According to Yahoo News, the latest research report from the Asian Department of Foreign Investment indicates that MediaTek's 5G system single-chip (SoC) market is fragmented and continues to face Qualcomm's competitive challenges. Therefore, the market expectation of MediaTek's 5G prospect seems too optimistic.

Sub-investment foreign investment pointed out that MediaTek's profit margin forecast is very conservative, mainly due to MediaTek's 5G SoC market is fragmented, rival Qualcomm still has industry leading edge, it still only TSMC a fab partner, and the company is in 5G The market is mainly concentrated in the middle to the low end. Therefore, the target price of MediaTek was raised from 277 yuan to 306 yuan, and the rating was maintained at a reduced price.

Asian foreign investors pointed out that it is roughly estimated that by 2020, the global market for 5G mobile phones will reach 160 million to 200 million, of which Apple, Samsung, Huawei and Xiaomi will ship 65 million, 35 million, 50 million and 10 million respectively. . However, it should be noted that the above brands and MediaTek's MTK are not relevant.

If it is assumed that the total number of 5G mobile phones in 2020 will reach 200 million, the remaining brands shared by MediaTek and Qualcomm will be 40 million. However, due to Qualcomm's leading 5G SoC product planning, it is assumed that Qualcomm and MediaTek will split 40 million units in a 7:3 ratio. It is estimated that by 2020, MediaTek's 5G mobile phone shipments will only reach approximately 12 million. unit.

At the same time, the Asian Department of foreign investment pointed out that there are some voices that China's mainland will benefit MediaTek in order to popularize and push the mid-range 5G smart phone. However, it is expected that in the early stages of 5G, the mainland will give priority to resources for infrastructure and industrial applications that require low latency and high data broadband, rather than smartphones. In other words, the market's expectation for MediaTek 5G seems too optimistic.