Why Fabless Semiconductor Firms Witnessing a Huge Growth in 2022?Defines Experts

Published  June 14, 2022   0
S Staff

AMD is likely to defeat Broadcom in terms of growth in revenue in the second half of this year

Of late, TrendForce, the market intelligence firm stated that in the Q1 2022, the amalgamated revenues/profits of the first ten fabless companies escalated to $39.43 billion, which showcases an overwhelming growth of 44 percent year on year. The report also added that in this category, Qualcomm retained the top spot, which is due to an impressive sales of its radio frequency (RF) modules and SOCs and also the automotive and IoT segment of the company witnessed a steady growth.

Another point to be noted is that the US based semiconductor firm AMD’s revenue saw a staggering growth of 71 percent during this Q1, which according to the experts happened due to the firm’s acquisition of American semiconductor manufacturing firm Xilinx. Apart from that, a month back AMD also purchased the California based software firm Pensando, which is showing a picture that AMD would defeat Broadcom in terms of growth in revenue in the second half of this year. 


Additionally, the report highlighted that the US based international technology firm Nvidia data center business accounted for 45.4 percent of its total revenue, which outstripped its gaming wing by 0.4 percent. In the meantime, Broadcom’s overall profit augmented as low as 26 percent, whereas the overall revenue of Nvidia witnessed $7.9 billion, a 53 percent rise year-on-year. AMD on the other hand, recorded an all-time higher revenue of $5.33 billion because of its sturdy sales of console SoC segments, enterprise, and embedded.  

As per a report of Techspot, Marvell's revenue saw an even larger increase of 72 percent YoY, owing to its acquisition of cloud and edge data center networking solutions provider Innovium late last year. The newly added fabless semiconductor firms in the top ten list are Cirrus Logic and Will Semiconductor. Cirrus Logic specializes in mixed-signal ICs and audio devices and its revenue witnessed 67 percent growth, which is due to its acquisition of Lion Semiconductor a year back. The Chinese firm Will Semiconductor saw a fall of Nine percent revenue Yo because of lockdowns and poor sales of smartphones in Shanghai.