Counterpoint’s report of Mediatech’s leadership in the mobile processor market with a 37% share
As you know, MediaTek entered the low-end and mid-range chips compatible with 5G much earlier than Qualcomm. Now that the American company has released a mid-range chip title=”Introduction of Snapdragon 690, Qualcomm’s first 5G mobile platform 6 series”>Snapdragon 690 5G started in the second half of 2020 and Snapdragon 480 is also known as Qualcomm’s first 5G experience on a low-end chip was presented to the market in the first days of this year.
Now the latest Counterpoint Institute report on Monday, May 3 this year (May 13, 1400) shows that Qualcomm And MediaTek is not only in its leadership position in the chip market E-Mobile continue, but the Taiwanese company has a competitive advantage due to having a wide portfolio of fifth generation products. Of course, this advantage will not prevent Qualcomm from maintaining its leading position in the 5G sector.
According to this report, the dynamics of competition in the mobile chip market will quickly benefit large companies such as Qualcomm, Apple, MediaTek and other manufacturers are changing. According to Counterpoint’s forecast, 9 out of 10 smartphones will be equipped with processors made by Qualcomm, Apple, or MediaTek, and these three companies will outperform all other competitors, including Samsung and Exynos chipsets.
The market outlook for these vendors is not only affected by the breadth and depth of their capabilities or the classification of their chip portfolio, but also their capabilities in the production process. It has affected this process. Counterpoint Foundry & Application Processor (AP/SoC) analysts have predicted that the global supply of mobile processors and chips will experience a 3% growth this year compared to 2020. This is related to the limited supply, the rapid growth of demand for 5G phones and the dynamics of competition in this field.
Dale Gai, research director of the institute, says: “When we separate our forecast according to the current supply and demand dynamics, MediaTek will probably start its movement from the fourth quarter of 2020 It will continue until 2021 and will register 37% of the market share of mobile processors offered in the entire year. This potential positive outlook of 20% in annual demand results from the competitive performance of the 5G portfolio of sub-$150 smartphones produced at TSMC, with no supply constraints and increased share in the 4G segment. In addition, in the first half of 2021, Mediatek will overcome Qualcomm’s existing restrictions in supplying RFICs (radio frequency ICs) from the factory Samsung in Austin, Texas will benefit from PMIC (power management IC) and lower production of 5nm products”. In fact, MediaTek has not yet used 5nm lithography to manufacture its processors, and the company’s most advanced technology is the 6nm manufacturing process. According to Guy, Qualcomm will come back stronger in the second half of 2021. Because TSMC will be assured of more production capacity to increase its fifth generation product portfolio. In addition, taking fundamental steps to improve the supply of PMIC and RFIC ICs will reduce the supply limitation of these products in the coming months, and in this way, Qualcomm can maintain its leadership in the fifth generation chip market and have a 31% share of this market in Now the growth is still available.
Counterpoint’s research director continues by emphasizing the importance of leading manufacturing practices and supply The sector’s capacity believes that cutting-edge manufacturing methods, including 7, 6 and 5 nm technologies, will be present in almost half of the smartphones released in 2021, mainly for models compatible with the fifth generation; However, other advanced production methods, including TSMC’s 11, 12 and 14 nm technology and Samsung, this year, will be used for chips based on 4G LTE technology.
Parv Sharma, a research analyst at Counterpoint, also points to the growing market of chips used in 5G smartphones and emphasizes: “We estimate that Qualcomm will increase its share of the 5G chip market with next-generation solutions in 2021. Fifth, across all [product] categories, from the Snapdragon 8 Series to the 4 Series, to 30 percent. If the shipments supplied to Apple are also considered with this amount If we take it, the overall market share of the 5th generation chips [Qualcomm] will reach 59 percent this year.” According to Sharma, the company’s share of the 5G market under ideal conditions will even exceed that if Qualcomm does not face constraints on the supply of primary components in the first half of 2021. According to him, as Qualcomm continues to order silicon tablets based on TSMC’s 5 and 6 nm lithography from the second quarter of 2021, following the lower-than-expected numerical output of Snapdragon 888 chips at the beginning of the year, the supply of 5G processors is expected from the middle resume its growth in the second half of this year. According to Sharma, MediaTek’s use of TSMC’s cost-effective 5G chip portfolio has made the situation such that the company’s share in the fifth generation processor market has almost doubled. to be Along with Qualcomm, MediaTek has nearly two-thirds of the market demand for 5G smartphone chips, while the gap between the two is gradually narrowing.
But while Mediatek shines in the market, the big loser in this competition, at least this year, is HiSilicon. The company that used to market advanced Kirin chips is now under pressure with Unisoc products. In fact, due to the US sanctions against Huawei, TSMC It is no longer able to feed HiSilicon’s supply chain, and as a result, Unisoc is gradually taking over the company’s position as one of the cost-effective Chinese manufacturers. As this emerging company is slowly becoming one of the top manufacturers in the world, and according to a group of experts, after the unveiling of Tanggula’s fifth generation chips, many manufacturers will start using the parts produced by this company.