MediaTek company at the end of 2021 showed revenue in the amount of $17.6 billion is a record result. Compared to the previous year, this figure increased by 53%.
According to Counterpoint Technology Market Research, MediaTek’s sharp revenue growth is due to the rapid development of 5G and Wi-Fi 6 technologies. In addition, investments in energy-saving solutions are bearing fruit.
In the current quarter, MediaTek’s revenue is projected to rise by 2-10% compared to the last quarter of 2021, amounting to $4.7-$5.1 billion. This should be facilitated by the launch of the flagship mobile processor Dimensity 9000. Smartphones running it are in preparation by such major developers as Oppo, Vivo, Xiaomi and others.
Analysts believe that according to the results of the current quarter, MediaTek will become a leader in the smartphone processor market with a share of 39% in unit terms. Second place goes to Qualcomm with a score of approximately 29%.
According to Counterpoint Technology Market Research forecasts, in 2022 the share of 5G devices in the total mass of smartphones sold will reach 54%, or approximately 800 million units. MediaTek will continue to actively invest in related technologies.
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MediaTek Records Strong Revenues. Mid-teens Growth Expected Through 2025
- Mediatek has guided long-term revenue growth, but most revenues will still due to smartphones. It will need to look for new growth areas either by investment or merger to remain competitive with Qualcomm, which is diversifying into Automotive, IoT, RF etc.
- Mediatek’s mmWave SoC has been certified by a key global operator and will be in mass production in 2H 2022. It will help OEMs to trickle down mmWave capability into lower price tiers and will increase competition for Qualcomm, which is already on its third generation mmWave antenna modules.
- MediaTek has design wins in the Automotive segment, with infotainment applications. It also has the potential of adding 5G modems and IoT modules with companies such as Quectel, Fibocom, etc. Right now, these are not big revenue drivers, but a couple of years down the line will drive significant volumes.
- Notebooks/PC: With 5G modems, Wi-Fi 6/6E, Kompanio chipsets (for Chromebooks) it gained in the notebook segment in partnership with Intel and AMD.
- Another area for growth is Consumer Premises Equipment (CPE) for global operators using both 5G modem; and Wi-Fi chipset in the applications like Fixed Wireless Access (FWA) etc.
- Extended Reality (XR) is a focus segment for MediaTek which will drive revenue. According to Counterpoint’s Extended Reality headset forecast; shipments will grow about 10x from 11Mn units in 2021 to 105Mn in 2025.
- MediaTek is investing in the core technology to drive growth, like 5G modem with low latency, mmWave support, next-gen. Wi-Fi, 6G, security IP etc.