Shulou(Shulou.com)11/24 Report--

CTOnews.com April 12 news, TechInsights reported that Q4 in 2022, the global cellular baseband chip market sales and revenue dropped significantly compared with the same period last year and month-on-month. All leading baseband companies showed negative growth in shipments and revenue. The decline can be attributed to OEM inventory adjustments, as well as the overall macroeconomic environment. Despite the weakness in the second half of the year, earnings in the baseband chip market rose 7.4% year-on-year to $33.4 billion in 2022 (CTOnews.com Note: currently about 230.126 billion yuan). Qualcomm, MediaTek, Samsung LSI, Ziguang Zhanrui and Intel are among the top five revenue shares in 2022.

Here is an analysis of the main points:

In 2022, Qualcomm expanded its lead with 61% of revenue, followed by MediaTek (27%) and Samsung (6%).

Revenue from 5G baseband chips increased by 23%, mainly driven by high-end 5G chips from Qualcomm and MediaTek.

In 2022, the increase of 5G baseband combination increased the average baseband selling price by 24%. The penetration of 5G in the baseband market is still very low.

Shipments of baseband chips for non-mobile applications (such as the Internet of things, cars, mobile tablets, etc.) account for more than 20% of total baseband shipments. Shipments of mobile and non-mobile baseband declined in 2022, but non-mobile baseband performed better than mobile phones.

Qualcomm led the baseband chip market with 61% of revenue in 2022. Driven by Samsung Galaxy S22 customer orders and iPhone momentum, the company's baseband revenue grew 18% in 2022. The company's Chinese customers OPPO, Xiaomi and vivo are all in inventory crisis. However, Qualcomm still dominates the high-end market and outperforms MediaTek.

Despite the difficulties faced in the second half of the year, MediaTek increased its share of 5G shipments in 2022. Due to the weakness of Chinese customers, MediaTek's baseband revenue growth slowed in the second half of the year. In recent quarters, the company has shifted its focus to the high end of the market with some success. However, because of its high dependence on mid-end products, the cost was higher in the second half of 22 years.

Although Samsung LSI's overall baseband shipments declined, its 5G baseband shipments increased in 2022, driven by mid-range customer orders. In 4G, the company also increased shipments of the Exynos 850s; Samsung was hit hard in 2022 when its parent Samsung Mobile transferred high-end orders to Qualcomm.

Ziguang Zhanrui continued to maintain good momentum in the non-mobile sector, but lost its momentum in the mobile sector, especially in 2G and 3G. MediaTek faces fierce competition in the field of low-end 4G chips. However, the company is catching up in 5G, but has not yet won in terms of large customer orders.

Despite the challenging demand environment, non-mobile phone manufacturers Altair (Sony), Sequans, GCT, Nordic Semi and ASR Micro all performed well in 2022. Driven by the increase in cellular connectivity rates for applications such as the Internet of things, cars, tablets, laptops and fixed-line wireless access, the non-mobile phone market will grow in 2023 and beyond.

Driven by the increase in 5G penetration, the baseband chip market grew for the third year in a row in 2022, the report said. However, due to inventory adjustments by OEM vendors, all leading suppliers face challenges in the second half of 2022. Inventory digestion will continue into the first half of 23 years. The first half of the year is often a period of seasonal weakness for mobile companies, and the second half of 23 could lead to much-needed growth. In addition, TechInsights believes that demand for midrange smartphones is likely to pick up by the end of 2023, which could disrupt the 5G pricing environment.

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