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Strong Automotive Performance Helps GlobalFoundries Limit FY2023 Revenue Fall to 9% YoY

  • Automotive segment revenue’s 3x growth limits overall revenue decline.
  • Inventory correction to continue in H1 2024, demand to recover from H2 2024.
  • Full-year 2024 CapEx to be 60% lower than that in 2023.
  • Smart mobile devices, aerospace and defense, and automotive to perform better in 2024.

GlobalFoundries’ full-year 2023 revenue declined 9% YoY to reach $7.4 billion, primarily due to weak demand for lower-end consumer and home electronics along with global macroeconomic factors and elevated inventory. The automotive segment saw a record 3x YoY rise in revenue during the period to reach $1.1 billion, which helped limit the decline in the overall revenue.

On the competition and differentiation that GlobalFoundries offers:

CEO Thomas Caulfield: “GlobalFoundries would like to be known as a single source differentiated business. The single-digit nanometer may be accelerating in some of the FinFET businesses but at the same time, GlobalFoundries has been accelerating the deployment of bringing new technologies to its existing FAB facility so that it can easily mix that capability.”

Ashwath Rao’s analyst take: GlobalFoundries is positioned well outside the crosshairs of global geopolitics and has faced minimal damage from the export controls due to its strategic pivot to move away from leading-edge chips five years ago. GlobalFoundries has been focussing on the development and production of chips in specialty applications including 5G smartphones, RF wireless infrastructure, electric vehicles, power grids, and industrial IoT. The penetration of these differentiated technologies is expected to increase significantly enabling GlobalFoundries to capture a significant portion of the market share. GF’s single source nature of business and focus on long-term agreements to help increase market share.

On the Smartphone and IoT market:

Parv Sharma’s analyst take: There will be a slow recovery in Android volumes in 2024 as the excess finished goods inventory, which was a drag on the market throughout 2023, will allow an inflow of new models. Smartphone AP/SoC shipments are set to grow in the low-single digits in 2024. Further, the demand for global cellular IoT module shipments is expected to recover by H2 2024, with substantial growth predicted for 2025, coinciding with the mass adoption of 5G.

On government funding and benefits:

CEO Thomas Caulfield: Government programs are lining nicely with a long-term strategy to share and grow the business for the medium to longer term. GlobalFoundries will play a significant role in the US with the ambition to create more semiconductor manufacturing in the US in addition to creating a more resilient global footprint.

Ashwath Rao’s analyst take: The addition of scaled GaN manufacturing into the Fab’s capabilities will further boost GF’s leadership competences in making chips for RF semiconductor technology and high-power applications. The US government is stepping up support for the local IC manufacturing sector to revive semiconductor manufacturing for mission-critical security systems, which it sees as a key requirement for future economic growth. Further, US government accreditation as a trusted supplier and funding under the CHIPS Act, and GlobalFoundries’ focus on increasing the foundry portion in the aerospace and defense segment along with new design wins will drive revenue growth in the long-term.

A chart showing GlobalFoundries Revenue, Gross Margin & Operating Margin - Q1 2021 to Q4 2023

Results Summary:

Revenue Highlights:

  • Increased inventory levels in smart mobile devices, communication infrastructure and data center, and lower end of consumer electronics end markets dragged revenue down by 9% YoY in 2023.
  • Business remix towards the premium tier of the handset market and content growth in RF and audio products limited the decline.
  • Shipped 2.2 million wafers in 2023.
  • Two-thirds of revenue in 2023 came from single-source agreements with customers.

Automotive Revenue Tripled in 2023:

  • The automotive segment saw the strongest growth of 3x YoY rise driven by healthy growth in volumes, ASP and mix dynamics as semiconductor content and features increased across the vehicle architecture.
  • Further ramp-up of processing, sensing and infrastructure applications helped boost revenue growth.
  • Growth in automotive end-market revenue is expected to continue in 2024 despite demand moderation in the industry.

Gross Margin:

  • Full year gross margin increased by 70 bps as compared to 2022 primarily due to the successful resolution of adjustments to customers’ near-term volume requirements and associated underutilization payments.

Long-term Agreements:

  • Extended manufacturing partnership with Infineon through 2030 with focus on 40nm automotive microcontrollers, power management and connectivity solutions.
  • GlobalFoundries will continue to expand automotive product offerings and support the development of critical sensing, processing and safety features for the automotive industry.
  • Awarded a 10-year contract by the US Defense Department for the supply of secure semiconductors for critical applications.

Q1 2024 Guidance

Lower revenue guidance of $1.5 billion-$1.54 billion compared to Q4 2023 as customers manage down their inventory. Quarterly revenue is expected to grow sequentially throughout 2024. Short-term inventory correction in the IoT end market is expected.

CapEx:

Full-year 2023 CapEx was at $1.8 billion. Meanwhile, full-year 2024 CapEx is expected to be around $700 million, down 60% from that in 2023. Most of the CapEx utilization will be for tooling and increasing capacity to satisfy LTA demand and migrating additional capabilities into other fabs.

2024 Outlook

  • Inventory reductions driven by channels to continue in H1 2024. Demand dynamics will improve in H2 2024 once the macroeconomic landscape stabilizes.
  • Utilization is expected to decline to the low- to mid-70s in Q1 2024 before bouncing back in subsequent quarters.
  • Industrial IoT segment customers to focus on channel inventory depletion in 2024.
  • Priority to remix capacity to other durable end-markets and accelerate technology transfers and customer qualifications in 2024.
  • Smart mobile devices, automotive, aerospace and defense to perform better in 2024.
  • 3 million wafers expected to be shipped in 2024.

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Qualcomm Posts Higher Than Guided Q4 Revenues Driven by Smartphones, Automotive

  • Handset revenues were driven by flagship chipsets and Chinese OEMs’ growth.
  • IoT inventory levels were still high. They are expected to normalize by Q2 2024.
  • Auto continued to gain momentum with silicon design wins and a lengthening pipeline.
  • Multiple key licenses got extensions, including with Apple, Samsung and Chinese smartphone OEMs.

Driven by the handset and automotive segments, Qualcomm’s revenues grew 5% annually and 15% sequentially in Q4 2023, above the high end of the guidance. Handset revenues were driven by flagship chipsets Snapdragon 8 Gen 3 and 8 Gen 2’s design wins and demand from Chinese smartphone OEMs. The automotive segment was driven by increased content in new vehicles along with smartphone digital platforms. Overall, the inventory came down to normal levels with the demand from smartphones coming back on track. IoT inventory levels were still high in the industrial and edge networking segments, with some stabilization on the consumer side. Qualcomm expects the IoT inventory to normalize by Q2 2024.

Device AI adoption at edge

CEO Cristiano Amon: “It’s not only unique to the Galaxy S24 that has a number of use cases running GenAI on the device. But we’ll also see that happening with some of our other customers from China launching a number of models. So, I think we have a large number now of models being ported into our hardware for gen AI. I think we’re starting to see the beginning of new use cases. Reviews have been positive, and we are happy with we’ve seen the results following the launch.”
Tarun Pathak’s analyst take: The share of Generative AI (GenAI) smartphones in the overall smartphone market will be in single digits in 2023. But those numbers will not accurately reflect the amount of excitement and marketing hyperbole we are expecting to see. We expect GenAI smartphones to hit an inflection point in 2026 as the devices permeate through the broader price segments. The coming year will be pivotal for GenAI smartphones with preliminary data projecting their shipments to reach over 100 million units in 2024, according to an upcoming report, ‘GenAI Smartphone Shipments and Insights’, from Counterpoint Research’s Smartphone 360 Service. By 2027, we expect GenAI smartphone shipments to reach 522 million units, growing at a CAGR of 83%.

Outlook for Smartphones in 2024

CFO Akash Palkhiwala: “We entered fiscal ’24, our view was that Android channel inventory had largely normalized. And so as we go through the year, we typically see normal build bleed cycle around handset launches.

So, that’s kind of the phase we are in from our perspective. In the first quarter, what we saw was higher demand due to the acceleration of Android flagship launches with our new chip, Snapdragon 8 Gen 3. And we saw very strong demand across all the major Android OEMs. And so happy, of course, with that traction and that momentum carries over to the second quarter as well.”

Parv Sharma’s analyst take: We are assuming Android volumes will recover somewhat, as excess inventory in finished goods, which was a drag on the market throughout 2023, allowing an inflow of new models. However, we also expect some new inventories to be built in 2024 as competitive forces (Huawei resurgence) and uncertain demand (China and Europe weakness) continue to hamper demand forecasting at OEMs. We forecast smartphone AP/SoC shipments to grow in the low single digits in 2024.

Weakness in IoT and outlook

CFO: From an IoT inventory perspective, what we have seen is stabilization really on the consumer side. As you know, we were one of the first to call out the weakness in IoT, and now we’re seeing it go through both on the industrial and the edge networking side. And consistent with our previous comments, we think the first quarter was the bottom for our IoT revenue stream. We’re guiding second quarter up mid- to high single digits. Second half of the fiscal year, as we see the inventory channel kind of normalizing and end markets kind of benefiting from that, we’re excited about what our product portfolio can bring.”

Anish Khajuria’s analyst take: Global cellular IoT module shipments are projected to decline by 5% YoY in 2023. However, the demand is expected to revive by the second half of 2024, with substantial growth predicted for 2025, coinciding with the mass adoption of 5G and 5G RedCap. In the long term, the cellular IoT module market holds promise and applications such as smart meter, router/CPE, POS, automotive and asset tracking will be driving most of the growth for this market.

A Chart showing Qualcomm Revenues Q4 2019 to Q4 2023 (in $ Million)

Result summary

  • Growth in revenues: Qualcomm’s revenues grew 5% annually and 15% sequentially in Q4 2023, driven by the handset and automotive segments.
  • Flagship Android AP/SoCs drive growth: Handset revenues grew 16% annually and 23% sequentially in Q4 2023 driven by flagship chipsets Snapdragon 8 Gen 3 and 8 Gen 2’s design wins and demand from Chinese smartphone OEMs.
  • Automotive continues to drive growth: The company’s automotive segment was driven by increased content in new vehicles along with smartphone digital platforms. In 2023, 75 new models were launched commercially with Qualcomm’s Digital Chassis platforms. Further, on-device AI will enable more silicon content gains in ADAS and cockpit solutions.
  • IoT to come back to growth: IoT revenues declined 32% annually and 18% sequentially due to weakness in demand from elevated inventory levels in the channel. Industrial and edge continued to be weak with some demand coming back in consumer IoT. Qualcomm guided that growth would come back in mid-2024.
  • Seasonal decline: Qualcomm guided a sequential decline in Q1 2024 revenues due to seasonality. Android revenues will be flat, IoT revenues will grow in mid-to-high single digits, and auto revenues will decline.
  • Inventory levels: Smartphones are now at normal inventory levels, while the IoT inventory is expected to normalize by Q2 2024.
  • Extension for key licenses: Apple is extending its license for baseband modems by two years to March 2027, while long-term agreements with Chinese smartphone OEMs are being renewed. A multi-year agreement with Samsung has fetched a third extension. These highlight the importance of Qualcomm’s core IP and product leadership.
  • Snapdragon Elite X launching in 2024: For PCs, the Snapdragon Elite X will launch in mid-2024. It offers new GenAI features and better performance and battery life for Windows-based PCs.

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MediaTek Delivers Strong Q4 2023 Performance as Smartphone Market Recovers

  • Mobile segment fueled by strong demand for 5G and 4G SoCs.
  • Inventory down to a healthy level during the quarter.
  • We expect revenue growth in the flagship segment in 2024.
  • On-device Gen AI set to be adopted across multiple applications like Auto, HPC and Edge computing.
  • Enterprise ASIC projects to start production in late 2025, with revenue contribution expanding in 2026.

MediaTek’s revenue jumped 17% QoQ and 18% YoY in Q4 2023, largely driven by a recovery in the global smartphone market and the successful ramp up of the brand’s flagship SoC, the Dimensity 9300. The mobile segment experienced exceptional annual and sequential growth due to high demand for 5G and 4G SoCs. On-device gen AI is driving smartphone upgrade demand among flagship and high-end smartphones. Gen AI is also making its way into computing devices, specifically tablets. The Dimensity 9300, which has impressive generative AI capabilities, has been adopted by many tablet manufacturers for their flagship models.

Customer and channel-level inventory lowered to a healthy level

CEO Rick Tsai: “The inventory level right now is very healthy. Maybe at the end of Q4 2023, a bit too healthy. And you’re right that we are…Actually, in some cases, we are rushing our manufactured partners for shipments to us. Saying all that, our goal, of course, is to maintain a stable inventory. I think we have learned our lessons.”

Shivani Parashar’s analyst take: “In Q4 2023, MediaTek successfully lowered its high inventory levels to a more normalized state, with stable customer and channel inventory. According to our supply chain checks, MediaTek’s channel-level inventory is currently at a normal level. Smartphone OEMs have started restocking their inventory, but they remain cautious. The macroeconomic conditions in the US and China have somewhat stabilized, with a moderate increase in demand. For Q1 2024, MediaTek anticipates strong YoY revenue growth, reflecting a more normalized inventory situation.”

On ARM

CEO: “We work with them on our modem, but we build our partnership with them. And I cannot say whether they will succeed or not for Xiaomi, but we do know OPPO met difficulties for sure… in many ways, I think that makes OPPO now even a stronger partner with us and vice versa. Still for ARM, we understand ARM is a business objectives and the business model and the — and but if you look around the industry, MediaTek is one of the very, very few to AP really advanced AP supplier with track record. And I think it’s important, maybe even imperative that we work together as an ecosystem partner in the market share together.”

Parv Sharma’s analyst take: “It is not easy to develop chipsets. We have seen consolidation in the industry and many players have also quit the development of in-house chipsets. Building modems is another ball game as it requires IP and expertise. MediaTek has benefited from OEMs canceling their in-house development as these OEMs are now more reliant on chipset vendors. We have also seen MediaTek taking a collaborative approach by partnering with smartphone players to tweak chipsets for their smartphones.”

CEO: I think the growth picture remains still a little uncertain. First quarter, obviously, we know well and we are having, I would say, a strong YoY growth. And we all know, one of the major driver was the restocking. However, also, I would say, our SoS, the flagship SoC for the mobile applications is also contributing a great deal to our growth. My expectation is for our flagship SoC’s growth to continue into the year the restocking momentum remains to be seen somewhat.”

Shivani Parashar’s analyst take: “

“In 2024, we expect Android volumes to recover due to the normalization of excess finished goods inventory which weighed on the market throughout 2023. This normalization is expected to pave the way for an influx of new models. We anticipate MediaTek gaining volume as the low- and mid-market rebounds. However, we foresee increased competition in the entry-level 5G segment from Qualcomm and UNISOC. For MediaTek, 5G penetration is expected to rise more than other brands, considering its current greater dependence on LTE chipsets. Additionally, we expect revenue growth in the flagship segment in 2024.”

A chart showing Mediatek Revenues ($ Million), Gross Profit, R&D, Expenditure and Operating Income (%), Q4 2019 - Q4 2023

Result summary

  • Growth in revenues: MediaTek’s Q4 2023 revenue rose 17% QoQ and 18% annually to reach $4.1 billion, mainly due to recovery in the smartphone market.
  • The mobile segment witnessed robust growth in revenue: The mobile segment revenue climbed 45% YoY and increased by 53% QoQ in Q4 2023 to account for 64% of the company’s total revenue. Growing demand for 5G and 4G SoCs and the successful ramp up of the company’s third-generation flagship SoC, the Dimensity 9300, contributed to this growth.
  • New opportunities for smart edge: The smart edge segment accounted for 30% of the company’s revenue in down 20% QoQ. The decrease was mainly due to a reduction in orders from TV customers because of the pre-built inventory in H1 2023. 5G modems, automotive and ASIC categories continue to grow in Q1 2024.
  • Power IC: The Power IC segment accounted for 6% of the company’s total revenue, up 18% YoY and flat QoQ in Q4 2023. Data centers and Power IC witnessed strong growth while broad-based consumer electronics revenue was flattish.
  • Favorable guidance: MediaTek guided flat/slightly declining revenue for Q1 2024, ranging between $3.9 billion and $4.2 billion. Gross margin is expected to be around 47% in Q1 2024 while the operating expense ratio is expected to be around 28%. In Q1 2024, mobile segment revenue is expected to marginally decline following robust demand for restocking in Q4 2023. The smart edge segment will remain flat due to seasonality while the Power IC segment will decline due to seasonality and product transitions.
  • Auto pipeline remains unchanged: In the automotive segment, in addition to the generative AI possibilities inside vehicles, the Dimensity Auto platform is consistently gaining popularity globally. MediaTek expects e-cockpit, 5G telematics and power IC, combined with NVIDIA’s ADAS and software to position the company as a robust strategic partner for car manufacturers worldwide.
  • Inventory turnover: MediaTek’s inventory declined to a healthy level in Q4 2023. The brand expects the overall inventory environment to continue to improve in the coming quarters.

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Global Semiconductor Revenues Decline 8.8% in 2023; AI Promises Gains in 2024

  • Intel reclaimed the #1 spot in terms of revenue in 2023 due to Samsung’s slowdown from memory downturn.
  • NVIDIA capitalized on AI investments to almost double its revenues in 2023 and claim the #3 spot.
  • The memory sector suffered the most in 2023 due to weak demand and oversupply.
  • Artificial intelligence and memory rebound will be the revenue driver in 2024.

Seoul, Beijing, Boston, Buenos Aires, Hong Kong, London, New Delhi, San Diego – January 26, 2024

The global semiconductor industry’s revenue declined 8.8% in 2023 due to a slowdown in enterprise and consumer spending, according to preliminary results/forecasts from Counterpoint Research. Besides, the overall 2023 semiconductor revenue rankings saw some big changes from 2022, like Intel reclaiming the top spot from Samsung as the latter suffered a lot from the memory sector downtrend as well as lackluster smartphone business. AI provided positive news to the semiconductor industry, emerging as a key content and revenue driver, especially in the second half of the year. NVIDIA appeared to be the largest beneficiary, followed by AMD. Both will be growing their AI-related businesses in the coming years.

We believe 2023 was a year for semiconductor companies to fine-tune their strategies/outlook and manage inventory adjustments to prepare for the impending AI boom. According to Counterpoint’s semiconductor revenue tracker, only 6 out of the top 20 global semiconductor vendors reported YoY revenue growth. The memory sector, in particular, experienced strong headwinds and was down 43% YoY in terms of revenue in 2023. We also found that the top 20 global semiconductor vendors contributed to 71% of the market, down from 76% in 2022 and showing a 14% YoY revenue decline.

Top 10 Semiconductor Companies’ Revenue 55% of Global Revenue

Counterpoint Research
Source: Counterpoint Research
(*) numbers are based on preliminary forecasts by Counterpoint Research

Intel reclaimed its first place in semiconductor revenue rankings in 2023, though it reported a 16% YoY decline in its revenue largely due to a double-digit YoY shipment decline in both the PC and server segments. Samsung too was massively affected by the memory market slowdown in both DRAM and NAND segments, reporting a 38% YoY decline in its revenue. The memory market was mainly hit by soft demand in the PC, server and smartphone segments as well as oversupply and excess inventory across the market. SK hynix and Micron, two other major players in the memory market, also reported huge declines in their revenues at 33% and 36% YoY, respectively.

NVIDIA was in the spotlight in 2023 thanks to the acceleration of AI deployments. We believe the company will continue to lead the semiconductor industry’s growth because of its high market share of general-purpose GPUs used in AI/high-performance computing. NVIDIA saw an 86% YoY revenue growth in 2023 to rank third in terms of revenue, its first-ever top-five position.

Commenting on the market dynamics, Senior Analyst William Li said, “In general, we believe artificial intelligence (AI server, AI PC, AI smartphone, etc.) will continue to be a major organic growth driver in the semiconductor industry in 2024, followed by the memory sector’s rebound due to normalizing oversupply situation and demand recovery. The automotive sector could be another driver for the market due to content growth, which was already a key revenue driver for Infineon and STMicroelectronics in 2023.”

Since we are at the end of the inventory correction cycle and the support from clients’ demand is relatively solid, supply constraints will likely be the key variants to keep an eye on. During its latest quarterly earnings call, the world’s largest foundry player, TSMC, maintained its solid capacity expansion plan for 2024. The company holds an optimistic view on its utilization rate in the coming quarters, which also reaffirms our view of strong demand throughout the year.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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Infographic: Q3 2023 | Semiconductors, Foundry Share and Smartphone AP Share

Infographic: Semiconductors Top 7 in Q3 2023

Nvidia took the #1 spot in terms of global semiconductor revenue at the expense of Intel, which largely benefitted from its booming data center business. Nvidia is expected to continue its dominance in semiconductor revenue performance in the coming quarters due to solid AI server demand from tech giants. Intel reported QoQ revenue growth thanks to incremental PC orders. Samsung remained #3 in the quarter with QoQ growth coming from continuous recovery in its memory business. SK Hynix also benefited from this trend and reported sequential revenue growth.

A chart showing the top 7 semiconductors by revenue in Q3 2023
* Qualcomm revenue excludes QTL
** Excludes pure-play foundries like TSMC to avoid double-counting of industry revenue
*** Excludes Apple and Huawei developments for in-house semiconductor chip designs

Use the button below to download the high resolution PDF of the infographic:Download button


Infographic: Global Smartphone AP Share in Q3 2023

Global Smartphone AP Share by Shipments

MediaTek dominated the smartphone SoC market in Q3 2023 with a share of 33%. MediaTek’s shipments increased in Q3 2023 as the inventory levels came down. New smartphone launches in the low- and mid-end segments have increased the shipments in the Dimensity 7000 series. MediaTek also refreshed the Dimensity 9300 with Gen AI capabilities. Qualcomm captured a 28% share during the quarter. Qualcomm’s shipments increased sequentially in Q3 2023 due to the high shipments for the Snapdragon 695 and Snapdragon 8 Gen 2 chipsets. Also, key design wins for the Snapdragon 8 Gen 2 in the Samsung Galaxy Fold/Flip series contributed to this growth.

Global Smartphone AP Share by Revenue

Qualcomm dominated the AP market in Q3 2023 with a 40% revenue share. The premium segment drove the brand’s growth due to the adoption of Snapdragon 8 Gen 2 in Samsung’s flagship smartphones and by Chinese OEMs. Apple had a 31% share in the AP SoC market in Q3 2023 in terms of revenue. Apple’s share increased by 23% QoQ due to the launch of the iPhone 15 and iPhone 15 Pro series. MediaTek captured the third position with a share of 15% in the total global smartphone AP/SoC revenues. MediaTek’s revenue increased QoQ in Q3 2023 as the inventory levels came down while the competition in the entry-level 5G segment continued to grow.

Infographic Global Smartphone AP Market Share Q3 2023

Use the button below to download the high resolution PDF of the infographic:


Infographic: Foundry Revenue Share in Q3 2023

Foundry Companies’ Share by Revenue

In Q3 2023, the global foundry industry witnessed a clear hierarchy in market share. TSMC dominated the landscape with an impressive 59% market share driven by N3 ramp-up and smartphone restocking demand. At the second position was Samsung Foundry with a 13% share. UMC, GlobalFoundries and SMIC had similar market shares with each contributing around 6%. TSMC’s significant lead underscored its technological prowess and market leadership, setting the tone for the industry’s trajectory in Q3 2023. However, some mature node foundries such as UMC started to face headwinds in Q3 2023 due to muted LDDIC and PMIC demand.

Foundry Industry Share by Technology Node

In Q3 2023, the market was prominently led by the 5/4nm segment, which had a 23% share. This dominance resulted from strong demand, particularly from AI and iPhone. The 7/6nm segment’s market share remained steady, showing early signs of order recovery in the smartphone market. On the other hand, the 28/22nm segment encountered challenges due to inventory corrections in networking applications, while the 65/55nm segment experienced a downturn due to decreasing demand in automotive applications.

Infographic Global Foundry Revenue Share Q3 2023

Use the button below to download the high resolution PDF of the infographic:


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Global Smartphone AP-SoC Market Share: Quarterly

Global Smartphone AP (Application Processor) Shipments Market Share: Q2 2022 to Q3 2023

Published Date: December 6, 2023

A repository of quarterly data for the global smartphone AP market based on smartphone AP/SoC shipment numbers.

Global Smartphone Chipsets Market Share Q3 2023

This data is based on the smartphone AP/SoC shipments

Note: Totals may not add up due to rounding

Global Smartphone Chipset Market Share (Q2 2022 – Q3 2023)
Brands Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Mediatek 36% 35% 33% 33% 31% 33%
Qualcomm 32% 32% 19% 27% 29% 28%
Apple 13% 16% 28% 26% 19% 18%
UNISOC 11% 9% 11% 8% 15% 13%
Samsung 8% 8% 8% 4% 6% 5%
HiSilicon (Huawei) 0% 0% 0% 0% 0% 1%
Others 0% 1% 1% 1% 1% 1%

Source: Global Smartphone AP-SoC Shipments & Forecast Tracker by Model – Q3 2023

Highlights:

Apple: Apple’s shipments grew in Q3 2023 driven by the launch of the iPhone 15 and iPhone 15 Pro series.

MediaTek: MediaTek’s shipments increased in Q3 2023 as inventory levels came down and the competition tightened in the entry-level 5G segment. New smartphone launches in the low- and mid-end segments have increased the shipments of the Dimensity 6000 and Dimensity 7000 series. The Dimensity 9300 was also upgraded with generative AI capabilities.

Qualcomm: Qualcomm’s shipments in Q3 2023 grew as inventory is now stabilizing to normal levels. Design wins for the Snapdragon 8 Gen 2 in the Samsung Galaxy Fold/Flip series also contributed to the growth in shipments. Qualcomm refreshed the Snapdragon 7 Gen 3 and Snapdragon 4 Gen 2 series to gain some share back, but the focus will be more on the growth of the premium segment.

Samsung: Samsung’s shipments slightly increased in Q3 2023. The launch of the Samsung Galaxy M14 series with Exynos 1330 and Samsung Galaxy A54 series with Exynos 1380 added volume to the overall Samsung chipset segments.

UNISOC: UNISOC’s shipments remained flat QoQ in Q3 2023. However, it has gained some share in the $100-$150 LTE portfolio. As inventory levels are normalizing, we have a positive outlook for Q4 2023.

For a more detailed smartphone AP-SoC shipments & forecast tracker, click below:

Global Smartphone AP-SOC Shipment & Forecast Tracker by Model – Q3 2023

This report tracks the smartphone AP/SoC Shipments by Model for all the vendors. The scope of this report is from the AP/SoC shipments from all the key vendors like Apple, Qualcomm, MediaTek, Huawei, Samsung, UNISOC and JLQ. We have covered all the main models starting from Q1 2020 to Q3 2023. We have also included a one-quarter forecast for Q3E 2023. This report will help you to understand the AP/SoC Market from the shipment perspective. Furthermore, we have also covered key specs for these AP/SoC covering market view by:

  • Network (4G/5G AP/SoC)
  • Foundry Details (like TSMC, Samsung. etc.)
  • Process node (5nm, 6nm, 8nm, etc.)
  • Manufacturing Process (FinFET, N7, N5, etc.)
  • CPU Cores Architecture and CPU Cores Count
  • Modem (External/Internal)
  • Modem Name
  • Secure Element Presence
  • Security Chip
  • AI Accelerator
       

For detailed insights on the data, please reach out to us at sales(at)counterpointresearch.com. If you are a member of the press, please contact us at press(at)counterpointresearch.com for any media enquiries.

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Global Semiconductor Foundry Market Share: Quarterly

Global Semiconductor Foundry Revenue Share: Q3 2023

Published Date: November 30, 2023

This page shows the quarterly revenue share for the top players in the global semiconductor foundry market from Q1 2022 to Q3 2023.

Global-Semiconductor-Foundry-Revenue-Share-Q3-2023

Global Foundry Market Share (%) Q1
2022
Q2
2022
Q3
2022
Q4
2022
Q1
2023
Q2
2023
Q3
2023
TSMC 54% 56% 59% 59% 59% 57% 59%
Samsung Foundry* 15% 13% 12% 13% 13% 14% 13%
UMC 7% 8% 7% 7% 6% 7% 6%
GlobalFoundries 6% 6% 6% 6% 7% 7% 6%
SMIC 6% 6% 6% 5% 5% 6% 6%
Others 12% 11% 10% 10% 10% 9% 10%

(*) Samsung includes foundry service for its internal logic IC business

This page provides a view on the global foundries revenue share from 2021 till 2023. Here are some highlights from Q3 2023:

  • TSMC recorded sequential growth in revenue in Q3 2023, helped by positive signs of recovery in the PC and smartphone markets, along with early signs of demand stabilization.
  • Automotive and industrial applications underwent inventory corrections in Q3 2023, and we expect the inventory correction period to linger into Q1 2024.
  • AI chip demand was robust in Q3 2023 and will remain strong in Q4 2023, evident from the AI GPU shortage. We believe this trend will extend into 2024.
  • Recovery in advanced nodes is expected to surpass mature nodes in terms of capacity utilization rate. Mature node foundries will face challenges from low utilization rates and increasing price competition going forward.

Read our foundry quarterly report for Q3 2023 here.

For detailed insights on the data, please reach out to us at sales(at)counterpointresearch.com. If you are a member of the press, please contact us at press(at)counterpointresearch.com for any media enquiries.

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Meet Counterpoint at 2023 IEEE-EPS-IESA Workshop on Semiconductor Packaging

Counterpoint Research is attending the 2023 IEEE-EPS-IESA Workshop on Semiconductor Packaging

Our Senior Analyst, Ashwath Rao will be attending the workshop at The LaLiT Ashok, Bengaluru. You can schedule a meeting with him to discuss the latest trends in the technology, media and telecommunication sector and understand how our leading research and services can help your business.

When: 30th November & 1st December 2023

Where: The LaLiT Ashok, Bengaluru, Karnataka, India

About the Workshop:

A collaborative initiative by IESA and IEEE-EPS (USA), this workshop aims to unite stakeholders across government, industry, academia, policymaking, entrepreneurship, and students to foster innovation in semiconductor packaging, focusing on microsystems packaging and manufacturing. Addressing manufacturing and educational needs, the workshop catalyzes collaborative research discussions.

Click here (or send us an email at contact@counterpointresearch.com) to schedule a meeting with them.

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MediaTek Strengthens Premium Push With Gen AI Capabilities

  • The Dimensity 9300 is integrated with the 7th-gen APU 790 processor, which supports a broad generative AI ecosystem and models including Meta Llama 2, Baidu ERNIE 3.5 SE and Baichuan 2.
  • It can run with 13 billion parameters, which are scalable up to 33 billion, on-device at a processing speed of up to 20 tokens per second.
  • The Dimensity 9300 will debut with the vivo X100 smartphone in mid-November

MediaTek recently launched its third-generation premium chipset Dimensity 9300. The company has emerged as a strong competitor in the premium smartphone chipset market after launching the Dimensity 9000 in Q1 2022. Currently, MediaTek leads the low-mid segment and drives significant volumes both for 4G and 5G in this tier.
Adopting a non-traditional CPU core design, the Dimensity 9300 focuses on raw performance. It has four large cores (Cortex-X4) and four performance cores (Cortex-A720 cores), thus enabling it to excel in raw computing power and advanced AI capabilities.

Mediatek Dimensity 9300 Features

Dimensity 9300 key specifications

Like the last two generations, the Dimensity 9300 SoC is built on a TSMC 4nm process node. It is more efficient and performs better than the Dimensity 9200. There is a 40% improvement in the multi-core performance and a 15% improvement in the single-core performance. The Dimensity 9300 combines an octa-core CPU with the company’s second-generation hardware raytracing engine, enabling smartphones to achieve console-level global illumination effects at a smooth 60 FPS. Besides, the chipset supports seamless multitasking, allowing users to simultaneously play games and stream videos or watch a video while gaming.

  • Four ARM Cortex-X4 CPU. Prime core clocked at up to 3.25GHz
  • Four ARM Cortex-A720 CPU clocked at up to 2.0GHz

Mediatek Dimensity 9300 CPU Architecture

7th-gen APU 790 processor

The chip is equipped with MediaTek’s next-generation APU 790 processor, which reduces power consumption by 45% while improving performance. Its processing speed is eight times that of the APU 690. It also offers significant improvements in generative AI performance and energy efficiency for edge computing. The APU 790 is specifically designed for generative AI tasks, marking a substantial upgrade over its predecessor. It accelerates processing through the Transformer model and supports image generation within one second using Stable Diffusion. The APU 790 also supports large language models with up to 33 billion parameters. MediaTek has also implemented mixed-precision INT4 quantization technology and NeuroPilot memory hardware compression to optimize memory usage for large AI models.

Mediatek Dimensity 9300 APU

The Dimensity 9300 has a strong AI generative ecosystem, which supports language models like Llama 2, Baichuan 2 and Baidu AI LLM. It helps developers to efficiently deploy multi-modal generative AI applications for users.

Immortalis-G720 GPU

With the integration of ARM’s latest GPU, the Immortalis-G720, the Dimensity 9300 offers almost a 46% boost in GPU performance and 40% power reduction compared to the Dimensity 9200.

Mediatek Dimensity 9300 GPU

The Dimensity 9300 chipset supports the new Ultra HDR format in Android 14, improving mobile photography with vibrant images and compatible JPEG files. It also offers ambient light adaptive HDR recovery technology for enhanced photography. It supports 100% pixel-level autofocus, dual lossless zoom and 3-microphone HDR audio recording.

The chipset’s display system is equipped with the MiraVision Picture Quality (PQ) engine which dynamically adjusts the contrast, sharpness and color of primary objects, resulting in lifelike video experiences similar to high-end TVs. It uses on-device AI to detect primary objects and background images in real time.

Enhanced connectivity

The Dimensity 9300 offers Wi-Fi 7 speeds up to 6.5 Gbps and improved long-range connectivity with Xtra Range 2.0 Technology. It also enhances smartphone tethering speeds by up to three times using Multi-Link Hotspot technology. The Dimensity 9300 also supports up to three Bluetooth antennas and features dual Bluetooth flash connection technology for an ultra-low latency Bluetooth audio experience.

DRAM support and security

The Dimensity 9300 is the first SoC that supports the LPDDR5T up to 9600 Mbps. Also, it integrates two SUPs, one for boot security and one for computing security.

Dimensity 9300 vs Snapdragon 8 Gen 3

In terms of specifications, the Dimensity 9300 uses all big core architecture 4 prime cores (Cortex-X4) and 4 big cores (Cortex-A720), whereas the Snapdragon 8 Gen 3 uses one prime (Cortex-X4), five big (Cortex-A720) and two small cores (Cortex-A520). MediaTek with its all-big core design is addressing generative AI and gaming applications. On paper, the Dimensity 9300’s AI performance is competitive. The Dimensity 9300 supports large language models that can run with 13 billion parameters, whereas the Snapdragon 8 Gen 3 can run with 10 billion parameters on-device.

The fact that MediaTek now offers performance and efficiency gains that are comparable to Qualcomm’s latest-generation flagship offerings, shows MediaTek wants to directly compete with Qualcomm in the premium segment. Overall, this is going to be a win-win for the industry, as it will raise the bar and, in turn, benefit the end users.

A table showing the differences between Mediatek Dimensity 9300 and Qualcomm Snapdragon 8 Gen 3

Expected timeline

The vivo X100 will be the first smartphone to carry the Dimensity 9300 chipset. It will be available in the market by the end of 2023. We expect that the Dimensity 9300 will have better adoption among Chinese OEMs compared to the Dimensity 9200. China will be the first target market for smartphones with the Dimensity 9300, followed by India, SEA and Europe.

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