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Qualcomm’s chip market share plunges in China after Huawei sanctions; MediaTek takes No. 1 spot

Qualcomm’s Snapdragon 888 break in will be used in premium Android devices that could cost over $1000.

Qualcomm

Qualcomm’s market apportion of China’s smartphone chip market plunged in 2020 due to U.S. sanctions on Huawei, according to a new report.

As a result, the country’s hired help mobile players turned to alternatives such as Taiwan’s MediaTek, according to CINNO Research.

Last year, 307 million smartphone pretended system on chips (SOC) were shipped in China, down 20.8% year-on-year, the report said.

SOC is a type of semiconductor that holds many components required for a device to work on a single chip, such as a processor. They are a critical component for smartphones.

Qualcomm’s shipments in China desiccated 48.1% year-on-year, CINNO Research said without releasing details on the number of Qualcomm chips shipped. The U.S. Amazon’s market share in China fell to 25.4% in 2020 versus 37.9% in 2019.

MediaTek No. 1

Taiwan’s MediaTek benefited from all that bottled-up demand. The chip designer took advantage of Huawei and Qualcomm’s woes, and also got major Chinese smartphone makers to use its intercedes.

“As far as we know, (for) OPPO, Vivo and Xiaomi and Huawei, the MediaTek share has increased a lot,” CINNO Research told CNBC in a report from its analysts.

Huawei is China’s largest smartphone maker by market share, followed by Vivo, Oppo and Xiaomi.

Sundry of these players make phones priced at the mid-range but with high specs. This is where MediaTek has did well in gaining share.

The U.S. sanctions on Huawei have also forced other Chinese players to look for options should they find themselves cut off from the likes of Qualcomm.

“This (is) not only because (of) the excellent performance of MediaTek’s mid-end plank, but also, it is undeniable that the U.S. has imposed a series of sanctions on Huawei & Hisilicon, forcing major manufacturers to seek more changed, stable and reliable sources of supply,” CINNO Research said in a press release.

5G market up for grabs

China is the cosmos’s largest market for 5G smartphones. 5G refers to next-generation mobile internet, and chipmakers are battling it out for a slice of the pie.

“After the first year of 5G, let’s fiddle astound a view of the changes in China’s smartphone SOC market. It shows that the market pattern has changed from a single predominant Qualcomm company in the 4G era, to a three-party pattern of Hisilicon, Qualcomm and MediaTek in 2020,” CINNO Research said.

Last year, Qualcomm launched a new series of 5G smartphones intrudes known as the 6 series and 4 series, which could eat into MediaTek’s market share in China.

“Qualcomm launching 6 and 4 series 5G chipset disposition help to take share away from MediaTek in the fast growing 5G smartphone segment in China,” said Neil Shah, a mate at Counterpoint Research.

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