Bloomberg: China’s 4G Expansion to Benefit Mediatek and Qualcomm

31 Mar

4G technology is undoubtedly becoming more prominent in China, and with domestic telecom providers such as China Mobile offering notable discounts on its 4G/LTE compatible smartphones, industry watchers are beginning to see a bright future for two major chip companies: Qualcomm and Mediatek.

Citing the information provided by US-based research firm Evercore Partners, Ian King and Tim Culpan of Bloomberg News perceive Qualcomm to be the only company in a “pole position” to benefit from China Mobile’s 4G push, given that it is the “dominant supplier” of mobile processors that “offer faster speeds on more networks.”

The two emphasize, additionally, that in China, the US-based company is among “the only providers of five-mode LTE chips which can connect to more networks that are in phones currently on sale.” The other, notably, is Marvell Technologies, another well known brand in China.

For the Taiwan-based chip manufacturer Mediatek, whose China market share is growing at a respectable rate thanks to the affordability of its high performance chips, the future prospects appear to be equally bright. The company currently owns an estimated 35%-40% of the Chinese smartphone chip market, and is looking to target nearly 80% of its “10 to 15 million” 4G/LTE chips towards China, Bloomberg’s sources said.