MediaTek boosted by mid-tier 5G chip sales

Supplying chips for low- and medium-tier 5G devices helped MediaTek extend its shipments lead over Qualcomm at the summit of Counterpoint Research’s application processor and system-on-chip (SoC) shipments table in Q2.

The analyst company also pointed to MediaTek experiencing fewer supply constraints [1] in the period for a jump in its market share.

Counterpoint Research placed MediaTek’s share at 43 per cent, up from 26 per cent in Q2 2020. Qualcomm’s share was down to 24 per cent from 28 per cent.

Although year-on-year comparisons show MediaTek overtaking Qualcomm, this happened in Q3 2020 and has been the case in the subsequent quarters.

Counterpoint Research noted the share achieved by the shipment market leader was a record for it, with sales in the low- to mid-tier 5G segment aided by strong LTE SoC shipments.

Analysts added Qualcomm dominated 5G baseband modem shipments with a 55 per cent market share, compared with 30 per cent for MediaTek. In Q2 2020, their shares were 29 per cent and 11 per cent. respectively.

The company tipped Qualcomm to improve its supply and earnings moving forward, having “realigned its component sourcing strategy” after securing additional capacity from TSMC in late Q2.

[1] https://www.mobileworldlive.com/blog/blog-us-chip-shortage

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