Taiwan-based smartphone IC designer MediaTek Inc. reported a more than 16 percent decline in sales in April compared to the previous month. Market analysts attribute this drop to the global consumer electronics market experiencing slow season effects.
According to a report by TrendForce, MediaTek retained its position as the fifth-largest IC designer in 2023. However, its market share has decreased from the previous year.
In April, MediaTek’s consolidated sales fell to NT$42.03 billion (US$1.30 billion), marking the second lowest level for the year. Despite this, the figure increased by 48.25 percent from the previous year.
For the first four months of the year, MediaTek posted NT$175.49 billion in consolidated sales, reflecting a 41.52 percent year-on-year growth and indicating a global economic recovery.
MediaTek forecasts its sales for the second quarter to range between NT$121.4 billion and NT$133.5 billion. The company expects a 14-16 percent year-on-year increase in sales in U.S. dollar terms.
The company anticipates a rebound in shipments of smartphone ICs, smart device ICs, and power management ICs, with the smartphone IC line expected to record the highest growth in 2024.
Global smartphone shipments are projected to reach approximately 1.2 billion units in 2024, with MediaTek specializing in high-end flagship smartphone IC design, which is expected to drive sales growth.
Despite a decline in sales in 2023, TrendForce reports that MediaTek’s sales are likely to return to growth in 2024, with the adoption of its Dimensity 9300 chip by Chinese smartphone brands and an expected increase in high-end smartphone shipments.
In the IC designer ranking, Nvidia Corp. secured the top position in 2023, followed by Qualcomm Inc., Broadcom Inc., and Advanced Micro Devices, Inc. (AMD). Other companies in the top 10 include Marvell Technology Inc., Will Semiconductor Co., and Monolithic Power Systems Inc.
Overall, the global IC design market is showing dynamic shifts in market share and sales performance, with MediaTek poised for potential growth in the coming years.
