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Digitimes Research: AMD discrete GPU market share expected to rise

Eric Lin, DIGITIMES Research, Taipei

SoC-based graphics cards were the most widely adopted GPU product in 2015 with a market share over 70%. CPU with integrated GPU was the second-largest GPU products, but its market share has been dropping every year because of the PC market's weakening demand. Shipments of discrete graphics cards have also been dropping along with the weakening PC shipments, but AMD's and Nvidia's new GPU architectures are expected to help heat up related shipments in 2016. AMD's new architecture, which has advantages in supporting DirectX 12, will give AMD a chance to narrow its gap with Nvidia.

Although AMD's GPU product types and shipments are both far higher than those of Nvidia, AMD is only seeing thin profits from product lines such as semi-custom and APU products, while its discrete graphics card business has been seriously suppressed by Nvidia. However, in 2016, with better control in graphics technology standards and a product schedule that catches up with competitors, Digitimes Research believes AMD will be able to gain market share from Nvidia.

Nvidia has high shares in high-end and professional graphics card markets. Although the company has withdrawn from the mobile communication chip market, its operation in high-end embedded applications such as car electronics products will continue to contribute strong profits. However, the company is expected to face rising pressure in the discrete graphics card market in 2016.

For the SoC-based GPU, mobile communication chips, which are mainly application processor (AP), account for the largest share in the product sector and ARM is the largest player in the AP GPU market with an over 50% market share in 2015.

GPU IP player Imagination is losing market to ARM as it is seeing issues pushing its mid-range products, causing demand for its products in China to drop and it only had a market share of 18.3% in 2015.

Qualcomm also saw its market share in the AP GPU market decline in 2015 because its high-end products achieved weaker-than-expected sales. However, Qualcomm's share is expected to rise in 2016.

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