Chipmaker MediaTek has been recognized as the leading System on Chip (SoC) vendor by the close of 2023. Known for developing the fastest smartphone processor currently available, MediaTek's Dimensity 9300 and other chipsets have secured a significant share in the smartphone market.
MediaTek's Dominance in the SoC Market
A recent report from Canalys sheds light on MediaTek's ascent as the preferred SoC vendor in 2023. In the fourth quarter of the year, MediaTek sold 117 million units of chipsets, surpassing Apple's 78 million and Qualcomm's 69 million units. Noteworthy competitors in the smartphone SoC sector include Google, Samsung, and Unisoc. MediaTek's smartphone shipments for the year exhibited a 21% year-on-year increase, amounting to $23 billion in revenue. Despite this, Apple's revenue from shipments reached $87 billion, overshadowing MediaTek. Qualcomm also surpassed MediaTek with shipments valued at $30 billion in 2023.
Market Dynamics and Competitors
The Canalys report reveals a 2% decline in Qualcomm's SoC shipment revenue from the previous year. Samsung experienced a significant 44% decrease in earnings from its Exynos chips, suggesting potential for improvement with chips from other providers in Q4 2023. This decline accounted for approximately 40% of Qualcomm's returns and 25% of MediaTek's figures for the quarter. Notably, Xiaomi emerged as a key buyer of Qualcomm chipsets, representing 25% of purchases. While Xiaomi also contributed about 20% of MediaTek chipsets shipped in Q4 2023, Samsung stood out as the primary customer for the vendor.
Emerging Players and Growth Prospects
Huawei made a substantial impact in the market in 2023 as per the Canalys report. With a remarkable 5,121% surge, the Chinese OEM shipped 7 million units and generated $7 billion in revenue, largely fueled by its new Kirin SoCs. Unisoc also demonstrated strong potential for growth, with a 24% increase in revenues year-on-year totaling $3 billion, alongside 27 million units shipped. The primary clientele of Unisoc included brands like Transsion, Realme, and Lenovo. In contrast, Google's performance in SoC shipments was lackluster with estimated revenues of $2 billion and 3 million units sold, possibly due to the exclusive nature of its Tensor chipsets designed solely for Pixel phones.
