For those who are new let’s start by explaining what is a SoC; A SoC can be called the brain of your smartphone, it detects and everything going with your mobile device. It has multiple functions and application in a small chip and therefore saves space and is cost-effective. To learn more click on the link below https://engmag.in/what-is-a-system-on-a-chip-soc/
The competitive dynamics of supply chain of smartphone SoC are rapidly transforming for all leading vendors such as Apple, MediaTek, Qualcomm, Samsung and few more. Recent reports have suggested a 3% growth in the upcoming years considering launch of 5G devices and the supply/demand ratio being less than 1.
After evaluating the market and considering the present situation, it is observed that MediaTek is set to capture 36-38% of the market while it’s rival vendor Qualcomm has 30% hold of the market and rest being distributed among Apple, Samsung and few more companies.
Observing the chart above it can be seen Qualcomm is trailing behind MediaTek however Mr Gai stated that “However, we believe Qualcomm to bounce back strongly in H2 2021, firstly by securing greater capacity at TSMC to boost its 5G-centric tiered Snapdragon portfolio. Secondly, taking key steps to improve the supply of PMICs and RFICs should alleviate the supply constraints in the coming months. This will allow Qualcomm to maintain its leadership in the 5G SoC market and overall market share of 31% still growing annually.”
Further highlighting the contribution and value of leading edge notes and their respective security capacities Mr. Gai further added “The leading-edge nodes, including 7nm, 6nm and 5nm, will account for almost half of the smartphone shipment volume in 2021. These leading nodes are mainly for 5G smartphone models, as advanced nodes (e.g., 11/12/14nm at TSMC and Samsung) will serve the mainstream 4G LTE chipsets in 2021.”
Further moving on and considering the upcoming 5G smartphone SoC market share it has been determined that MediaTek and Qualcomm will dominate 67% of the market share.
Clearly MediaTek is leading and dominating the current market this might not have been the situation if Qualcomm hadn’t faced supply restraints in the beginning of 2021. However, Qualcomm will be looking to regain it’s supposed position over the SoC market.
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Source: Counterpoint Research
