In years of "practice", MediaTek seems to have begun to reap rewards. On July 31st, MediaTek held the Q2 quarterly law meeting of 2020 and announced its operations from April to June this year.

According to the report, MediaTek achieved revenue of NT$67.603 billion (about 16.1 billion yuan) in the second quarter, a year-on-year increase of 9.8%; and achieved net profit of NT$7.31 billion (about 1.74 billion yuan), a year-on-year increase of 12.4%.

According to the MediaTek Law Conference, it said that the revenue this quarter increased compared with the previous quarter, mainly due to the launch of new 5G smartphone products and the increase in sales of some consumer electronic products such as WiFi 6, power management chips. The reporter believes that 5G smartphones will be The biggest contribution.

A Taiwan analyst told reporters: "MediaTek's revenue status at the beginning of 2020 is already good, especially at the most severe time of the epidemic. In the second quarter, both revenue and profit have achieved year-on-year growth. I think this is mainly because The effective control of the epidemic in the Chinese mainland market has led to a steady recovery of economic activities, followed by the 5G SoC entering the stage of heavy shipments, coupled with the continuous increase of products such as the Internet of Things."

MediaTek CEO Cai Lixing once said: "Although the current epidemic has brought many uncertainties to global economic growth, MediaTek has strong anti-risk capabilities through its diversified layout in 5G, custom chips, and automotive electronics. There will be steady and sustained growth year-on-year."

Facts show that 5G will inevitably be a major market growth driver in 2020, and 5G smart phones will be the first wave of popular products, which will inevitably increase the shipment of 5G SoCs.

According to CINNO Research's monthly domestic mobile phone sales monitoring data, in the first half of 2020, the sales of smartphones in the domestic market affected by the epidemic was only about 140 million, a sharp drop of 24.7% year-on-year. Although the domestic epidemic has been effectively controlled and economic activities have resumed, consumer confidence is still insufficient. According to Counterpoint research analyst Zhang Mengmeng, domestic smartphone manufacturers and operators are currently reducing the prices of 5G mobile phones and 5G packages, hoping to increase the sales of 5G smartphones. In the second quarter of 2020, 5G mobile phones accounted for 1/3 of China's total smartphone sales, ranking first in the world.

In November 2019, MediaTek has taken the lead in releasing the Dimensity 1000 series and Dimensity 800 series of 5G SoCs. They all adopt integrated baseband design, which can further reduce power consumption and cost, and lock the main push of the domestic market. The -6GHz frequency band and the use of TSMC's 7nm process have excellent performance in the performance and power consumption of 5G networking.

When the time comes to 2020, MediaTek Dimensity 1000 series and 800 series have gradually been introduced to the 5G models of brand manufacturers, including 5G products of major market brands such as OPPO, vivo (iQOO), Huawei (Honor), Xiaomi (Redmi), etc. . For example, Redmi 10X, iQOO Z1, Honor Play4, Honor X10 Max, Huawei Enjoy 20 Pro, Huawei Enjoy Z 5G, Honor 30 Youth Edition and many other models are equipped with MediaTek Dimensity series of chips, and they have received High attention from the market.

Although from the perspective of the first half of the past, the epidemic still exists on a global scale, which affects the demand for replacement in the mobile phone market, but from the current product release rhythm and stocking plans of mobile phone manufacturers, it is clear that the mobile phone market is recovering more and more. Obviously, everyone is optimistic about the arrival of the long-standing consumer explosive power. Judging from the current trend of phone replacement, 5G mobile phones have become the first choice for most. It is believed that MediaTek’s revenue growth momentum in the second quarter will continue until at least the third quarter or even the end of the year.

“The commercial scale wave of 5G is obviously unstoppable, but what cannot be ignored is that MediaTek is still doing well in the 4G long tail effect. MediaTek’s 4G products still contribute a lot. At present, MediaTek’s Helio P95, P75, G80 and other products are basically locked overseas. Market." The Taiwan analyst said.

In addition to the smartphone SoC business, MediaTek has also made gains in fields such as ASIC and automotive electronics. In 2019, MediaTek adjusted its organizational structure and formed three major business groups: wireless communications, smart devices and smart homes.

MediaTek executives have said that with the scale of 5G mobile phones starting in 2020, the wireless communication business will grow faster. In the next 1 to 2 years, the mobile phone business will perform more prominently, and the diversified product technology and business layout will make MediaTek will go more steadily in the future.

In the field of smart home, MediaTek’s smart TV business has achieved more than 60% market share in the global market, and its TV chip market share ranks first. As domestic and foreign TV manufacturers have launched 8K TVs, MediaTek’s 8K smart TV solution S900 will be a good choice for the industry.

In terms of smart devices, MediaTek mainly focuses on "3A", namely ASIC, Auto and AIoT. Among them, the annual shipments of the ASIC business have shown multiple growth. For example, the world's first 7nm 112G SerDes IP was launched last year, and the MT3729 solution for data centers and 5G infrastructure was recently launched, and mass production will be realized in 2020.

In the auto market, MediaTek’s Autus automotive chip solutions have been adopted and mass-produced by many well-known automakers. At the same time, MediaTek has successfully entered the global Tier1 market. Domestic brands Geely, Changan, and SAIC have adopted MediaTek’s Autus vehicles. With chip solutions, the future performance of the automotive electronics market is bullish.

In addition, enterprise-level business is also an important part of MediaTek’s revenue, such as enterprise-level and ultra-large-scale data centers, ultra-high-performance network switches, 4G/5G infrastructure, artificial intelligence and deep learning applications, and new types of computing that require ultra-high-frequency bandwidth and long-distance interconnection. Applications, etc. are MediaTek’s products and technology layout.

Although the global economy fell into a downturn under the epidemic in 2020, MediaTek achieved impressive results in the first half of the year, setting a record high in the past. The basic reason is that it has grasped the large number of 5G smartphones in the mainland China market where the epidemic is well controlled. This window of opportunity, in the final analysis, is more of MediaTek’s years of investment in technology and the diversified layout of the industry. With the gradual recovery of the economy, MediaTek's future performance seems to be more and more "stable".