MediaTek is slowly eating away Qualcomm's share of the cell chipset market

The massive photo: The global transition to 5G is accelerating, and that is the reason the place Qualcomm still dominates. because the company lost a few of its grip on the LTE side and Huawei misplaced the skill to make its own chips, MediaTek was quick to step in and scoop up some of their business. or not it's no longer yet clear if this trend will continue past the latest chip shortage, but the landscape of software processors, techniques-on-a-chip, and baseband modems is actually altering.

back in December 2020, MediaTek surpassed Qualcomm in terms of market share for the primary time, with over one hundred million smartphones sold in Q3 2020 being powered by using its Dimensity and Helio chipsets. The latter enterprise is still the king of 5G chipsets for now with a fifty five % share of complete quantity, however feels like its dominance is now being challenged more than ever earlier than.

in keeping with new facts for Counterpoint research, MediaTek's share of the world smartphone SoC and baseband modem market has grown to 43 p.c in the 2d quarter of this 12 months, which is a suit increase from the 35 p.c share recorded in the previous quarter. by way of evaluation, Qualcomm had a 29 percent share of the market in Q1, however handiest a 24 p.c share in the second quarter.

an immense driver of MediaTek's growth over the three months ending in June become a relentless focal point on low-conclusion and mid-range 5G-competent chipsets in addition to aggressive pricing on LTE chipsets. This allowed the Taiwanese enterprise to seize 30 p.c of the 5G modem market, while Qualcomm at present leads with a fifty five percent share. both companies are up 12 months-over-yr at the cost of Samsung, Huawei, and others -- Qualcomm's share grew 90 p.c whereas MediaTek's share nearly tripled over the same duration.

Qualcomm has been struggling on account of the continued chip scarcity, and the business has been hit in particular hard within the excessive-end segment, the place it hasn't been capable of mitigate supply chain bottlenecks. in the meantime, Apple seems to be the simplest enterprise that has seen little have an effect on, however that situation could change within the coming months. either approach, a huge reason Qualcomm dominates the 5G area is Apple's iPhone 12, however that allows you to go away in 2023 when the Cupertino big will transition to in-apartment 5G modems.

Samsung's share of the cellular chipset market slipped this 12 months to just seven p.c, but the company currently began promoting its Exynos chips to chinese ODMs as well as Google, so it may not be lengthy earlier than its market share bounces returned. additionally, the Korean large is preparing an Exynos 2200 chipset with "Voyager" Radeon graphics, expanding the drive on Qualcomm even additional.

MediaTek's energy has historically been in the low-end and mid-latitude segments, however the company has massive plans for the excessive-conclusion arena and is slowly making its means into the lucrative US market. The rumor mill says MediaTek's upcoming Dimensity 2000 chipset will be developed on TSMC's 4nm node and should be in a position to compete with Qualcomm and Samsung's most appropriate in terms of efficiency and energy effectivity. If authentic, we're in reality looking at enjoyable times forward.

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