In Q3 of 2020, 5G drives baseband chip revenue to a record high

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The latest research report released by Strategy Analytics Mobile components Technology Services, “Q3 Baseband Market Tracking in 2020, 5G Drives Revenue to Hit Record Highs” pointed out that in Q3 2020, the global cellular baseband chip processor market revenue increased by 27% year-on-year to US$7.1 billion. A record high.

The report pointed out that in Q3 2020, Qualcomm, MediaTek, HiSilicon, Samsung LSI and Intel accounted for the top five in the share of cellular baseband revenue; Qualcomm ranked first with 40% of baseband revenue share, followed by MediaTek (22%) ) And HiSilicon (19%).

In Q3 of 2020, 5G baseband chip shipments increased by more than ten times. The revenue of 5G baseband chip processors exceeded 4G for the first time and accounted for more than 50% of the total baseband revenue.

Sravan Kundojjala, deputy director of Strategy Analytics, said: “After seven consecutive quarters of shipment declines, Qualcomm finally resumed growth in Q3 2020, thanks to its 5G and iPhone customer orders. Q3 2020, 5G chips Revenue accounted for more than 60% of Qualcomm’s total baseband revenue. Despite fierce competition in the 5G baseband chip and wireless chipset market, Qualcomm increased its 5G share to 56% in the quarter. Qualcomm will continue its development in 2021 with its diverse product portfolio. 5G has strong growth momentum.”

Christopher Taylor, Director of Radio Frequency and Wireless Component Services at Strategy Analytics, added: “In Q3 2020, MediaTek has made progress in the 5G market, and its 5G baseband chip shipments have more than doubled month-on-month. MediaTek continues to gain share in the 4G baseband market. Ranked first in shipment share; MediaTek’s good performance will continue until 2021. However, Strategy Analytics said that MediaTek should not repeat its 4G mistakes, which will lead to a rapid decline in prices and profits. MediaTek needs to maintain a radical product portfolio, In order to maintain a good profit margin, this will allow the company to reinvest in research and development.”

Stephen Entwistle, Vice President of Strategic Technology Practice Services at Strategy Analytics, said: “Due to trade restrictions, HiSilicon baseband chip shipments in Q3 2020 will fall by more than 20%. Strategy Analytics believes that, given the continuing uncertainty, Huawei may need to replace HiSilicon’s Assets are sold to third parties to ensure the survival of HiSilicon. Qualcomm, MediaTek and Samsung LSI will occupy the market share left by HiSilicon in 2021.”

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