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Qualcomm’s chip market share plunges in China after Huawei sanctions; MediaTek takes No. 1 spot

Qualcomm’s Snapdragon 888 chip will probably be utilized in premium Android gadgets that would price over $1000.

Qualcomm

Qualcomm’s market share of China’s smartphone chip market plunged in 2020 as a consequence of U.S. sanctions on Huawei, in accordance with a brand new report.

In consequence, the nation’s home cellular gamers turned to alternate options equivalent to Taiwan’s MediaTek, in accordance with CINNO Analysis.

Final 12 months, 307 million smartphone so-called system on chips (SOC) have been shipped in China, down 20.8% year-on-year, the report mentioned.

SOC is a kind of semiconductor that incorporates many parts required for a tool to work on a single chip, equivalent to a processor. They’re a vital part for smartphones.

Qualcomm’s shipments in China shrank 48.1% year-on-year, CINNO Analysis mentioned with out releasing particulars on the variety of Qualcomm chips shipped. The U.S. big’s market share in China fell to 25.4% in 2020 versus 37.9% in 2019.

MediaTek No. 1

Taiwan’s MediaTek benefited from all that pent-up demand. The chip designer took benefit of Huawei and Qualcomm’s woes, and likewise bought main Chinese language smartphone makers to make use of its chips.

“So far as we all know, (for) OPPO, Vivo and Xiaomi and Huawei, the MediaTek share has elevated rather a lot,” CINNO Analysis advised CNBC in a press release from its analysts.

Huawei is China’s largest smartphone maker by market share, adopted by Vivo, Oppo and Xiaomi.

Many of those gamers make telephones priced on the mid-range however with excessive specs. That is the place MediaTek has carried out properly in gaining share.

The U.S. sanctions on Huawei have additionally compelled different Chinese language gamers to search for alternate options ought to they discover themselves reduce off from the likes of Qualcomm.

“This (is) not solely as a result of (of) the wonderful efficiency of MediaTek’s mid-end platform, but additionally, it’s plain that the U.S. has imposed a collection of sanctions on Huawei & Hisilicon, forcing main producers to hunt extra diversified, secure and dependable sources of provide,” CINNO Analysis mentioned in a press launch.

Xiaomi was recently added to a U.S. blacklist of alleged Chinese military companies, although its unclear if this can have an effect on their capacity to obtain sure parts.

5G market up for grabs

China is the world’s largest marketplace for 5G smartphones. 5G refers to next-generation cellular web, and chipmakers are battling it out for a slice of the pie.

“After the primary 12 months of 5G, let’s take a view of the adjustments in China’s smartphone SOC market. It exhibits that the market sample has modified from a single dominant Qualcomm firm within the 4G period, to a three-party sample of Hisilicon, Qualcomm and MediaTek in 2020,” CINNO Analysis mentioned.

Final 12 months, Qualcomm launched a brand new collection of 5G smartphones chips often known as the 6 collection and 4 collection, which might eat into MediaTek’s market share in China.

“Qualcomm launching 6 and 4 collection 5G chipset will assist to take share away from MediaTek within the quick rising 5G smartphone phase in China,” mentioned Neil Shah, a associate at Counterpoint Analysis.

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