Competition for 5g chips: Chinese manufacturers rise market expects entry-level 5g chips

category:Finance
 Competition for 5g chips: Chinese manufacturers rise market expects entry-level 5g chips


In the 5g competition, the competition among chip manufacturers is more fierce than ever. In January this year, Qualcomm snapdragon 765 chip price cut, announced 5g chip price war in advance. In this round of competition, reducing power consumption has become one of the focuses, and process optimization (CPU manufacturing process) is considered as the main way.

A 5g chip released by violet light in February this year. Photo source: provided by Ziguang zhanrui

Domestic 5g chip manufacturers are emerging

As Intel has been unable to find a clear profit path, it announced to withdraw from 5g mobile baseband chip business. Currently, there are only five 5g chip manufacturers in the world.

The characteristics of these five manufacturers are obvious. Huaweis chips are produced and sold by itself, and Samsungs action in seizing the core of other brand models is not outstanding; Qualcomm is a strong competitor, which has occupied most of the Android terminals before, but MediaTek is also making efforts frequently recently; Ziguang zhanrui is mainly facing the domestic market.

The top five competition started in 2018. Huawei, MediaTek and Samsung all showed the first 5g baseband chip in this year. In 2019, the competition became more and more intense. In the beginning of 2019, the company released two 5g products, namely 5g communication technology platform Makalu and the first 5g baseband chip Ivy 510; in Qualcomms aspect, in the beginning of 2019, it also released the upgraded version x55 of 5g baseband chip X50, and two 5g chips were released at the end of December; Huawei, just ahead of Qualcomm x55, released 5g baseband chip Baron 5000 in mid September For the first time, Huawei has also installed 5g chips in the new series.

China is considered to be the largest market for 5g chips, which is also a great opportunity for domestic chip manufacturers to emerge.

In February this year, it was revealed at the online press conference that Hisense 5g mobile phone F50 will be equipped with Ziguang zhanruis Huben t7510 processor, which has been officially released.

Qualcomm 5g chip displayed at 2019 China Unicom Global Partner Conference. Photo source: by Liu Chunshan

Market expectation entry-level 5g chip

2020 is the first year of 5g scale business. According to the monitoring data of Chinas mobile phone sales provided by cinnoresearch, affected by the epidemic in the first quarter of 2020, the overall sales volume of smart phones dropped by 48% on a month on month basis, almost cutting back, but the sales volume of 5g smart phones increased by 1% on a month on month basis. In April, the sales volume of 5g smart phones increased by 120% on a month on month basis.

However, the price of 5g mobile phones released on the market is generally high, which is related to the high chip price.

The chips are very expensive. The nodes of the first EUV (ultra violet lithography) mass production at 7Nm are super crowded. Everyone is scrambling. In February, Chu Qing, CEO of Ziguang exhibition, told the media, including the daily economic news.

However, at present, the price war among chip manufacturers has started in advance.

In January this year, Qualcomm snapdragon 765 chip price cut, as the mainstream chip supplier of Android, which will undoubtedly put pressure on other manufacturers - such as MediaTek.

According to the analysis of Tianfeng international in January this year, the 5g chip price war started 3-6 months earlier than the market expectation, and Qualcomm will continue its price reduction strategy, offset the impact of price decline with volume and maintain overall profits. The price pressure faced by MediaTek will continue to rise, and the gross profit margin of 5g chip may be lower than 30% - 35%.

From the market point of view, consumers are still highly sensitive to the price. The voice of 5g thousand yuan machine is strong. The industry looks forward to the entry-level 5g chip, but at present, there is still a distance.

The vast majority of consumers will not be willing to pay a lot more because of 5g, which means that we, from mobile phone manufacturers to all aspects, have to bear the relevant pressure. Said Zhou Chen.

At the 2019 China Unicom Global Partner Conference, the chips of Ziguang zhanrui, MediaTek and Qualcomm (from left to right) were displayed.

Photo source: by Liu Chunshan

Process competition to reduce power consumption

The power consumption of 5g chip has become one of the key problems that hinder the large-scale market of 5g mobile phones. Reducing power consumption is one of the main development directions of 5g chip, which is usually optimized by improving semiconductor process. Cinnor research told the daily economic news.

In February this year, Ziguang zhanrui released a new generation of 5gsoc chip Huben t7520, which adopts the 6nm EUV process. Compared with the 7Nm process, the transistor density is increased by 18%, and the power consumption is reduced by 8%. Compared with the previous generation product Huben t7510, the overall power consumption in 5g data scenario is reduced by 35%, and the power consumption in standby scenario is reduced by 15%.

Qilin 1020 and Qualcomm snapdragon 875 adopt a 5nm process. Although MediaTek Tianji 1000 + adopts a 7Nm process, it is advertised that the average power consumption is 48% lower than that of its peers after using the self-developed 5gultrasave power saving technology. In addition, Apples mobile phone has not yet launched 5g version, but the industry speculates that Apple will use 5nm process chip.

Now the process has become one nanometre and one nanometre to remove the matting, which is not a real physical one, but a superposition of corresponding characteristics. In February this year, Zhou Chen told the media, including the daily economic news, that the essential difference between 7Nm and 6nm is the EUV lithography process. Chuqing said that the cost of chips over 7Nm has skyrocketed, which has formed a process wall. The world in the wall pursues to launch the most advanced, best performance and lowest power consumption products in the world. These products must be massive. If there is no massive, they will not bear the one-time cost. Choosing process nodes is almost a gamble for chip manufacturers. For example, violet zhanrui selects the node in the first process wall at 6nm. In violet zhanruis view, 6nm is more stable and mature than 7Nm. Its a big gamble on a node. IP storage should be almost one year ahead of schedule. Otherwise, its uncertain. Its not only the economic cost, but also the time cost. Chu Qing said. Source: Daily Economic News Author: Li shaoting editor in charge: Wang Xiaowu Gu NF

Now the process has become one nanometre and one nanometre to remove the matting, which is not a real physical one, but a superposition of corresponding characteristics. In February this year, Zhou Chen told the media, including the daily economic news, that the essential difference between 7Nm and 6nm is the EUV lithography process.

Chuqing said that the cost of chips over 7Nm has skyrocketed, which has formed a process wall. The world in the wall pursues to launch the most advanced, best performance and lowest power consumption products in the world. These products must be massive. If there is no massive, they will not bear the one-time cost.

Choosing process nodes is almost a gamble for chip manufacturers. For example, violet zhanrui selects the node in the first process wall at 6nm. In violet zhanruis view, 6nm is more stable and mature than 7Nm. Its a big gamble on a node. IP storage should be almost one year ahead of schedule. Otherwise, its uncertain. Its not only the economic cost, but also the time cost. Chu Qing said.