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Qualcomm & Leadcore Said To Join Forces To Make Low-End Chips: MediaTek in trouble?

by Jed John 7

Recently, the media was awash with news that Xiaomi is teaming up with Leadcore technology to manufacture its own processor dubbed Pinecone processor. That arrangement was said to be so that the Chinese smartphone giant will reduce its dependence on MediaTek and subsequently save some bucks for itself. Xiaomi is arguably one of the largest smartphone makers, occupying the top 3 position globally in 2014, and also one of MediaTeks main patrons.

If that move by Xiaomi did unsettle MediaTek, this latest news would certainly send ripples through the spine of the chipmaker. According to industry sources, Qualcomm and Leadcore are rumored to be in talks about a possible JV partnership which would see them manufacture low-end processors. MediaTek already has a strong hold on the low-end market but with the strength and financial muscle of Qualcomm, that control could easily be broken. Apart from MediaTek another low-end processor manufacturer that needs to be worried is Spreadstrum.

qualcomm

Related: MediaTek Announces Two New High-End Chips – Helio X23 & X27

The move is also a surprise one because Qualcomm chips are presently divided into low-end, mid-range, high-end and flagship product lines which correspond with the Snapdragon 200, 400, 600 and 800 series respectively. Qualcomm’s own low-end share of the market which is quite substantial could also be affected by the said Joint Venture (JV), so one wonders why the company would want to pursue such. Perhaps it is a ploy to put pressure on MediaTek. What purpose? To distract MTK from the high-end market, perhaps. We’ll bring you more details on this if it turns out to be true but for now, take it with a pinch of salt.

(source)

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  • Zero

    And Qualcomm doesn’t realize that Intel would help Mediatek with Spreadtrum and another big alliance is born… nice job Qualcomm.

    • Muhammad Yasir

      That is A nifty way to look at it

      • Lazar Prodanovic

        Muhamed… When will you get to your senses…

        • Muhammad Yasir

          What 😀 ?

    • Lazar Prodanovic

      Lol who ever started cooperation with Intel ended in dark, first it whose a Rockchip & we didn’t heard from them for almost two years and now they are finally back with out Intel of course, now it’s a Spreadstrum & it’s a same story. Leadcore can’t produce a competitive cellular radio and modem standalone so the whole story behind this so could “collaboration” is probably about buying manufactured components from Qualcomm (same way as Apple does) & again probably not for entry lv SoC’s but likely mid range one’s. It’s not a cheapest thing to do but at least their is no market patent dispute problems.

  • Wolvie

    I don’t like mediatek so much because of the quality of their soc sucks big time. But again we need competition from many vendor to keep the price check in balance, because once only 1 vendor monopoly then we cannot see those cheap gadget selling outside anymore.

    So it is time for mediatek to grow up. Don’t just manufacture lowend soc with weak gpu, time to strike back to qualcomm, samsung exynos, and huawei kirin.

    • Muhammad Yasir

      I hope the new generation of mtk CPUs makes u Fall in love with MTK 😀

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