As the global economy faces higher inflation risks and inventory corrections in the downstream sector in the second half of 2022, IC design companies are more sensitive and responsive to market changes than wafer foundries. TrendForce states that factors such as weaker consumer spending, the pandemic, reduced corporate IT expenditures, and a slowdown in demand from cloud service providers have all impacted the total revenue performance of the top 10 IC design companies in Q4 2022, with a quarter-on-quarter decline of 9.2%, approximately $33.96 billion.
TrendForce expects that due to the ongoing inventory correction in the supply chain and the traditional off-season for consumer spending, the market demand will remain weak, barring some demand driven by new product releases and supply chain restocking. Therefore, the revenue of the top 10 IC design companies in Q1 2023 is expected to continue to decline, albeit with a slightly smaller quarter-on-quarter decline.
Weaker end-market demand and inventory corrections have had the greatest impact on MediaTek, which ranks fifth among the top companies. As the consumer market cools and customer inventories are adjusted, the majority of IC design companies have experienced a decline in revenue in Q4. Qualcomm's smartphone and IoT product revenue fell by 22.6% and 16.2%, respectively, leading to a 20.3% drop in total revenue to $7.89 billion, maintaining its top position. Broadcom ranked second with a 2.4% increase in revenue to $7.10 billion, mainly due to strong performance in server storage applications, broadband, and wireless networks, offsetting the impact of inventory corrections.
NVIDIA's Q4 revenue reached $5.93 billion, a 2.7% decrease compared to the previous quarter, with the launch of the RTX 40 series high-end graphics cards and stable automotive demand providing support. Gaming and automotive revenue both increased, offsetting some of the decline in the data center and professional visualization sectors. AMD's revenue increased 0.6% quarter-on-quarter, benefiting from the higher adoption rate of its EPYC platform CPU in data centers and the acquisition of Xilinx, which drove FPGA and DPU business, totaling $5.60 billion in overall revenue. MediaTek, which relies heavily on smartphone and other consumer product chips, experienced the largest impact on revenue, with all product sectors declining, particularly in smartphone-related business, which fell by about 30%. Q4 revenue was only $3.45 billion, a 26.2% decrease compared to the previous quarter.
Notable changes in the rankings include Novatek overtaking Realtek for the seventh position. Novatek's Q4 revenue reached $715 million, an 11.2% increase, making it the company with the highest growth rate in the quarter. This growth reflects the beginning of the inventory restocking cycle for TV-related components such as TV SoCs, Tcon, and LDDI after a period of inventory adjustment in the panel industry since Q4 2021. In contrast, Realtek's Q4 revenue fell to $690 million, a nearly 30% decrease, due to weaker demand for PCs and laptops and the loss of Ethernet orders.
It's worth mentioning that Apple, as Cirrus Logic's major customer, contributes over 80% of its revenue, reaching nearly 90% during peak shipment periods. Benefiting from the iPhone's