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MediaTek is Raising the Chip Prices by 15%

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Taiwanese chipmaking giant MediaTek is reportedly raising the prices for some of its smartphone chips that are in high demand.

According to GizmoChina, the 4G LTE-enabled chips saw a sharp price rise since the primary focus of chipmakers is usually the 5G smartphone market. 4G chips now hold a smaller stake in the market, but the demand for 4G smartphones is still high.

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The company has increased prices by 15 percent for 4G chips, and 5 percent for 5G enabled chips. The primary reason for the hike in price is due to the increased cost of production from TSMC’s foundry.

Apart from MediaTek, Qualcomm is also expected to raise the prices of its chipsets.

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MediaTek has managed to retain its top spot with a sizable 38 percent market share in the global application processor (AP) market for smartphones in Q2.

According to market research firm CounterPoint, MediaTek continued to lead the global AP market in this quarter, with its Dimensity 700 series dominating the 5G market. On the other hand, the Helio P35 and Helio G80 were quite popular in the 4G LTE segment.

The report also marks the sizeable growth of MediaTek in recent times as the company’s latest Dimensity chipsets have become increasingly more popular across both mid-range and entry-level smartphones.

Meanwhile, chipmaker Qualcomm arrived second with a market share of 32 percent. The company saw a notable market share due to its processor’s popularity in the high-end 5G market, the report said.

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