NVIDIA and AMD Revenues Soar More Than Other Chip Developers In 2020
A recent study by TrendForce states that the top 10 integrated circuit designers combined last year increased their revenues by 26.4%, mainly driven by increased demand for notebook computers and networking components. NVIDIA and AMD became the leaders in revenue growth, increasing it by 52.2 and 45%, respectively.
The TrendForce ranking considers the revenues of the ten largest companies in the industry that do not have their own production facilities. The leader was the American corporation Qualcomm, which increased it by 33.7% last year to $ 19.4 billion in terms of revenue. Renewed cooperation with Apple, increased demand for mobile devices in general, and US sanctions against Huawei contributed to the Last year.
Broadcom fell back to second place with 2.9% growth and $ 17.75 billion in revenue, driven by various factors. If in the first half of the year, Broadcom’s revenue was negatively affected by the trade war between the United States and China, then in the second half of the year, cooperation with Apple contributed to revenue growth.
NVIDIA managed to take third place in absolute terms of revenue ($ 15.4 billion), excluding the OEM segment and royalties. Still, in terms of growth rates, the American developer of graphics processors came in the first place, since last year it increased its revenue by 52.2 %. Of course, the addition of Mellanox contributed to this momentum in the second half of the year, but GPUs themselves were in good demand last year.
Although AMD is content with fifth place in terms of revenue ($ 9.76 billion), behind MediaTek, it can claim to be the second place (+ 45%) in terms of its growth last year. Progress has been seen in all market segments in which AMD products are present. Xilinx ranked sixth with negative revenue dynamics (‒5.6%); its business was negatively affected by US trade sanctions against China. Xilinx should become part of AMD in the foreseeable future, so their combined revenue could raise this union to the fourth position in the ranking.
According to the authors of the study, the lack of spare production capacity this year will cause an increase in the prices of components, which will provide a stable increase in the revenue of chip developers and their manufacturers.
