Qualcomm’s Popularity Played A Dirty Trick With It: Xiaomi And OPPO Turn To MediaTek


chip shortage

Qualcomm is the world’s most popular mobile chip manufacturer. Of course, the Taiwanese MediaTek is jumping through hoops to beat its main rival, but it is still lagging behind. However, Qualcomm’s popularity played a dirty trick with it. At present, the world is in a period of ‘chip shortage’, and the situation is still getting worse. As you guess, Qualcomm suffers the most.

Qualcomm

At the end of last year, the automobile industry and the game console industry had insufficient production capacity due to chip shortage. At the beginning of this year, the prices of processors, graphics cards, and memory in the PC market rose wildly. But even such a turn of events didn’t help the manufacturers in launching more products … because there is not sufficient amount of chips.

The smartphone industry faces the same problem.

Qualcomm, the chip giant in the Android smartphone camp, has pointed out that the current delivery time for all materials has been extended to more than 30 weeks. Moreover, the delivery cycle of CSR Bluetooth chips has reached more than 33 weeks.

MediaTek Could Win In This Chip Shortage Situation

Today, some media reported that Qualcomm was affected by the shortage of wafer foundry production capacity. The supply of its 5G mobile chips was blocked. So some companies such as Xiaomi and OPPO have turned to MediaTek chips.

According to reports, the proportion of Xiaomi using Qualcomm chips has dropped from the previous 80% to 55%. A large number of orders is going to MediaTek now.

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If the news is true, the stock of Xiaomi smartphones with Snapdragon 888 will sharply drop. On the contrary, the models using MediaTek chips will gradually increase.

In addition, there is news that MediaTek’s revenue this quarter will reach 100 billion NT dollars ($3.54 billion).

As for the chip shortage, the Qualcomm CEO Cristiano Amon  has previously told the media that the current high demand for chips for technology products has put tremendous pressure on the semiconductor industry.

That’s why MediaTek is launching new flagship chips one after another. The Dimensity 1000 series SoCs successfully replace the Qualcomm chips. And it is worth noting that the MediaTek Dimensity 2000 processor may be shipped early in the Q2 quarter.

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