That is according to data compiled by TrendForce, which sees the declines as being due to the US-China trade war, mounting inventory levels and limp global demand for electronic goods that no longer show significant generational improvements.

Top ten fabless semiconductor vendors ranked by 2Q19 revenue. Source: TrendForce.

Weak Chinese demand, due to the US-China trade war, is especially hurtful to the leading fabless companies, Broadcom and Qualcomm, according to TrendForce Analyst Chia-Yang, Yao.

Qualcomm is losing out to Taiwan-based MediaTek and China-based Unisoc. The US ban on sales to China could be the making of a number of indigenous Chinese fabless chip companies. Mediatek had been using TSMC’s 12nm process for its mobile processor product line since 2018 and Unisoc has implemented Cortex-A55 and A75 CPUs in its low-mid range processors.

Nvidia’s sales declined by 20 percent year-on-year despite enjoying growth in automotive and professional visual applications. These moves could not offset the collapse in sales for graphics cards and datacenters. The decline is likely to reduce in 3Q19 as inventory is burnt off, TrendForce said.

Although MediaTek gained some marketshare from Qualcomm in smartphone applications it was still affected by weak global demand.

Xilinx demonstrated the advantage of having a diverse clientele across the industrial, telecommunications and automotive segments and minimal exposure to the weak consumer market and posted 24.3 percent growth.

Taiwanese IC design companies Novatek and Realtek also performed well. Novatek, with its TDDI solutions, received considerable interest by China’s smartphone suppliers. Adding the feverish demand for AMOLED driver chips, revenue grew by 18 percent YoY.

As for Synaptics, it’s poor performance in the mobile segment dragged down overall revenues, whereas Dialog gave growths in customized mixed-signals, connection and audio applications, putting Dialog back at tenth place in overall revenue.

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