Qualcomm lost its leading position in the chip market, MediaTek suddenly surpassed in surprise

While Qualcomm is still a formidable force and one of the dominant chipmakers, it looks like the big upheavals in 2020 have turned things around. Qualcomm was no longer the biggest chip maker, while Taiwanese semiconductor firm MediaTek suddenly rose to the top of the global chip market.

In other words, MediaTek has become the number one chip maker in the world. This is the latest aggregated data and statistics from global research firm Omdia shared with Digitimes.

Specifically, MediaTek sold no less than 351.8 million smartphone chips last year. As a result, MediaTek accounted for 27.2% of the total market share, up sharply from 17.2% in 2019.

Not surprisingly, MediaTek’s boom in chip sales comes at a time when chip demand is skyrocketing as firms need to increase orders for electronics to meet demand “stay at home to avoid outbreaks.” ” of the user.

The Covid-19 pandemic seems to have significantly changed the way people work, study and entertain people around the world throughout the year 2020. Because of having to stay at home a lot, the demand for entertainment and study will increase. and the demand for new equipment to meet work and entertainment also increased.

Although sales of new electronic devices soared, it also brought with it another problem that the supply of chips could not meet. This is also the main reason why chip supply scarcity occurs throughout 2020 and is expected to end only in 2022.

Statistics data for Q3 / 2020 shows that MediaTek has risen to the top of the chip market

Needless to say, MediaTek’s impressive performance is largely attributable to its massive sales and major customers, including the world’s largest smartphone makers.

For example, Xiaomi has increased 223% in orders for MediaTek chips compared to 2019. While OPPO, MediaTek’s second largest customer last year, ordered and used MediaTek chips on 55.3 million devices.

MediaTek’s increase in chip orders is also attributable to its tendency to focus on mid-range smartphones, US sanctions on Huawei and partnerships with Samsung, Xiaomi and Honor, Counterpoint said. .

MediaTek’s market share in Xiaomi products has tripled over the same period last year. MediaTek has also effectively utilized the void left by the US ban on Huawei that prevented the Chinese technology company from accessing chip sources from US partners.

MediaTek’s low-cost chips combined with TSMC’s high-capacity fabrication line provide more options for OEMs to quickly fill the void left by Huawei. Previously, Huawei also bought a large amount of chips from MediaTek before the US ban took effect

Refer to Softpedia