Big tech companies like Apple are also facing the shortage of processors. At the same time, the name of Taiwan’s chipset maker MediaTek has been added to this list. MediaTek has increased the price of its chipset by up to 15 percent.
At present, smartphone companies were facing a shortage of chipsets. Smartphone chip maker companies Qualcomm and AMD are already facing challenges regarding chipset manufacturing. Along with this, giant tech companies like Apple are also facing a shortage of processors. At the same time, the name of Taiwan’s chipset maker MediaTek has been added to this list. MediaTek has increased the price of its chipset by up to 15 percent. In such a situation, the price of MediaTek chipset-based smartphones may increase soon. In such a situation, it can be expensive for customers to buy a smartphone with a MediaTek chipset in the coming days.
This appears to be in line with other processor manufacturers, who faced a severe demand crunch during the early phase of the pandemic-led lockdown in 2020 before witnessing a steep surge in demand since mid-2021. A report in Telecom Talk says the price hike is imminent though Mediatek has not officially announced it yet.
The report quoted unnamed officials to suggest that most of the hike was limited to the 4G LTE enabled chips at a time where the primary focus of Mediatek was on the growing demand from 5G smartphone makers. The company is having to divert some of its attention to 4G chipsets given the continued demand for such devices from consumers in regions like India where 5G services are yet to roll out.
Qualcomm’s new Snapdragon 898 chipset will be launched soon
This is at a time when the next generation Snapdragon 898 chipset is to be launched by Qualcomm by the end of November. According to the report, up to a 15 percent increase in the price of Mediatek based 4G chipset can be registered. While the manufacturing of Mediatek based 5G chipset has registered an increase of up to 15 percent. Samsung’s 4nm process has been used in Snapdragon 898 chipset. Due to which the processor will consume less battery.
4G LTE enabled smartphone prices will be affected
The sources stated that 4G LTE enabled chips saw a sharp price rise since the primary focus of chipmakers is usually the 5G smartphone market. 4G chips now hold a smaller stake in the market but demand for 4G smartphones is still high in markets such as India where 5G networking is still not commercialized. Furthermore, the order of 4G handsets has caused the supply of LTE-enabled phones to surpass the demand. Similarly, the brand’s rival, Qualcomm, is also expected to raise the prices of its chipsets, although, this has yet to be confirmed.