Qualcomm monopolizes China's 80% 4G chip supply

China's mainland 4G applications began to start, in the 4G mobile phone chip market, Qualcomm, MediaTek, etc. also launched a fierce contest. However, a research report pointed out that due to the small number of 4G chip manufacturers in the mainland, in the first half of this year, Qualcomm monopolized 80% of the market share, while in the high-end market, MediaTek is still unable to compete with Qualcomm.

The research department of Taiwan's "Electronic Times" released this report on the market structure of the mainland 4G chip.

According to the report, Qualcomm is currently the world's leading manufacturer of 4G (LTE) chips. Since 2013, it has provided chip solutions for multiple markets including China.

In mainland China, LTE services are launched later than most developed countries due to factors such as regulatory policies and license issuance.

It is said that in mainland China, the restrictions imposed by the domestic 3G standard TD-SCDMA and the multi-mode support policy have resulted in fewer manufacturers entering the upstream and downstream of the LTE chip industry in mainland China. This led to the centralization of the market.

Qualcomm is currently the largest supplier of LTE chips in China. In the first half of this year, Qualcomm is expected to occupy 80% of China's LTE chip market.

In China's 4G market, Qualcomm is currently pushing the Snapdragon 400 series chips. Because of its high cost performance and relatively "friendly" pricing, it has achieved high market penetration in the Chinese market.

In the third quarter of this year, Qualcomm will release the entry-level 64-bit Opteron 410 series chips, which will accelerate the share of Qualcomm's 4G chips.

For another mobile phone chip maker, Marvell, the company's LTE chip launch time is basically the same as Qualcomm, but it is limited by the size of the business and the support staff. In mainland China, Marvell is unable to provide technical support services similar to Qualcomm, while at the same time, the cost of parts for its chip products is high. Currently, Marvell has fewer 4G chip customers in China than Qualcomm.

Although the two companies launched 4G chips almost at the same time, Marvell's chip sales in China are far weaker than Qualcomm.

At the same time, MediaTek is still experiencing rapid growth in the 3G chip market. In the second quarter of this year, MediaTek's quad-core and eight-core 3G chips surged in sales and have become the company's most important source of revenue contribution.

At present, MediaTek has independently developed LTE baseband chips and introduced related solutions to the market. However, the market demand for MediaTek chips and substantial delivery may not be launched in the third quarter of this year.

For MediaTek, its mobile phone chips have always had an advantage in the entry-level market. But in the third quarter of this year, in the entry-level chip market of 4G, MediaTek may be robbed by Qualcomm's 32-bit and 64-bit chips.

"Electronic Times" research department pointed out that in order to compete with Qualcomm for the 4G chip market, MediaTek may be forced to come up with a price war strategy - that is, the same performance of the chip, its offer is lower.

In the high-end 4G chip market, MediaTek still has no plans on 64-bit 4G chips. From the performance point of view, MediaTek positioned high-end MT6589 (32-bit) chip, and can compete with Qualcomm Snapdragon 801/805 chip, but in the 64-bit field, MediaTek has no corresponding products and Qualcomm will be listed on the 64-bit 808/ The 810 chip competes.


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