IC Insights recently posted a news bulletin revealing Intel topped the global semiconductor sales chart in the first quarter. The update also noted Huawei’s chip design unit HiSilicon became the first-ever mainland China-based firm to crack the top 10.
IC Insights also found total worldwide component sales grew by 6 percent in Q1 from 2019.
Intel Claims Top Spot with $19.5 Billion in Sales
Intel sold $19.5 billion in semiconductors in the first three months of 2020, up 23 percent year-over-year.
Despite having its operations disrupted by the onset of the coronavirus pandemic, the Santa Clara-based chipmaker recorded better-than-expected Q1 revenue in late April. CEO Bob Swan explained his corporation maintained a 90 percent on-time delivery rate amidst a pandemic because of its robust crisis response resources.
Like many semiconductor manufacturers, Intel saw a near-term surge in sales because the outbreak prompted millions of employees to work remotely. Nevertheless, the firm’s strong catalog and investments in innovation indicate it will lead 2020’s full-year component sales charts.
HiSilicon’s History-Making a Q1 Showing
Huawei subsidiary HiSilicon claimed tenth place in IC Insights’ quarterly sales chart, a record high for a Chinese mainland headquartered supplier. In Q1, the developer generated $2.67 billion in revenue, an annual improvement of 54 percent.
Although China has an unparalleled manufacturing infrastructure, only 16 percent of the nation’s silicon is produced in-country. However, Beijing has sought to change that dynamic by investing in the region’s elite chipmakers. HiSilicon, which designs processors for Huawei’s handsets, has turned heads internationally with the remarkable fast Kirin series mobile CPUs.
Indeed, the unit’s chipsets helped its parent company to become the best-selling smartphone maker in the Chinese market, which, in turn, benefited its semiconductor developer division. Though HiSilicon can supply products to outside buyers, over 90 percent of its first-quarter sales came from Huawei. Because the conglomerate greatly increased its chip orders last period, its component segment topped China’s mobile chip vendor standings.
With Huawei emerging as a leading provider of 5G-enabled mobile devices, HiSilicon should continue to do brisk business throughout 2020.
Other Notable Q1 Semiconductor Sales Results
Samsung ranked as the world’s second-largest semiconductor company in Q1, with sales totaling $14.7 billion, up 15 percent from 2019. The South Korean conglomerate made so much component revenue last period, it mitigated its smartphone and appliance segment contractions. However, as the firm predicts a significant overall income decline in Q2, its chart position may fall in the June quarter.
The Taiwanese Semiconductor Manufacturing Company (TSMC) recorded $10.3 billion of revenue in Q1, a 45 percent year-over-year upswing. IC Insights ascribes the firm’s booming business to the fact that it manufactures 7nm chipsets for Apple and Huawei. As such, the foundry might dethrone Samsung as the global number two semiconductor maker if its clients’ orders remain consistent.
Lastly, IC Insights reports Nvidia made $3.03 billion in the quarter previous, a 36 percent yearly improvement. The Santa Clara, California-based chipmaker will not announce its quarterly results until May 26, but it declared sales of $2.22 billion in the 2019 March quarter. As the corporation is supplying components for Microsoft and Sony’s forthcoming gaming consoles, its Q2 results should be strong.
As COVID-19 continues to cause massive disruption in the global economy, the semiconductor industry’s second-quarter revenue could plummet in Q2. However, as the world’s data infrastructure is built on components, a mid to long-term recovery is inevitable.