’s Snapdragon 835 expands

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