MediaTek, the largest smartphone processor manufacturer at least in terms of quantity, is starting earlier than expected a reduce the production of 4G processors. The coronavirus pandemic is apparently accelerating the trend towards chips 5G. And in fact this will be the future. But it is not just something that hangs in the air, but a real announcement that the Taiwanese giant has started sending to its customers, especially in China. The news comes to us from DigiTimes.
For DigiTimes, MediaTek would have started to downsize the production of 4G chips: the future of smartphones will increasingly be 5G
We've been through a time when MediaTek was the rear to a period in which we speak only of her. The Taiwanese processor giant has announced to all its Chinese (but not limited to) customers that 4G processors are about to run out and that the market will inevitably change in the future. As we know, the chip crisis rages and continuing to build processors upon processors when the end of the 4G era is ending is a waste of materials and money.
According to the data in the hands of DigiTimes, MediaTek would like to use the quotas at its disposal that come from giants such as TSMC for the production of chips with 5G modems. The reason for this is the desire to ensure availability of these more modern platforms and to achieve targeted revenue growth for 2021. If we consider that MediaTek became the first producer in the world, we will also understand how the smartphone market will change.
If the trend of the Taiwanese company continues as expected, in a few years the 4G smartphones will no longer be there. According to previous reports, smartphone makers must wait between 20 and 30 weeks to order MediaTek chips, depending on the model. Qualcomm also has similar, indeed worse, problems.
