At MWC 2018, MediaTek not only showcased the development and roadmap of its latest smartphone chip platform, P60, but also highlighted its strategies for 5G across different frequency bands. Chen Guanzhou, the general manager of MediaTek, made his debut at the event, sharing insights with media outlets, including micro-network, on MediaTek’s strategic vision for the next one, three, or even five years.
The 4G smartphone market is entering a "final war," according to industry analysts. Gartner recently reported that global smartphone sales declined year-on-year for the first time, with a 5.6% drop in Q4 2017 compared to the same period in 2016. Analysts attribute this decline to new user habits, longer replacement cycles, and a lack of innovation. In response, Chen Guanzhou emphasized that MediaTek focuses on enhancing user experience through features such as power efficiency, faster startup times, improved speed, and frame rates. For example, the P60 chip benefits from 12nm technology, which offers better power savings than older 14/16nm nodes. The new architecture of the CPU+GPU+APU design also contributes to energy efficiency.
Regarding AI, MediaTek's NeuroPilot platform not only enhances existing content but also improves overall performance, making previously challenging tasks more efficient. Chen Guanzhou clarified that he does not view the current stage as a "final war" for 4G. Instead, the commercialization of 5G in 2020 is a key goal for MediaTek. While 5G may not replace 3G as quickly as 4G did, the market is expected to have a long tail of up to ten years. Therefore, MediaTek aims to develop products that meet consumer needs over an extended period, targeting longer life cycles for both high-end and budget 4G devices.
In response to rumors about Huawei increasing its use of self-developed chips and Samsung opening its supply chain, Chen Guanzhou stated that product quality remains the top priority. MediaTek has several upcoming products, including the P60, and believes it can win customers based on performance. As a neutral supplier, MediaTek leverages its economic scale and diverse chip offerings to compete effectively.
Looking ahead, MediaTek is focusing on two major trends: AI and 5G. From a customer perspective, Chen explained that AI will evolve in three stages. The first involves enhancing user experiences through applications like APU and dual-lens depth calculations. The second phase includes applying AI to new technologies such as AR, while the third stage will see AI integrated into everyday apps without users realizing it. MediaTek's NeuroPilot platform supports various devices and operating systems, enabling AI capabilities on low-end phones as well.
For 5G, MediaTek plans to launch mobile phone terminals in 2019 and 2020, focusing on productization and meeting customer expectations. Regarding competition in the 5G era, Chen noted that factors like patents and market positioning play a role. While some companies are investing in their own chips for differentiation, MediaTek continues to focus on its strengths in the low-end segment.
In terms of reversing the company’s market position, MediaTek aims to improve gross margins and profitability in 2018. Chen emphasized the importance of maintaining healthy 4G chip development and leveraging the long-tail effect of the P60. Additionally, MediaTek is expanding into growth areas like automotive electronics, data centers, and IoT. The smart speaker market, for instance, is growing rapidly, with potential for expansion into TV and home display markets.
Looking further ahead, MediaTek is exploring opportunities in electric vehicles, autonomous driving, and ASICs. By partnering with large companies, MediaTek can help them develop customized chips using its IP and advanced manufacturing processes. This strategic shift reflects a broader transformation, as MediaTek restructures its teams and organizes its business units to focus on emerging markets.
MediaTek recently reorganized its structure, transforming the Home Entertainment Business Group (HBG) into the Intelligent Product Group (Intelligent BG), now a separate BU focused on automotive and other intelligent applications. This move underscores MediaTek’s commitment to the automotive sector, where it is promoting the "Autus" platform for vehicle communication, infotainment, radar solutions, and driver assistance systems.
Overall, MediaTek is positioning itself for long-term growth by diversifying its product portfolio and adapting to changing market demands. With a strong focus on AI, 5G, and emerging technologies, the company is preparing for the next wave of innovation in the semiconductor industry.
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