In addition to MediaTek (see previous post for a discussion of AP/CPU/GPU manufacturers), Uniwing and Reynolds are the second and third largest IC designers in China. Since the second quarter of 2022, due to the sluggish global demand for consumer electronics, the sales of display applications are not good, there is a slight downtrend, to the third quarter can be said to show an avalanche of decline, in the past in the gross margin could once be maintained at 50% above and below, but in the first quarter of 2023, only 41.9%. The situation is less serious, until the fourth quarter of 2022 before the annual decline in the situation, but to the first quarter of 2023, ReneSola completely unbeaten by China's weak economic situation, poor demand for network communications, the quarterly annual revenue decline also exceeded 30%, gross margins also plummeted to 43.1%, as shown in Figure 1.

Chart 1 Annual Revenue Growth by Quarter for Unitech and Rexchip

Source：Union and Reynolds; Collated by Chi-Pu Industry Trend Research Institute