Reports emanating from the Taiwanese supply chain indicate that semi-conductor manufacturer MediaTek is targeting 60 million 5G chip shipments next year. Although the company refused to comment on the news, previous news from the supply chain noted that MediaTek’s 5G chip has changed the 7nm process of the 5G MT6885 SoC from “general mass production” to “ultra-quick order production” due to customers’ hopes of early shipment. It is expected to be mass-produced before the end of this year.
The Taiwanese industry expects that MediaTek should be able to win orders for some 5G mobile phones from China’s mobile phone brands such as OPPO, Vivo and Huawei. It is reported that the initial evaluation of the average selling price (ASP) per unit of MediaTek’s 5G chip shows it costs about $50 USD, far beyond the 4G single-chip ASP which is about $10 to $12 USD. However, we believe it is still cheaper than the average selling price of Qualcomm’s 5G chipsets.
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MediaTek is extremely optimistic about the Chinese 5G market. Previously, market consulting firm Strategy Analytic believed that China’s 5G mobile phone sales reached 80 million in 2020, and 160 million worldwide. MediaTek CEO Cai Lixing projects that global sales will be around 140 million, while China will account for 100 million which is about 70% of expected 5G phone shipment next year. That could be due to the rapid roll-out of 5G networks by Chinese carriers.
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