Participate in the annual laser event and know the new trend of industry development Top ten semiconductor manufacturers in the first half of 2020: HiSilicon is on the list for the first time

IC Insights, a well-known semiconductor market research company, announced the top ten semiconductor manufacturers in the first half of 2020, namely Intel, Samsung, TSMC, Hynix, Micron Technology, Broadcom, Qualcomm, NVIDIA, Texas Instruments, and HiSilicon.

It is worth mentioning that HiSilicon has become the only new company to enter the list, replacing the original position of Infineon.

Participate in the annual laser event and know the new trend of industry development Top ten semiconductor manufacturers in the first half of 2020: HiSilicon is on the list for the first time

(The data comes from IC Insights – OFweek Wei Ke network collation and tabulation)

(The data comes from IC Insights – OFweek Wei Ke network collation and tabulation)

The United States dominates the list, HiSilicon enters the top ten for the first time

From the perspective of the entire industry, the global semiconductor industry’s sales in the first half of 2020 increased by 5%, and the total sales of the top ten semiconductor manufacturers increased by 17% compared with the same period last year, which is three times that of the former. The top ten semiconductor manufacturers in the first half of 2020 had the highest sales of US$38.951 billion for Intel, and the manufacturer’s half-year sales must reach US$5.2 billion in order to enter the top ten threshold.

Judging from the year-on-year growth, although HiSilicon ranked tenth in sales, it jumped to the first position with a year-on-year growth rate of 49%. This is also the first time that HiSilicon has entered the ranking of the world’s top ten semiconductor manufacturers. It was followed by TSMC and Nvidia with 40% year-over-year growth. Broadcom and Texas Instruments experienced negative growth, -3% and -9% respectively.

From the perspective of the distribution of manufacturers, the United States has become the absolute main force. Six of the top ten manufacturers are headquartered in the United States, namely Intel, Micron, Broadcom, Qualcomm, Nvidia, and Texas Instruments. The semiconductor sales of the top ten manufacturers in the first half of 2020 were about 147.093 billion US dollars, while the total of 6 US manufacturers was about 78.307 billion US dollars, accounting for more than 50%.

From the point of view of enterprise model, IDM (International Integrated Component Manufacturer) model occupies half. It can be seen that several established semiconductor manufacturers that developed in the early stage all adopted this model, from design, manufacturing, packaging and testing to selling their own brand ICs. The most typical ones are Intel and Samsung, which have also become the top two on the list. TSMC has become the only manufacturer listed in the Foundry (foundry) model. Thanks to TSMC’s advanced 5nm process technology, it is almost rare to have a rival in chip manufacturing. The remaining four are Fabless (fabless chip suppliers without factory chip suppliers) model, these companies only need to be responsible for IC design and sales, the initial investment in this model is small, and the financial burden on the company It is not big, and it does not require excessive management costs in the future. It is also the most popular model for IC design companies with light assets.

Specifically, look at the performance of each manufacturer in the first half of 2020:

1. Intel

As a leader in the industry, data in Intel’s second-quarter financial report shows that in the two core businesses of data and PC, data-related business has become Intel’s main revenue component, which also means that PC-related business accounts for less and less. Specifically, Intel’s Q2 revenue was $19.728 billion, a year-on-year increase of 20%; net profit was $5.105 billion, a year-on-year increase of 22%; operating profit was $5.7 billion, a year-on-year increase of 23%; gross profit margin was 53% .3%, down 6.6% year-on-year. Among them, the total revenue of data-related business was approximately US$10.117 billion, and the revenue of PC-related business was US$9.5 billion.

Although Intel ranks first on the list, whether it is the “long-overdue” 10nm process, or the recent second-quarter financial report that clearly mentioned that the release time of the 7nm processor will be delayed by 6 months, it seems that All are showing that this old technology company in 1968 has encountered a lot of crisis in the chip manufacturing process.

Intel is the first processor manufacturer in the market to apply the 14nm process and the second-generation 3D transistor technology. In the follow-up, it only relies on the continuously optimized 14nm process and the continuously optimized and renamed micro-architecture to advance the desktop-class Core series from the sixth generation to The tenth generation, and the original plan to enter 10nm in 2015 bounced. The second delay occurred in 2018. Intel announced that the 10nm process yield and frequency performance were not ideal enough to be mass-produced, and it planned to split the 10nm process into three generations, 10nm, 10nm+ and 10nm++, in 2019, 2020, and 10nm, respectively. Launch in 2021. At the same time, TSMC has begun to actively prepare for large-scale commercial production of the 7nm process. Since then, Intel has also fallen on the road to chip technology. Although Intel’s advantages in processor AI performance and computing power are very obvious, looking back, ARM, AMD and other players are closely behind, and Intel is under great pressure to keep the first throne.

2. Samsung

In the first half of 2020, Samsung Electronics’ revenue reached 108 trillion won, and its net profit was 14.6 trillion won, a year-on-year increase of 13.1%. In the case of a decline in overall revenue, Samsung’s net profit is still growing positively. The biggest reason is the strong performance of Samsung’s semiconductor division.

Data shows that Samsung’s semiconductor sector contributed more than 67% of its profits, especially in the domestic mobile phone market, Samsung’s flash memory chips, AMOLED screens, 108 million pixel CMOS chips, etc., are highly favored by domestic mobile phone manufacturers.

Specifically, due to the impact of the epidemic, the decline in demand for mobile devices has led to a decline in NAND flash shipments. However, the expansion of the cloud application market related to remote work and online education has led to an increase in demand for data centers and personal computers. Samsung’s DRAM memory business also Therefore improved. It is worth mentioning that Samsung has increased its R&D investment in the semiconductor business in the second quarter, such as advanced 5nm process production lines.

Of course, as the epidemic is under control and the smartphone market recovers, Samsung Electronics’ smartphone business will also drive sales growth in the mobile division as new products become more intensive.

3. TSMC

In the past two years, TSMC’s turnover has grown rapidly. According to TSMC’s financial report for the second quarter of 2020, the company achieved revenue of NT$310.7 billion (about RMB 73.82 billion), a year-on-year increase of 28.9%; net profit was NT$120.82 billion (approximately RMB 28.7 billion), an increase of 81% year-on-year, exceeding market expectations.

From the perspective of revenue composition, in addition to the 5nm process revenue that has not yet been disclosed, 7nm and 16nm have become the main sources of corporate revenue, of which 7nm process shipments accounted for 36% of TSMC’s wafer sales in the second quarter; 16nm process shipments accounted for 18% of full quarter wafer sales. Overall advanced process (including 16nm and higher) revenue reached 54% of the full quarter wafer sales.

On May 15 this year, the United States restricted the upgrade of Huawei, which led to TSMC having to use full power to urgently stock up on Huawei’s 5nm chips. At the same time, it also received orders from other chip manufacturers such as Apple and Qualcomm. period. But in any case, Huawei can contribute 14% of TSMC’s revenue every year, second only to the largest customer Apple, and it is definitely a customer that TSMC is not willing to give up easily.

4. Hynix

In its latest financial report, Hynix said that thanks to the steady demand and price of memory chips, its second-quarter net profit more than doubled to 1.264 trillion won from 537.03 billion won in the same period last year. (about 1.06 billion US dollars), exceeding market expectations.

Similar to Samsung’s situation, Hynix was also helped by strong demand for memory chips used in data servers during the pandemic, offsetting weaker demand for chips in mobile devices. For DRAM (Dynamic Random Access Memory), prices remained stable despite lower demand for mobile devices. As SK hynix managed to ramp up sales of server and graphics products, DRAM shipments and average selling prices rose 2 percent and 15 percent, respectively, from the previous quarter. Similarly, the uncertainty in the second half of the year still exists, and the recovery of consumer Electronic products such as 5G mobile phones and smartphones will promote the growth of component demand.

5. Micron

Micron’s SSD revenue hit a record high in the first half of the year, and continued price growth for DRAM and NAND also led to strong sales. “We are bringing the industry’s most advanced DRAM technology into production, supported by record solid-state drive revenue this quarter,” said Sanjay Mehrotra, Micron’s president and CEO. , delivered more than 75% of NAND sales as a high-value solution. The growth momentum of our product portfolio puts us in a very strong position to capitalize on long-term growth in our end markets.”

Data in the third quarter showed that Micron’s market demand from servers, PCs, and mobile phones increased month-on-month, but only the embedded segment’s revenue declined due to the impact of the automotive market. Micron expects products such as mobile phones and consumer electronics to resume growth in the second half of the year, with data center demand remaining healthy. Micron expects revenue to grow by around 10% sequentially next quarter, and gross margins to improve further.

6. Broadcom

In the first half of this year, the global health incident had a knock-on effect on the global economy and brought a lot of shocks to the global chip market. It was also a difficult first half for Broadcom.

Specifically, Broadcom’s second-quarter net revenue was $5.742 billion, down from $5.858 billion in the previous quarter, but up 4% from $5.517 billion in the same period last year, in line with market expectations. Broadcom’s second-quarter net profit was $563 million, or $1.17 per diluted share, compared with $385 million, or $0.74 per diluted share, in the previous quarter; Net income for the same period last year was $691 million, or $1.64 per diluted share.

While Broadcom’s second-quarter net revenue rose 4% year over year, its semiconductor revenue fell 2% year over year. And this phenomenon has been particularly evident in recent years. As Broadcom’s main business, semiconductors account for more than 70% of its revenue. Today, semiconductor growth is weak, and even declined in the new quarter. It is expected that Broadcom’s total revenue will be affected in the future. make a big impact.

7. Qualcomm

In the 5G era, Qualcomm should be the most outstanding among many chip manufacturers, but according to the Q2 quarter (Qualcomm’s third fiscal quarter) financial report released by Qualcomm, its quarterly shipments of MSM (Mobile Station Modem) chips were 1.29%. 100 million, down 17% year-on-year; patent licensing revenue was US$1.099 billion, only one-sixth of the same period last year; net profit fell 61% year-on-year to only US$845 million, very “tragic” .

It also recently broke the news that more than 400 vulnerable vulnerabilities were found in Qualcomm DSP chips during a security review. In the technology survey, called “Achilles,” the checkpoint group found in tests that the vulnerabilities could have the following effects on users’ phones: turning your phone into a perfect spying tool without the need for Any user operation can easily access private information including photos, videos, call recordings, real-time language, GPS and location data from the mobile phone; make the mobile phone continue to be unresponsive, and make all information stored on the mobile phone permanently unavailable; Malware and other malicious code activity found.

You must know that Qualcomm’s DSP chips account for more than 40% of the mobile phone market, and its customers include almost all mainstream brands such as Samsung, LG, Xiaomi, OnePlus, OPPO, VIVO, etc., involving more than 1 billion mobile phones. This incident may become the largest cyber security incident in the mobile phone market in recent years, or have a certain impact on Qualcomm’s follow-up revenue.

8. Nvidia

Nvidia will announce its results for the second quarter of fiscal 2021 on August 19, but according to previous expectations, the emergence of global public health events has made data centers driven by vertical industry growth and super-large demand. Nvidia may take this advantage. Post a nice financial report.

Nvidia has beaten revenue estimates in 17 of the past 19 quarters. Analysts agree that Nvidia’s second-quarter revenue performance should be no surprise. Nvidia’s revenue in the second quarter of fiscal 2020 is expected to be $2.579 billion.

The main reason for the expected increase is the good performance in the data center in the first quarter, with revenue of $1.14 billion, accounting for 37% of total revenue, and an increase of 80% year-on-year. The latest data shows that peers Intel and AMD have both increased their business in this area. Although this does not guarantee that Nvidia will release similar growth figures, it at least shows that the business market is developing well.

9. Texas Instruments

In the latest financial report released by Texas Instruments, revenue in the second quarter was US$3.239 billion, down 12% from US$3.668 billion in the same period last year; net profit was US$1.380 billion, compared with US$1.305 billion in the same period last year. US dollars increased by 6%; gross profit was $2.082 billion, down from $2.360 billion in the same period last year; operating profit was $1.228 billion, down 18% from $1.506 billion in the same period last year.

Texas Instruments expects revenue of $3.26 billion to $3.54 billion in the third quarter of fiscal 2020 and earnings per share of $1.14 to $1.34, both beating analyst expectations. According to data provided by Yahoo Finance Channel, 26 analysts had expected Texas Instruments third-quarter earnings per share to reach 0.99 US dollars, revenue will reach 3.09 billion US dollars.

Regarding the sharp decline in revenue, Rich Templeton, chairman, president and CEO of Texas Instruments, said in the financial report that revenue fell by 12% year-on-year, mainly due to the weakening of the automotive market, which affected the demand for related semiconductor devices.

10. Hisilicon

The chips developed by HiSilicon are mainly used for Huawei’s communication equipment and smartphones. In recent years, it has also begun to sell chips to the outside world, and has a dominant market share in the domestic video surveillance and TV chip market, which has promoted the rapid growth of Huawei HiSilicon’s revenue. The main driving force is to rely on Huawei mobile phones.

In 2018, HiSilicon ranked 15th among global semiconductor manufacturers, and it officially entered the top ten this year, with a very fast rise. As we all know, in the first quarter of 2020, China was seriously affected by the epidemic, and the mainland’s smartphone shipments declined sharply, and the smartphone processor shipments dropped sharply by 44.5% compared with the first quarter of 2019. However, HiSilicon became the only major brand in the Chinese market whose shipments did not decline year-on-year in the first quarter, with 22.21 million units shipped, basically the same as the 22.17 million units in the first quarter of 2019. At the same time, it also surpassed Qualcomm for the first time, and officially became the mobile phone processor brand with the largest shipment in the Chinese market.

Now that HiSilicon has become Huawei’s core competitiveness, the world’s first integrated 5G SoC launched by HiSilicon in the 5G era has the performance of Qualcomm’s Snapdragon chip. It also makes American companies feel the strength of the rise of Chinese companies. One of the reasons why the US is trying to limit the development of Huawei’s chips.

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