MediaTek drops out of top 3 IC designer sales ranking

Taipei-Taiwan-based MediaTek Inc. dropped out of the world's top three integrated circuit designers in 2017 after posting a more than 10 percent decline in sales for the year, market information advisory firm IC Insights said Friday.

According to IC Insights, MediaTek's sales for 2017 totaled US$7.88 billion, down 11 percent from a year earlier, sending its global sales ranking among IC designers down one notch to fourth.

Analysts said the decline in MediaTek's sales in 2017 largely reflected a drop in revenue in the China market, where the company failed to meet specification requirements for smartphone chips for much of the year.

But MediaTek caught up in the fourth quarter and will not face the same disadvantage in 2018, analysts said.

Smartphone chips are the largest source of sales for MediaTek, accounting for about 60 percent of the total.

In 2017, U.S.-based designer Qualcomm Inc. retained the title as the world's largest IC designer with US$17.08 billion in sales, up 11 percent from a year earlier, IC Insights said.

Singapore-headquartered Broadcom Ltd. came in second, generating US$16.07 billion in sales in 2017, up 16 percent from a year earlier, ahead of U.S.-based Nvidia Corp. whose sales hit US$9.23 billion, up 44 percent from a year earlier, IC Insights said.

Nvidia's year-on-year growth in 2017 was the highest among the world's top 10 IC designers, helping push the company up two notches in the global sales rankings, the advisory firm said.

Apple came in fifth place behind MediaTek with US$6.66 billion in sales in 2017, up 3 percent from a year earlier, followed by U.S.-based Advanced Micro Devices Inc. (US$5.25 billion), China's HiSilicon Technologies Co. (US$4.72 billion), U.S.-based Xilinx Inc. (US$2.48 billion), Marvell Technology Group of the U.S. (US$2.39 billion), and China's Tsinghua Unigroup (US$2.05 billion).

IC Insights said the global IC design industry had total sales of US$100.61 billion in 2017, up 11 percent from a year earlier on the back of strong demand for memory chips.

The combined revenue posted by the top 10 designers rose 12 percent in 2017 from a year earlier to US$73.79 billion, accounting for more than 70 percent of the global total, IC Insights said.

Source: Focus Taiwan News Channel