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Prices of 4G mobile chips to rise in 2H21

With mobile chip suppliers putting increased focus on 5G solutions, the supply of 4G smartphone chips is being scaled down. Prices of 4G mobile chips will be rising in the second half of this year, whereas 5G chip prices will be falling, according to industry sources.

Chip developers including MediaTek, Qualcomm, Unisoc, Xiaomi and Oppo have all started promoting their latest 5G mobile chips, with MediaTek and Qualcomm having fully upgraded their 5G chip product lineups to cover all different segments.

Lacking sufficient support from wafer foundries, the 4G chip supply has continued shrinking with their prices hiking.

Sources from Chinese handset ODMs also pointed out that demand for 5G smartphones remained robust from mature markets and should double 5G smartphone shipments to the end market every year in the next 2-3 years.

Since many emerging markets are still primarily running 4G, 4G smartphones and related chip solutions are now enjoying higher profitability than before, with the margin of 4G chips having a chance to surpass that of 5G chips in 2021. DigiTimes

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