5G has been a popular topic over the last decade whenever talk turns to smartphones.
And with smartphone series like the iPhone 12, Samsung Galaxy, and RealMe V3 featuring the latest 5th generation telecommunication delights, companies that manufacture the phone components have benefited from the rise in 5G demand.
Since early last year, the stock price of major world chip manufacturers Taiwan Semiconductor Manufacturing Company (TSMC), and integrated circuit (IC) design company MediaTek, have been on the rise, a stark contrast to stock markets plagued by worries over the pandemic.
TSMC, now ranked the 10th biggest firm in the world, attributes its rapid growth of capital to its four leading clients Apple, Qualcomm, NVIDIA, and MediaTek, producing either 5G smartphones, or related components.
While Apple and Samsung both issue their latest series smartphone equipped with 5G technology, mass consumers in Asia often turn to Chinese smartphones for a cheaper alternative.
As a result, at present, chip orders to semiconductor companies in Taiwan are soaring on the back of increasing demand in the smartphone market.
Sales of the IC design company MediaTek have seen a substantial increase due to huge orders from Chinese smartphone companies.
Major IC design company Hisilicon, owned by Huawei and previously the biggest supplier in China, was restricted by the ban the U.S. government applied to limit any non-U.S. chip manufacturers from using U.S. technology in providing its chips.
As such, Huawei has turned to expand its capacity within its domestic sphere by relying on local know-how, in the meantime outsourcing part of its business to MediaTek.
A 2020, report by Counterpoint even suggests that affordable Android phones will be the future of the smartphone market.
Compared to Qualcomm, however, MediaTek’s approach has been to opt for a price-down strategy, aiming to provide smartphones to the lower price tier; a future in real terms now demonstrated in the shape of the RealMe V3, – cheapest 5G smartphone in the world currently powered by MediaTek.
Where the market goes from here remains to be seen, but watch this space.