2017 is looking to be a rough year for Taiwanese chipset maker MediaTek as reports from Taiwanese media have revealed that the company’s chipset shipments for the first quarter of 2017 fell to only 100 million with only a slight rebound in the second quarter at 110-120 million shipments.
While 100 million initially seems like a large number, for comparison, the company shipped over 480 million chipsets in 2016, a number the company will have a hard time to top or even match this year.
The major reason for the drop in the company’s shipments is the shift of many of its China-based customers to rival chipset manufacturer Qualcomm. These companies include Meizu, Xiaomi, Oppo and Vivo, who have all shifted a portion of their orders from MediaTek to Qualcomm.
China was one of the biggest sources of orders for MediaTek and the loss has significantly affected their shipments. An example is the company’s latest flagship chipset the Helio X30 which has yet to be adopted by any big manufacturers.
And since a sizable chunk of chipset orders are usually made during the first half of the year, the second half of the 2017 is looking to be even more difficult for MediaTek. As it stands, the company is set to lose a large portion of its market share in China, which may fall to below 40% this quarter.