TAIPEI (Taiwan News) — Taiwanese chip maker MediaTek was ranked the fifth largest IC designer by revenue in the third quarter by market research firm TrendForce.

MediaTek saw its quarter-on-quarter revenue decline 11.6% to NT$152 billion (US$4.68 billion), according to TrendForce. MediaTek was hampered by weak sales numbers for the Chinese smartphone brand and clients who saw inventory corrections.

MediaTek experienced a decline in revenue from mobile solutions, smart edge platforms and power ICs in the third quarter. TrendForce notes that going forward, inventory reduction will remain MediaTek’s top priority.

Fellow Taiwanese IC designer Realtek, which ranked seventh in Q3, saw revenue decline 5.5% from the previous quarter to US$979 million. Realtek saw networking and automotive application sales remain steady in Q3, but as overall demand for consumer electronics waned, chips for computers, which account for 32% of its product mix, negatively impacted overall performance, TrendForce said.

Taiwan-based Novatek, which came in eighth in the third quarter, saw a hefty 39.9% drop from the previous quarter to US$643 million. This is because its two main products, SoCs and display driver ICs, were impacted by reduced prices and shipping, according to the report.

Meanwhile, US-based IC designers took the top four spots in Q3, with Qualcomm coming in first, followed by Broadcom, Nvidia, and AMD.

Looking ahead to Q4 and Q1 next year, TrendForce says that due to continued inflation and holiday sales, overall demand for consumer electronics will not increase significantly. In addition, it said that more time is needed for supply levels to be adjusted for the demand side of the chip market.

By Gundah

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