MediaTek will become Huawei’s largest processor supplier of mobile phones 5G chip shipments to see 42 million

Huawei’s Heath Semiconductor could have been able to supply about 80 per cent of its handsets, but the situation has changed so much recently that it has had to find a spare tire for its phones. MediaTek is expected to become Huawei’s largest supplier of mobile phone chips, with 42 million 5G SoCs shipped this year. The number of MediaTek chips it has purchased this year is reported to be 300 per cent higher than it was in the previous year, and MediaTek is evaluating whether it has enough resources to meet Huawei’s needs.

MediaTek will become Huawei's largest processor supplier of mobile phones 5G chip shipments to see 42 million

Not only is the volume of purchases soaring, MediaTek’s chips will also enter the high-end mobile phones, Huawei used to only use MediaTek chips in low-end 4G phones, this year may be a large number of high-end 5G chips.

For the rumored cooperation with Huawei, MediaTek has previously stated that a number of domestic mobile phone manufacturers have a good and long-term cooperative relationship, no matter which partner, the company is committed to chip performance research and development, to help end-users can enjoy the high-end and even flagship model can bring the user experience, thereby promoting the popularity of 5G mobile application experience.

How much does MediaTek really can make from the partnership? Industry analysts say MediaTek is likely to become Huawei’s largest chip supplier in the second half of the year, with full-year 5G SoC shipments expected to increase to 42m units.

Not only will it benefit in 2020, but mediatek’s 5G SoC shipments will continue to soar in 2021, with analysts boosting their original forecast of 121 million shipments to 145 million, an increase of nearly 25 million a year, and Huawei will obviously contribute a lot in addition to normal growth, which will also bring mediatek an additional 5.4% profit.

However, MediaTek and Huawei’s official statements are cautious, did not confirm the cooperation between the two sides, MediaTek is not currently adjusting the 2020 revenue guidance.