US sanctions against Huawei seem to hurt Qualcomm. The Chinese giant previously equipped some of its devices with Qualcomm chips. After launching US sanctions, Huawei focused on chipmaking arm HiSilicon, making it the subsidiary’s number one smartphone chip provider in China in the first half of 2020.

 

 

The new restrictions shattered HiSilicon sales, and Huawei later began using MediaTek on the chip. However, other Chinese manufacturers such as Vivo Oppo and Xiaomi also turned to MediaTek.

These companies seem right to worry about chipsets, as Xiaomi was recently added to the US blacklist over its dubious connection to Chinese military companies. The share of MediaTek chips in the company’s phones has more than tripled compared to the same period last year.

The MediaTek chips are much cheaper than Qualcomm’s processors, allowing Chinese manufacturers to offer users high-performance devices at a much more affordable price.

This not only because of the excellent performance of MediaTek’s mid-range platform, but also after the US sanctions on Huawei and Hisilicon have prompted major manufacturers to seek more diverse, stable and reliable sources of supply. “- CINNO Research.

MediaTek surpassed Qualcomm as the world’s largest smartphone chip maker in Q3 2020, largely due to its popularity in the affordable price ($ 100-250) category and its growth in major markets such as China and India, according to Counterpoint Research. Qualcomm became the largest provider of 5G chipsets for the quarter. The company is expected to regain the top spot in the 4th quarter due to strong demand for 5G-enabled smartphones.

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Qualcomm also announced several 5G-enabled chipsets for mid- and low-end phones last year. This can help chipsets regain Qualcomm’s top position.

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