MediaTek open to sourcing chips from India: Senior executive

Generative AI capability could also drive smartphone growth in India and the rest of the world this year.

Taiwanese fabless chipset maker MediaTek could look at sourcing chips from India, if any of its partners decide to use India to build semiconductor fabrication, a senior executive said.

“We source our wafers from multiple foundries and partners in multiple countries. There are a smaller number of companies that are building wafer fabs…if our partners are building production facilities in India, there is no reason we couldn't use them,” Finbarr Moynihan, Vice President, Corporate Marketing, MediaTek, told Moneycontrol at the sidelines of the Mobile World Congress (MWC) 2024.

The MWC 2024 is being held in this Spanish city from February 26 to 29.

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‘Bullish on India’s smartphone market’

He said that MediaTek is bullish on India’s smartphone market, adding that the country will shape the global smartphone industry in 2024, focusing on 4G to 5G migration through affordable 5G devices.

He added that generative AI capability could also drive smartphone growth in India and the rest of the world this year.

“Mainstream devices will drive the majority of volumes at affordable price points, bringing 5G to other price points. We have Dimensity 7000 and 6000 series for the entry-level and will be workhorses in volumes, and 4G to 5G migration is accelerating,” Moynihan said. “We will see high-end and entry-level growth simultaneously in India,” he said.

Notably, MediaTek’s US-based rival, Qualcomm, is also looking to tap the opportunity in the entry-level 5G smartphone segment with its latest chip for a sub-$99 5G smartphone, which will be available by the end of this year. It is working with Jio to launch a smartphone based on this new chipset.

“The entry segment will be important for everyone… At the end of the day, we leave the device prices to telcos and original equipment manufacturers (OEMs), if they want to subsidise,” he said.

‘Have nearly 50 percent market share in India’s smartphone market’

MediaTek is hopeful that its focus on 5G across price segments, especially the entry-level, will help it grow its market share. “We already have nearly 50 percent market share in India’s overall smartphone market. More than anyone, we are the volume player in the 4G market, which is still a huge market globally, and in the 5G transition as well,” he said.

Moynihan cautioned that the smartphone market's rapid volume growth year-on-year is over. “Last year was a down year. This year, there will be modest growth globally.”

But he added that despite prominent trends of longer upgrade cycles, flourishing refurbished market trends like Gen AI could drive the upgrade cycle.

Gen AI smartphone applications

“We are seeing early adoption of some Gen AI smartphone applications. We think devices running Gen AI will create new experiences for users. The initial adoption of those platforms in China, the main market for high-end phones, has been very encouraging. We are optimistic about that in India as well.”

MediaTek is focused on building chipsets with the “right level” of acceleration for AI. “We are ensuring we have the hardware and software to deliver that capability. We have also worked with Meta's Llama 2 and Google Gemini to optimise models running on our platforms. We are also working with players in China for large language models (LLMs).”

He added that OEMs or handset makers will use these LLMs for smartphone applications. “OEMs are driving this aggressively.”

(The reporter is in Barcelona to attend the Mobile World Congress at the invitation of Xiaomi.)