Sources say Xiaomi will purchase more mobile SoCs for its smartphones from MediaTek as Qualcomm is unable to meet market demand and orders from all customers amid a global semiconductor shortage.
According to UDN, Qualcomm’s production lines are fully loaded, but the company is unable to cope with all orders. Samsung has also faced production delays as its Austin plant has yet to resume production due to the extreme cold. The supply chain of 5G-enabled SoCs has been disrupted, with finished product delivery times of around 30 weeks for Xiaomi, Oppo and others.
Against this backdrop, the Chinese tech giant Xiaomi is turning to MediaTek for help, aiming to cut the share of Qualcomm’s SoCs from 80% to 55%. MediaTek’s revenue is expected to rise to a new high of $ 15.3 billion due to the influx of new orders, which will also lead to a rise in the share price.
Qualcomm previously announced that the industry’s SoC shortage will continue through at least the end of this year, with the current plight stemming from an imbalance between supply and demand.
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