Qualcomm China shipments slashed on US sanctions

MediaTek overtook Qualcomm as the largest supplier of smartphone system-on-chips (SoCs) to China during 2020, an analyst report revealed, with the latter recording a 48 per cent fall in shipments year-on-year partly due to US restrictions on Huawei [1].

A report released by Shanghai-based CINNO Research estimated total shipments for the Chinese market at 307 million units in 2020, down almost 21 per cent year-on-year.

Although not breaking down numbers for each manufacturer, it highlighted the decline in Qualcomm’s shipments along with a 17.5 per cent drop in HiSilicon’s figures, also attributed to the US restrictions.

In contrast, Taiwan-based MediaTek’s shipments showed “explosive growth”, elevating it top spot for the first time.

CINNO Research attributed MediaTek’s rise to support from China’s largest domestic manufacturers, especially for its mid-tier processors.

However, it added: “At the same time, it is undeniable that the series of sanctions imposed by the US on Huawei and HiSilicon also force major manufacturers to seek more diversified, stable and reliable supply sources.”

At the end of 2019 the research company estimated Qualcomm held a 37.9 per cent share of the market, followed by HiSilicon (35 per cent) and MediaTek (17.4 per cent). By end 2020, MediaTek’s share had increased to 31.7 per cent followed by HiSilicon (27.2 per cent) and Qualcomm (25.4 per cent).

[1] https://www.mobileworldlive.com/devices/news-devices/qualcomm-cleared-to-export-4g-chips-to-huawei

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