MediaTek was founded in 1997. It was an early semiconductor chip design company that invested in UMC Group. It is a major supplier of wireless communication and digital media chip integration solutions. It ranks among the world's top ten semiconductor chip factories. Originally used as optical storage for DVD and Blu-ray control. Chip makers, as the market matured, focused on wireless communications, high-definition televisions and mobile devices, and even actively deployed Internet of Things in recent years, the automotive and AI fields have achieved significant results. The company misjudged China in 2015. Data base frequency upgrade speed, China Mobile pushed high-order Cat.7 data specifications, major customers OPPO, Vivo switched to Qualcomm, plus high-pass and spread before and after the Spreadtrum competition, resulting in constant price competition, leading to a decline in gross margin since 2015, 2015 In the fourth quarter, the gross profit margin fell below 40%, and the annual revenue performance also showed no sign of improvement.
However, after two years of adjustment, the company has achieved great success. After optimizing and optimizing the cost structure for the baseband, P23 and MT6739 chip sales have achieved good results last year. CEO Cai Lixing vowed to take back the mobile phone chip market and lose its share. The new mobile phone regains customers. Adopted, in the 4th quarter of last year, the gross profit margin has stabilized.
In the first half of this year, MediaTek’s flagship P60 chip has successively reported successes. It has won OPPO, Meizu’s big single, and has previously vowed to regain lost market share. In addition, overseas markets have also made good progress, attacking Micromax with Xiaomi, OPPO and local mobile phone makers. As India recovers business opportunities, the legal person expects the shipments of mobile phone chips to increase significantly in the second quarter, which is expected to show double-digit growth compared with the previous quarter.
The industry pointed out that in the first half of the year, non-independent camps introduced new mobile phone and client inventory requirements, and demand for mobile phone-related chips recovered at the end of March. In the first half of the year, the main pusher of the P60 chip was its excellent cost structure, and moderately profitable customers. The second quarter of smart phones. Shipments of chips exceeding expectations are expected to be strong. It is expected that the shipments of mobile phone chips in the second quarter will look at more than 100 million units, and the gross profit rate in the second quarter is also expected to rebound to more than 37% quarter by quarter. In addition, the mid-low growth rate will continue to increase. For the mobile phone chip, the gross profit rate for the whole year is expected to rise back to 38%, or even 40%, and the annual revenue will increase by 6% to 10%. The annual shipment volume will be approximately 460 million units, an increase of 5.4% year-on-year.
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In addition, recently, ZTE Corporation, a Chinese telecommunications equipment and smart phone factory, has been granted an export ban by the U.S. Department of Commerce, and U.S. enterprises will not sell any component to ZTE for the next seven years. Qualcomm and Bo will provide ZTE chipsets greatly. Affected by the ban, ZTE will push ZTE to start seeking Taiwan-related chip supply. Although MediaTek clearly understands that it will have no impact on business conditions in the short term, it will not benefit, but the market still thinks that Qualcomm is blocked. MediaTek is still the biggest beneficiary.