MediaTek forecast to record 29% sales growth in 2016: IC Insights

MediaTek Inc. (聯發科), Taiwan’s leading integrated circuit designer, is expected to see its sales for 2016 rise 29 percent from a year earlier, the second-highest growth among the top 20 IC firms in the world, according to market advisory firm IC Insights.

In a statement posted on its website Tuesday, IC Insights said that MediaTek has benefited from an increase in shipments to Chinese smartphone brands such as Oppo and Vivo, which has boosted its sales for this year. Smartphone chips account for about 60 percent of MediaTek’s total revenue.

As a result, IC Insights said, the company is expected to generate US$8.61 billion in sales in 2016, up 29 percent from a year earlier, and a growth rate trailing only a 35-percent increase expected for U.S.-based graphics IC designer Nvidia Corp. among the top 20 IC firms.

Due to the strong sales growth, MediaTek is expected to become the 11th-largest IC company in the world in 2016, up two notches from a year earlier, while Nvidia is expected to rank as the 16th-largest, up from 18th, posting US$6.34 billion in sales, IC Insights said.

Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the largest contract chip maker in the world, could post US$29.32 billion in sales in 2016, up 11 percent from a year earlier, to retain the world No. 3 position, IC Insights said.

The advisory firm said that United Microelectronics Corp. (UMC, 聯電), the second-largest contract chip maker in Taiwan, is expected to post US$4.46 billion in sales in 2016, little changed from a year earlier, to remain the 20th-largest IC firm in the world.

In 2016, the top 20 IC firms are expected to generate US$282.13 billion in sales, up about 3 percent from 2015, IC Insights said.

U.S.-based Intel Corp. is expected to remain the largest IC firm in the world this year after posting US$56.31 billion in sales, up 8 percent from a year earlier, IC Insights said.

South Korea’s Samsung Electronics Co. is expected to come in second with an estimated US$43.54 billion in sales in 2016, up 4 percent from a year earlier, according to IC Insights.

U.S.-based Qualcomm Inc. is expected to post US$15.44 billion in sales in 2016, down 4 percent from a year earlier, but its global ranking is expected to rise to fourth place from the fifth position it held a year earlier, IC insights said.

Singapore-headquartered Broadcom Ltd. is expected to rank as the fifth-largest IC firm in the world in 2016, up from sixth place in 2015, after generating US$15.33 billion in sales, up 1 percent from a year earlier, the advisory firm said.

Source: Focus Taiwan News Channel

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.