Top 10 IC Design Companies After 2021 Surpassed $100 Billion in Revenue

Article by: TrendForce

According to TrendForce, the revenue of the top 10 global IC design companies reached $127.4 billion in 2021, up 48% year-on-year.

Due to vigorous stockpiling of various terminal applications leading to shortage of wafers in 2021, the global IC industry was severely undersupplied. This, coupled with soaring chip prices, pushed 2021 revenue for the world’s top ten IC design companies to $127.4 billion, up 48% year-on-year. other (YoY), according to TrendForce.

The market analyst further indicates three major deviations from the 2020 ranking. First, NVIDIA overtook Broadcom to take the second position. Second, Taiwanese companies Novatek and Realtek moved up to sixth and eighth place respectively. Initially ranked tenth, Dialog was replaced in this position by Himax after the acquisition of Dialog by the giant IDM Renesas.

Qualcomm continues its reign as the world’s No. The addition of diversified development in its RF and automotive chip businesses was key to a 51% increase in revenue. NVIDIA has implemented software and hardware integration, demonstrating its ambitions in creating a “complete computing platform”. Driven by year-over-year gaming graphics card and data center revenue growth of 64% and 59%, respectively, NVIDIA managed to climb to second place.

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Broadcom benefited from stable performance in sales of network chips, broadband communications chips, and storage and bridging chips, with revenue growing 18% year-on-year. AMD’s computing and graphics revenue grew 45% year-on-year due to strong Ryzen CPU and Radeon GPU sales and higher average selling price. Coupled with accelerating demand from cloud enterprises, annual revenue for AMD’s enterprise, embedded, and semi-custom divisions grew 113%, bringing total annual revenue growth to 68%.

When it comes to Taiwanese companies, MediaTek’s strategy of focusing on mobile phone SoCs has produced miraculous results. Benefiting from an increase in 5G penetration, sales performance of MediaTek’s mobile phone product portfolio jumped 93% and the company pledged to increase the proportion of high-end product portfolios , resulting in annual revenue growth of 61%. Novatek’s two main product lines, namely SoC and Display Driver IC, have both grown significantly. Due to improved product specifications, increased shipments and favorable price gains, revenue increased 79% year-on-year, the highest among the top 10.

Realtek was driven by strong demand for Netcom products and commercial laptops, while audio and Bluetooth chip performance remained fairly flat, delivering 43% year-on-year revenue growth. Himax joins the top 10 ranking for the first time in 2021. Due to the significant annual revenue growth of large and medium/small ICs of 65% and 87%, respectively, and the successful introduction driver ICs in automotive panels, total revenue exceeded $1.5 billion, up 74% year-on-year.

Looking forward to 2022, after AMD completes the acquisition of Xilinx, other players will fill out the rankings. From a broader perspective, increasing demand for high specification products such as high performance computing, Netcom, broadband transmission, servers, automotive and industrial applications will create good business opportunities for IC design companies and drive overall revenue growth.

However, end system manufacturers are faced with correcting component mismatch issues. Additionally, rising foundry costs, escalating geopolitical conflicts and rising inflation will all be detrimental to global economic growth and could impact an already weakened consumer electronics market. These are the challenges that IC design companies face in 2022 and by what means can the momentum of product sales be maintained within the limits of existing production capacity, boosting R&D efficiency and upgrading chip specifications, will become the main development focus in 2022.

About Raymond A. Bentley

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