MediaTek eyes premium Android phone market with new 5G chip

MediaTek chips are noticed on a building board on the MediaTek sales space all the way through the 2015 Computex exhibition in Taipei, Taiwan, June 3, 2015. REUTERS/Pichi Chuang

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Nov 18 (Reuters) – Chip fashion designer MediaTek Inc (2454.TW) on Thursday launched a brand new 5G smartphone chip that it hopes can be utilized in premium-priced Android smartphones, a marketplace Qualcomm Inc (QCOM.O) lately dominates.

The Hsinchu, Taiwan-based corporate mentioned its new Dimensity 9000 chip would be the global’s first to make use of its production spouse Taiwan Semiconductor Production Co’s (2330.TW) “N4” chipmaking procedure, which is helping makes chips smaller and sooner. MediaTek mentioned it’ll even be the primary smartphone chip to function a formidable new computing core from Arm Ltd known as the Cortex X2.

Together with Qualcomm and Samsung Electronics Co Ltd (005930.KS), MediaTek is one in all handiest 3 companies on the earth that makes 5G smartphone chips. The fourth primary participant – Huawei Applied sciences Co Ltd (HWT.UL), which additionally made its personal telephones – was once pressured out of the marketplace by way of U.S. sanctions.

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Huawei’s go out spark off a scramble by way of Android smartphone makers to seize marketplace proportion vacated by way of the Chinese language logo. MediaTek already counts lots of the contenders for that marketplace proportion, corresponding to Xiaomi Corp (1810.HK), Oppo and Vivo as shoppers, however a lot of the ones manufacturers use MediaTek for his or her low and mid-tier units and depend on Qualcomm for higher-end fashions.

David Ku, MediaTek’s leader monetary officer, mentioned the 9000 chip was once the primary in what’s going to be a sequence of chips aimed toward persuading the ones shoppers to change to the use of MediaTek of their flagship units.

“We wish to have an excessively robust military to march into the section,” Ku instructed Reuters. “One product isn’t sufficient – that is our place to begin.”

MediaTek hit $10 billion in income for the primary time final yr, and Ku mentioned it expects to hit $17 billion in income this yr. He mentioned that whilst 4G smartphone chips once in a while offered for $10, 5G chips can promote for $30 to even $50.

“The No. 1 riding issue is truly the a lot greater (moderate promoting worth) because of the 4G to 5G transition,” Ku mentioned.

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Reporting by way of Stephen Nellis in San Francisco; Modifying by way of Dan Grebler

Our Requirements: The Thomson Reuters Trust Principles.

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