Counterpoint Research: NVIDIA ranks second in global semiconductor company revenue in Q1 2024

According to the Zhitong Finance and Economics APP, on June 27th, Counterpoint Research released the market share of semiconductor and wafer foundry companies, as well as smartphone AP share for the first quarter of 2024. In terms of semiconductors, in the first quarter of 2024, Samsung ranked first in the global semiconductor market due to strong demand from the memory market (especially DDR5 and storage for generative artificial intelligence). NVIDIA ranked second, achieving revenue growth for a consecutive quarter (19% QoQ growth), benefiting from its dominant position in the field of artificial intelligence, leading to a sales boom in the data center segment.

Intel's revenue in the first quarter of 2024 decreased by 14% QoQ, attributed to weak demand for Intel's foundry division, Altera, and Mobileye.

SK Hynix and Micron also benefited from a strong memory market, ranking fourth and seventh respectively in that quarter, and achieving consecutive revenue growth.

Qualcomm and Broadcom ranked fifth and sixth respectively in that quarter, both experiencing single-digit QoQ revenue declines due to weak core business performance.

Revenue Share of Wafer Foundry Companies in Q1 2024

Wafer Foundry Revenue Share

In the first quarter of 2024, the wafer foundry industry showed mixed performance, with some notable changes in market dynamics. TSMC exceeded market expectations with strong demand for artificial intelligence accelerators. The company raised its revenue forecast for data center artificial intelligence, expecting a doubling YoY in 2024, and projecting a 50% compound annual growth rate in artificial intelligence revenue by 2028. Despite the continuous expansion of CoWoS capacity, it is still insufficient to meet the surging demand for artificial intelligence. Samsung Foundry maintained its second position, despite a decrease in revenue due to seasonal factors in smartphones. Huaxin Semiconductor obtained third place for the first time. UMC and SMIC both saw bottoming out of consumer and smartphone demand, with recent dim prospects for automotive demand. As channel inventory normalizes and streamlines, strong demand for artificial intelligence and signs of moderate recovery in end demand indicate that the industry may achieve growth in 2024.

Revenue Share of Wafer Foundry Industry by Technology Node

In the first quarter of 2024, the revenue share of the wafer foundry industry by technology node showed significant changes, influenced by differences in demand from various industries. The 5/4nm node dominated with 26% market share, driven by strong demand for artificial intelligence. In contrast, the 3nm node experienced the most significant decline, dropping from third to fifth place with a market share of 6%, mainly due to the off-season effect of iPhone production. The market share of 7/6nm, 28/22nm, and 16/14/12nm nodes also decreased to 12%, 8%, and 7% respectively, primarily due to seasonal declines in the smartphone and PC markets These trends highlight the current dynamics of the semiconductor foundry industry, with advanced nodes benefiting from AI-driven growth, while traditional nodes face challenges from cyclical consumer electronics demand.

Global Smartphone AP Market Share in Q1 2024

Global Smartphone AP Market Share by Shipment Volume

MediaTek dominates with a 40% market share. This strong performance is attributed to: the growth in demand for 5G SoCs as 5G becomes more prevalent in the smartphone market, leading to increased demand for corresponding chips; the successful release of Dimensity 9300: MediaTek's third-generation flagship SoC Dimensity 9300 has received positive market feedback, boosting its market share; MediaTek's advantage in the entry-level 5G chipset segment: benefiting from this, as 5G technology penetrates the low-end smartphone market, MediaTek's market share is expected to further increase.

Qualcomm secured 23% market share in the quarter with the launch of Snapdragon 8 Gen 3 flagship chipset and the successful penetration of Snapdragon 8 Gen 2 into the supply chain of Chinese smartphone manufacturers. However, due to Samsung Galaxy S24 series adopting both Qualcomm and Samsung chipsets, Qualcomm's market share was partially eroded.

Global Smartphone AP Market Share by Revenue

Qualcomm maintains the top position with a 36% market share. Its strong performance is mainly attributed to two factors: strong demand for the newly released Snapdragon 8 Gen 3 chipset in the high-end smartphone market, and the successful penetration of Snapdragon 8 Gen 2 into the supply chain of Chinese smartphone manufacturers.

Apple ranks second with a 33% share, but its revenue declined compared to the previous quarter due to seasonal factors.

MediaTek ranks third with a 17% market share. Although MediaTek's revenue in the first quarter also declined compared to the previous quarter (due to seasonality and a significant decrease in LTE SoC shipments), its full-year shipment volume is expected to maintain a growth trend, thanks to the growth in 5G demand and the successful mass production of its third-generation flagship chipset Dimensity 9300