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NVIDIA and AMD Revenues Soar More Than Other Chip Developers In 2021
A recent TrendForce study shows that the top 10 integrated circuit designers combined last year increased their revenues by 26.4%, driven primarily by increased demand for notebook computers and networking components. NVIDIA and AMD became the leaders in terms of revenue growth, increasing it by 52.2 and 45%, respectively.
Image source: NVIDIA
The TrendForce ranking takes into account the revenues of the ten largest companies in the industry that do not have their own production facilities. In terms of revenue, the leader was the American corporation Qualcomm, which increased it by 33.7% last year to $ 19.4 billion. Renewed partnership with Apple, increased demand for mobile devices in general, and US sanctions against Huawei collectively boosted Qualcomm’s revenue growth last year.
Broadcom fell back to second place with 2.9% growth and $ 17.75 billion in revenue, influenced 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, the cooperation with Apple contributed to the growth in revenue.
Image source: TrendForce
NVIDIA managed to take the third place in absolute terms of revenue ($ 15.4 billion), excluding the OEM segment and royalties, but in terms of growth rates, the American developer of graphics processors came in first place, since last year it increased its revenue by 52.2 %. Of course, in the second half of the year, this dynamic was facilitated by the addition of Mellanox, but GPUs themselves were in good demand last year.
Although AMD is content with the fifth place in terms of revenue ($ 9.76 billion), behind MediaTek, it can claim the second place in terms of its growth last year (+ 45%). Progress was seen in all market segments where AMD products are present. Xilinx ranked sixth with negative revenue dynamics (‒5.6%), its business was negatively impacted 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 free production capacity this year will cause an increase in the prices of components, and this, in turn, will provide a stable increase in the revenue of chip developers, as well as their manufacturers.