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Taiwan’s MediaTek upbeat about continued performance in 2022

Fabless chipmaker accounts for 38% of global smartphone chipset market

MediaTek chip. (MediaTek image)

MediaTek chip. (MediaTek image)

TAIPEI (Taiwan News) — Fabless Taiwanese chipmaker MediaTek is expecting to see continued demand for its chips throughout 2022.

MediaTek is hoping that improvements in integrated circuit (IC) design, continued success in China, and Taiwan’s established semiconductor manufacturing ecosystem will drive performance amid the continued global chip crunch, according to DigiTimes.

The Taiwanese chipmaker has considerably narrowed the technology gap between itself and Qualcomm — which focuses on mid-level to high-end smartphones — during the transition from 4G to 5G. Sources told DigiTimes that MediaTek is catching up to the U.S. mobile chip supplier in terms of design capability for 5G chipset solutions.

MediaTek’s focus on providing more affordable chipset alternatives in the 5G era has greatly helped sales in China, the world’s largest smartphone market. Chinese smartphone makers like Oppo, Vivo, and Xiaomi have all adopted MediaTek chips in their devices.

Taiwan’s existing chipmaking infrastructure also plays an important role, allowing MediaTek to gain capacity support from domestic foundries and backend semiconductor manufacturing companies, DigiTimes cited sources as saying.

The report also added that MediaTek is expected to introduce 5G chipsets made using Taiwan Semiconductor Manufacturing Co’s (TSMC) 6nm process for medium- and high-end devices in China. The Taiwanese company is also planning on using TSMC’s 5nm and 4nm nodes to fabricate its 5G mmWave chips.

MediaTek currently controls 38% of the global smartphone chipset industry, while Qualcomm accounts for 32% of the market, according to Counterpoint Research. MediaTek’s Dimensity 700 series has been performing well in the 5G volume space, while the Helio P35 and G80 are popular in the LTE segment, the market research firm said.