5G drives all-time-high baseband revenue in Q3 2020

The global cellular baseband processor market posted a robust 27 percent year-over-year to reach an all-time-high $7.1 billion in Q3 2020, according to Strategy Analytics’ Handset Component Technologies service report.

This Strategy Analytics’ research report “Baseband Market Share Tracker Q3 2020: 5G Drives All-Time High Revenue” finds that Qualcomm, MediaTek, HiSilicon, Samsung LSI and Intel captured the top-five cellular baseband revenue share spots in Q3 2020. Qualcomm maintained its baseband market share lead with 40 percent revenue share in Q3 2020, followed by MediaTek with 22 percent and HiSilicon with 19 percent.

• 5G baseband shipments showed over ten-fold growth in Q3 2020.
• For the first time, 5G baseband processor revenue overtook 4G baseband revenue. 5G basebands accounted for over 50 percent of total baseband revenue in Q3 2020.

Sravan Kundojjala, Associate Director, commented, “After experiencing seven consecutive quarters of shipment decline, Qualcomm finally returned to growth in Q3 2020, thanks to 5G and iPhone design-wins. Revenue from 5G chips accounted for over 60 percent of Qualcomm’s total baseband revenue in Q3 2020. Despite intense competition in the 5G baseband and radio chipset market, Qualcomm increased its 5G share to 56 percent in Q3 2020. Qualcomm is well-situated to continue its 5G momentum into 2021 with its multi-tier portfolio.”

Christopher Taylor, Director of the Strategy Analytics RF & Wireless Components service, added, “MediaTek made headway in the 5G market and more than doubled its 5G baseband shipments on a sequential basis in Q3 2020. MediaTek continued to gain share in the 4G baseband market and captured the top unit share spot in Q3 2020. MediaTek’s good run will continue through 2021. Strategy Analytics, however, cautions that MediaTek should not repeat its 4G mistakes, which resulted in rapid price and margin erosion. MediaTek needs to maintain an aggressive product mix to keep margins healthy, which would allow the company to re-invest further in R&D.”

Stephen Entwistle, Vice President of the Strategy Analytics Strategic Technologies Practice, stated, “HiSilicon saw its baseband shipments decline over 20 percent in Q3 2020 driven by trade restrictions. Strategy Analytics believes that Huawei may need to sell HiSilicon assets to a third party to ensure HiSilicon’s survival given the continued uncertainty. Qualcomm, MediaTek and Samsung LSI will capture the market share left by HiSilicon in 2021.” Strategy Analytics