When it comes to the global smartphone AP (Application Processor)/SoC (System on Chip) chipset market, Mediatek is the leader with predictions of capturing 37% of market share in 2021.
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Qualcomm Takes 2nd Place
It benefits in the first half of this year from its rival Qualcomm, coming in 2nd at 31%, which is facing a supply shortage of RFICs (radio-frequency integrated circuits) from Samsung’s texas facility ravaged by disruptive winter storms.
Another factor is the smaller output of 5nm wafers which Mediatek does not use which is another disadvantage for Qualcomm.
Mediatek’s Advantage
It has also benefited from the American sanctions on Huawei phones which run on its HiSilicon unit.
Some of the biggest Android smartphone makers in the world are Mediatek’s customers which when combined account for 35% of worldwide smartphone shipments.
These vendors include Xiaomi, Oppo and Vivo.
Mediatek is currently Taiwan’s 2nd biggest company with a market value of $62 billion.
Other Significant Players
Apple and Samsung occupy the 3rd and 4th positions with 16% and 8% respectively.
HiSilicon stands to lose the most in this race as it is now out of the top 5 contenders.
Its position is being replaced by the Chinese Unisoc famed for its uber affordable chipsets.
Future Trends
The 5g SoC market is displaying new trends as dedicated 5G chipsets are gaining popularity.
Qualcomm should recover in the second half of the year once it has addressed its production bottlenecks.
The competition for the top spot is as intense as ever as the top 3 brands are predicted to have little edge over each other in market share terms.
Furthermore, nearly 9 out of 10 smartphones are powered by a chipset from either Qualcomm, Apple, or Mediatek which beats out Samsung with its Exynos chips.
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