Exclusive Interview

5G is creating huge opportunities. A major increase in investment has been made and shall continue over the next couple of years in 5G networks, 5G chipsets, and 5G smartphone market. Please comment.

5G technology has the potential of ushering in a major societal transformation in India by enabling rapid expansion of the role of information technology across manufacturing, educational, healthcare, agricultural, financial and social sectors.

Emphasis should be placed on 5G touching the lives of rural and weaker economic segments so as to make it a truly inclusive technology.

Most of the chipset companies are ready with their 5G solutions, which include us too. These companies are ready to cater to the demands of their OEM partners, which depends upon the target market or region.

If we talk about India, India’s mobile networks are, undoubtedly, a success story in terms of population reach and affordability. 5G will be an even bigger opportunity and will touch many economic verticals. But India also faces many challenges in 5G, given that the nature of the network is very different from previous generations and will, therefore, need significant learning and adaptation. Service-provider business models may also change significantly.

Incremental upgrades and trials by telcos with OEMs. Telcos and OEMs are jointly conducting trials and feasibility studies for 4.5G/5G-,based technologies to get better insights on economic performance
and technical challenges of deploying these new techniques.

Voice of mobile operators. Introduction of 5G networks, coupled with mature solutions across NFV/SDN, cloud automation, and IoT networks, is likely to drive more agile and future-oriented networks to support the unrealized business case of existing 4G networks and further give rise to diverse service portfolios.

5G is also expected to provide opportunities for operators to charge a premium for their services, penetrate markets in a shorter time, and drive better customer experience with increased uptake in service, eventually boosting the average revenue per user (ARPU).

India seems to be 3–4 years away from 5G rollout. Please comment on MediaTek’s 5G activities in India. What are the revenues you are anticipating from India?

MediaTek is ready to hit the market with its 5G modems and chipsets. We have recently collaborated with Intel for our 5G modem for PCs. Dell and HP are expected to be among the first original equipment manufacturers (OEMs) to embrace the 5G modem. Our new 5G modem for PCs is based on Helio M70 5G modem, which was introduced earlier this year.

MediaTek has unveiled Dimensity 1000, first 5G mobile SoC in its 5G family of chipsets. The single 5G chip solution, with its integrated 5G modem, is a brilliant combination of advanced technologies packed into a 7nm chip and tuned for 5G performance. The Dimensity series is a culmination of MediaTek’s investment in 5G and a position as a leader driving 5G development and innovation.

MediaTek works with leading cellular operators, equipment makers, and suppliers to verify the market readiness of its 5G technologies, and make it accessible to everyone across mobile, home, and auto.

As far as the Indian market is concerned, India is moving fast to adopt the 5G technology. MediaTek 5G chipsets are ready now, and we are optimistic that India will have its infrastructure and spectrum in place very soon. 5G will open up entirely new platforms of innovation and create a historic opportunity to make the connected world smarter, safer, and more equitable. MediaTek is committed to making high-speed connectivity truly accessible as we help connect the next billions of people and devices, continuing on our New Premium promise.

What is the addressable market size for chips? Please comment with reference to the Indian market and MediaTek’s share.

The Indian semiconductor market’s worth is forecast at USD 32.35 billion by 2025, growing at a CAGR of 10.1 percent between 2018 and 2025.

India is currently developing an electronics system design manufacturing (ESDM) industry, with a base of more than 120 units. About 2000 chips are designed every year in India, per the Department of Electronics and Information Technology (DeitY), with more than 20,000 engineers working on different aspects of chip design and verification.

With the launch of Make in India, a government initiative for job creation and skill enhancement in 25 sectors of the economy, the ESDM industry is expected to benefit from investment proposals worth Rs 10,000 crore (USD 1.5 billion) within the next couple of years. India is an ideal location for global R&D centers because of the skilled yet low-cost workforce compared to that found in the US and Western European countries. India ranks third, globally, for its abundance of scientists and technicians.

Bangalore is quickly emerging as a hub for innovating start-ups in the semiconductor arena. The government’s initiatives are supporting access to funds, training, and partnerships – including domestic and international market networks.

The state government of Karnataka is also working with the India Electronics and Semiconductor Association (IESA) to develop an ecosystem that fully supports the ESDM sector and semiconductor manufacturing throughout India.

Our global smartphone business is around 35 percent to 40 percent of our portfolio, and we have a very vibrant platform outside of smartphone including the intelligent home business that includes products powered by MediaTek like TVs, voice assistant devices (VADs), smart speakers, connectivity solutions like Wi-Fi, routers, and set-top boxes. Globally, we are the number one chip supplier in the smart speaker and TV markets. Some product examples include Amazon Echo products (VAD), where we hold 59 percent of market share. Amazon Fire Stick is also a market leader in its segment. While smartphones get a lot of attention, we have a strong cross-platform business based around mobile, home, and auto.

Please elaborate on the orders you are executing currently.

Right now, we are focusing on 5G as it is the next big thing which, is going to change the consumer experience and most of the much talked about technologies like AI, IoT, or AI IoT are going to change the market scenario for solution providers and OEMs as well. Apart from this, we have a stronghold on the smart TV, and VADs are also gaining momentum across the globe.

Moving forward, what is your marketing strategy?

MediaTek is a diversified company having solutions for every product – whether it’s Amazon Fire Stick, voice assistant device, automotive solution, smartphone, or laptop. Being an SoC company, we work hand in hand with our OEM partners as per their product requirement and marketing strategy.