“Following Qualcomm and MediaTek, even Xiaomi jumps in”… This market predicted a cataclysm

The AP (Application Processor) market, known as the ‘brain of the smartphone’, is experiencing a period of upheaval. This is because Chinese manufacturers such as Huawei and Xiaomi are challenging the global mobile AP market, which is divided between MediaTek and Qualcomm.

According to foreign media such as the South China Morning Post (SCMP) on the 26th, it was reported that the 3-nano chip (nm, 1 nano is 1 billionth of a meter) being developed by Xiaomi has reached the final stage before mass produce. If Xiaomi eventually manages to mass produce the AP 3-nano, it will be the first AP 3-nano produced by a Chinese company.

Xiaomi AP is known to have similar performance to Qualcomm’s 1st generation Snapdragon 8. Compared to Qualcomm’s recent introduction of the next generation chip 4th generation Snapdragon 8, it is about 3 generations behind in terms of performance.

However, the industry believes that with Chinese smartphone companies entering the mobile AP market one after the other, the market landscape could change significantly next year.

Currently, the global AP market is divided, with MediaTek, a Taiwanese company, standing out in low-cost mobile AP and Qualcomm in mobile AP for premium smartphones.

According to the global market research company Counterpoint Research, MediaTek was first with a market share of 40% in the first quarter of this year. It was followed by Qualcomm (23%), Apple (17%), Unisac (9%), and Samsung Electronics (6%).

What stands out is the market share trend of the Chinese manufacturer Huawei. HiSilicon, Huawei’s fabless subsidiary (which specializes in semiconductor design), is increasing its presence in the mobile AP market with its 7nm AP, ‘Kirin 9000s’, in the first half of this year.

The market share, which was around 0% from the second quarter of 2022 to the second quarter of last year, has risen to 1% in the third quarter, 3% in the fourth quarter, and 3% in the first quarter of this year. .

Additionally, if all goes according to plan, Xiaomi is also expected to mass-produce mobile APs using the 3nm process starting next year. There is an analysis that the mobile AP market will become more competitive with the participation of Xiaomi.

In addition, the current market leaders MediaTek and Qualcomm are also releasing new products with significantly upgraded performance as next-generation products.

MediaTek set out to cement its market share by unveiling the ‘Dimensity 9400’ manufactured at TSMC Taiwan’s 3-nano process in Shenzhen, China, on the 9th. Qualcomm held ‘Snapdragon Summit 2024’ in Hawaii, USA on the 21st (local time) and unveiled the ‘Snapdragon 8 Elite’ manufactured in the 3-nano process.

An industry official said, “This year, the performance of Chinese smartphone manufacturers, led by Huawei, stood out among traditional smartphone powerhouses such as Apple and Samsung.” He added, “As they moved beyond the mid to low price smartphone market, they have recently expanded into the premium smartphone market “The company even used its own designed AP and started pursuing technology with AP market leaders,” he explained.