MediaTek’s September results showed that revenue soared by 60% year-on-year. It is generally believed that this was because MediaTek delivered a large chip order to Huawei before the September 14 deadline. Delivered about 13 million chips to Huawei, worth about 2 billion yuan.
Due to well-known reasons, Huawei has been purchasing a large number of chips from June to September this year and has accumulated inventory, and even increased prices to attract chip companies to supply chips for it, hoping to ensure chip demand in the next year, which has driven global demand for chips. The huge demand for chips has even pushed up the price of memory chips.
South Korea’s Samsung is the world’s largest memory chip company. It has become one of the beneficiaries of Huawei’s large-scale purchase of chips. The semiconductor business including memory chips is Samsung’s largest source of profit. Due to rising chip prices, Samsung’s profit in the third quarter of this year soared 58% year-on-year. %, it can be seen how much impact Huawei’s large purchases of chips have on the global chip market.
MediaTek is one of the three largest independent chip companies in the world. Due to the difficulties encountered by Huawei, Huawei placed a large order of 100 million chips for MediaTek in June this year, but then MediaTek was forced to withdraw on September 14 due to the request of the United States. After that, it will no longer be able to cooperate with Huawei, and naturally it will not be able to complete this large order, but it is also working hard to deliver as many chips to Huawei as possible before September 14.
In order to ship back chips from Taiwan, China before the deadline, or even charter a plane to transport chips to Taiwan, China, it is estimated that MediaTek urgently delivered about 13 million chips to Huawei during this time, thus achieving a substantial increase in performance.
The chips supplied by MediaTek to Huawei have effectively alleviated the dilemma of Huawei’s chip shortage. Since June this year, Huawei has released a number of mobile phones using MediaTek chips, and some mobile phones that used Huawei HiSilicon chips before have also switched to MediaTek chips. It seems to show that Huawei has stockpiled a lot of MediaTek chips.
Huawei’s experience has also caused shock to other Chinese mobile phone companies. Since the third quarter of last year, Chinese mobile phone companies have reduced their purchases of Qualcomm chips and greatly increased their adoption of MediaTek chips. As a result, MediaTek’s share of China’s mobile phone chip market It continued to rise, changing the trend of continuous decline since the second half of 2016.
Due to the massive purchase of MediaTek chips by Huawei and other Chinese mobile phone companies, MediaTek’s share in China’s mobile phone chip market has risen sharply. Some analysts said that in the third quarter, MediaTek’s share of China’s mobile phone chip market has reached 38.3%, surpassing Qualcomm and ranking first. This is the second time that it has beaten Qualcomm in the Chinese mobile phone chip market after beating Qualcomm in the second quarter of 2016.
Qualcomm, the world’s largest mobile phone chip company, is of course jealous of Huawei’s large-scale purchase of MediaTek chips. However, due to US restrictions, it could not supply chips to Huawei and failed to get a share. It is reported that it is actively applying for a license from the United States to supply chips to Huawei.
In the third quarter, Huawei’s aggressive purchase of chips in the global market was a stimulant for the market, bringing a lot of revenue to many chip companies around the world. However, analysts believe that as Huawei’s purchases come to an end, the prices of some chips may decline. , The price of memory chips will drop significantly, and Samsung’s revenue may also decline as a result.
For MediaTek, in order to compete with Qualcomm, it has to enhance its technical strength and enhance its brand reputation. Although Chinese mobile phone companies have increased their adoption of MediaTek chips, Chinese mobile phone companies are still more willing to use Qualcomm’s chips in flagship phones. Chip, MediaTek needs to make a breakthrough in the high-end chip market.