As chip war flares up, MediaTek readies to beat Qualcomm in India’s premium 5G space

5G

Taiwanese chipset major MediaTek is all geared up to take on its American rival Qualcomm with high-end 5G systems in the premium 5G market as more Chinese handset makers turn to it for their flagship smartphones.

MediaTek is the top mobile chipset vendor with a 51 percent share of the overall 5G market in India in the first half of this year, followed by Qualcomm with a 32 percent slice of the pie.

In the premium or Rs 30,000 and above segment, however, Qualcomm is the leader with a 34 percent share, followed by Apple with 27 percent, Samsung with 24 percent, and MediaTek with 14 percent.

"MediaTek powers around 54 percent of the smartphones sold in India, and in the sub-Rs 30,000 segment, this share rises to 64 percent. Although our 5G premium share is currently lower, it is expanding rapidly. Given the success we have seen in the overall Indian market, I don’t see why we shouldn’t aim for a similar share in the high-end market. It may not happen in one year, but it’s growing," said Finbarr Moynihan, vice-president of corporate marketing, in an interaction with Moneycontrol.

Not just in 5G, MediaTek is the largest chipset supplier in India’s smartphone market and is leveraging the shift from 4G to 5G devices and premiumisation trend further to bolster its presence in the 5G space, especially Rs 30,000-plus segment.

According to Counterpoint Research, MediaTek dominates the sub-Rs 30,000 5G smartphone segment, where it secured a 64 percent market share in the first half of the calendar year. Qualcomm followed with a 31 percent share.

In this segment, MediaTek’s market share increased by 23 percentage points to 64% in the first half of 2024, compared to 41% a year ago. Qualcomm’s share dropped by 11 percentage points from 42% during the same period.

Analysts noted that the sub-Rs 30,000 price segment accounts for the majority of 5G smartphones entering India, helping MediaTek corner substantial market share. They attributed MediaTek’s growth to its competitive pricing and strong partnerships with Chinese brands like Oppo, Vivo, Xiaomi, and Realme, which collectively control about 75 percent of India's sub-Rs 30,000 smartphone market.

Historically known for its success in mass-market 4G and now 5G with affordable and mid-premium chipsets, MediaTek is now betting on the premium segments, capitalising on the ongoing premiumisation trend in India.

The analysts expect MediaTek to quickly gain share in the above Rs 30,000 segment in India as more Chinese smartphone brands adopt the Dimensity 9000 series to launch premium devices. "MediaTek remained the top 5G chipset player in India during the first half of 2024, contributing more than half of the 5G smartphone shipments. With its Dimensity 9000-series and its newly launched Dimensity 9400 chip, it has the potential to increase its share in the premium segment and give competition to other players," said Prachir Singh, analyst at Counterpoint.

Globally, MediaTek also holds a dominant position in the mobile SoC space, competing with American Qualcomm, Chinese UNISOC, and South Korea’s Samsung. “We have been the number one globally since 2020, with our share ranging between 35 percent and 40 percent. Clearly, in the Indian market, we are far ahead of the global average. We are also the top volume supplier of 5G SoCs globally. The trend is moving in the right direction for India,” Moynihan said.

“The Dimensity 9000 series has been a strong performer for MediaTek. Last year, the series generated $1 billion in revenue. To put that into context, the company’s total revenue was just under $14 billion. These numbers are expected to grow in 2024, with a 70% year-on-year increase. We anticipate closing in on $2 billion in revenue this year, driven by our growing 5G market share and the shift towards flagship devices,” he said.

Responding to Qualcomm’s $100 5G chipset for the Indian market, Moynihan said the company has been offering its Dimensity 6000 series chipsets for the entry-level 5G segment for several years. “We don’t see any particular competition from Qualcomm’s $100 5G chipset,” he said.

Anku Jain, managing director of MediaTek India, stated that the company’s 5G chipsets are available in smartphones priced below Rs 8,000. “Our chipsets support both standalone and non-standalone 5G technologies,” he added.

MediaTek also plans to ramp up hiring in India to support its smartphone market growth and aid other growing businesses in automobiles, computing, and the Internet of Things (IoT). It will hire more engineers and designers to work on global chips.

The company employs over 1,000 engineers across its three locations in India—Bangalore, Noida, and Mumbai. About 90 percent of MediaTek’s local talent is dedicated to global R&D, focusing on chip design and product development for international markets, while the remaining staff handles local support functions.