Taiwan’s “Economic Daily News” reported on June 29: The new US ban on Huawei has made MediaTek’s 5G chips stand out. The supply chain revealed that because of the significant increase in 5G chip shipments, MediaTek has chased orders to TSMC in three waves, with an additional monthly investment of more than 20,000 wafers, covering 7-nanometer and 12-nanometer, and also queuing to cut into 5-nanometer.
For the three additional orders of MediaTek, a sudden emergence of a new army, with a sentence to describe the development situation of MediaTek this year, that is: “We are in harmony with each other!”
The US Department of Commerce announced on May 16 that it would amend its export control regulations to restrict foreign companies that use U.S. wafer manufacturing equipment from supplying some wafers to affiliate companies such as Huawei or HiSilicon. A new round of sanctions imposed by the United States on Huawei’s HiSilicon chips directly lead to a reshuffle of the market share of 5G mobile phone chips in the future.
Due to the suppression of sanctions by the United States, Huawei’s HiSilicon Kirin chips cannot be mass-produced, and the inventory of Kirin chips is insufficient. In the future, Huawei will only be able to purchase a large number of MediaTek Tianji series chips. In the future, Huawei will release a number of mobile phones equipped with Tianji series processors.
2. U.S. sanctions suppress and alert other Chinese mobile phone manufacturers
The suppression of Huawei by the US government has led other mobile phone manufacturers to seek the Plan B plan to “get rid of” Qualcomm’s dependence and thus more choose MediaTek chips.
The trade-offs are long and short. When Chinese mobile phone manufacturers gradually get rid of their dependence on Qualcomm, it is a huge loss for Qualcomm.
In the 3/4G era, Qualcomm Snapdragon processors have always been the first choice for Chinese mobile phone manufacturers, and even Huawei has to purchase Qualcomm chips. Qualcomm occupies a large share of mid-to-high-end smartphone chips in the Android market, but with the rise of Huawei Hisilicon chips, Qualcomm’s monopoly chip market capacity has weakened in recent years.
On June 28, the latest report of the market survey agency Strategy Analytics showed that the global cellular baseband processor market revenue reached US$5.2 billion in the first quarter of 2020, a year-on-year increase of 9%.
From the manufacturer’s ranking, Qualcomm ranked first with 42% revenue share with its second-generation 5G products; followed by Hisilicon with a revenue share of 20%; MediaTek ranked third with a 14% share; fourth, The fifth is Intel and Samsung LSI.
However, entering the 5G era, with the addition of Huawei and MediaTek, Qualcomm 5G chips have not performed very well in the mid-to-high-end 5G chip market.
Second, geographical advantage:
MediaTek’s reputation in the domestic mobile phone market in the past few years was not good, because the user experience of the original ten-core processor was so poor that it gave market share to Qualcomm in vain.
After a few years of silence, MediaTek seized the 5G tuyere and officially announced the return with 5G chips in the second half of 2019.
In the first half of 2020, MediaTek successively launched Tianji 800, Tianji 820, and Tianji 1000+ three 5G chips, covering the mid-range, mid-end, and high-end markets.
The chips of the Tianji series have reached the mainstream level in the industry both in performance and experience. In particular, the chip of Tianji 820 surpasses the HiSilicon Kirin 820 and Qualcomm Snapdragon 765G. It is very successful in the mid-to-high-end field.
MediaTek’s Tianji 5G chips have a good start in Q1 in 2020, but MediaTek chips will eventually be tested by the market.
Since 2018, the Sino-U.S. trade war and science and technology war started, and the United States has initiated a series of actions against Chinese high-tech companies to combat sanctions, first ZTE and then Huawei. The control list, on June 11, 2020, the MATLAB mathematics software of Harbin Institute of Technology was deactivated, and these sanctions have further prompted mobile phone manufacturers to be alert.
For a long time, MediaTek has cooperated with Chinese mobile phone manufacturers. Now, in order to reduce dependence on Qualcomm and prevent the future situation of chip supply from the United States, it is an inevitable choice to find other partners.
So far, the Tianji series has been recognized and adopted by many domestic mobile phone manufacturers. Headphone manufacturers such as Huawei, Xiaomi, and VIVO have already released several mobile phones equipped with MediaTek chips.
In summary, the rise of MediaTek has benefited from various factors such as “the right place, the right people, the right people, and the people”.