MediaTek Became World’s Biggest Smartphone Chip Supplier With 351.8 Million Shipments: Report

Technology

Qualcomm is not the number one smartphone chipsets supplier in the world, according to a recent Omdia report. The American chipmaker was overtaken by MediaTek as the number one smartphone chip supplier in 2020. This comes after the December 2020 report from Counterpoint Research indicated that MediaTek was the biggest chip supplier in Q3 2020. Now, the Omdia report says that the Taiwanese chipmaker topped Qualcomm in the total number of shipments across the year. The report says that MediaTek shipped 351.8 million smartphone chipsets in 2020 – an increase of 113.8 million over 2020. It now holds a global market share of 27.2 percent, as compared to 17.2 percent in 2019. According to the report, the growth in MediaTek’s business comes due to the company’s focus on entry-level and mid-range smartphones. According to the Omdia report, brands like Xiaomi, Oppo, and Samsung aided MediaTek’s growth in 2020.

The report said that Xiaomi was the company’s biggest customer and reportedly shipped 223% more smartphones with the company’s chips as compared to 2019. Oppo was MediaTek’s second-biggest customer in 2020, shipping 55.3 million devices with MediaTek chipsets in 2020 as compared to 46.3 million in 2019. In 2020, a combined 83.19 million MediaTek-powered smartphones were shipped by Oppo and Realme, according to Omdia. Samsung also saw demand for MediaTek smarphones grow by over 250 percent in 2020 over 2019. Omdia expects MediaTek to see further growth in 2021, as after the US government’s ban on Huawei, Huawei also started using MediaTek chips, Omdia said. As a result of leading brands utilising MediaTek technology, other brands also followed diversifying their respective supply chain.

“Mostly important for MediaTek’s growth in 2020 was in key price segments for MediaTek as the world was impacted by the pandemic in the first half of 2020 and the smartphone market recovered in the second half of the year,” said Zaker Li, senior analyst of wireless devices components & devices at Omdia. “Low-end and mid/low-end devices were popular with buyers. MediaTek’s ability to compete present an alternative to Qualcomm chips in this price segment helped the company grow.”