Look what we have here. A new report mentions that MediaTek is going to enter Samsung’s supply chain and provide the Korean giant with chips for their products. According to Commercial Times, MediaTek is expected to supply Samsung with its quad and 8-core processors in the second half of 2014.
Digitimes report,
MediaTek is expected to enter the supply chain of Samsung Electronics with its quad- and 8-core mobile processors in the second half of 2014, the Chinese-language Commercial Times cited CLSA Asia-Pacific Markets as saying in an October 2 report.
MediaTek’s Growing Influence in the Mobile Market
MediaTek is fairly popular in China and is used by many Chinese OEMs in their Android handsets, including the popular Xiaomi, which is also known as the Apple of China. Many small handset manufacturers are also opting for MediaTek chipsets as they are cheaper than the likes of Qualcomm. MediaTek’s processors are known for their cost-effectiveness and decent performance, making them a preferred choice for budget and mid-range smartphones.
The company’s strategy of providing affordable yet powerful chipsets has allowed it to capture a significant market share in emerging markets. For instance, in India, many smartphone brands like Micromax and Lava have adopted MediaTek processors to keep their device costs low while still offering competitive performance. This approach has helped MediaTek to become a formidable player in the global semiconductor industry.
Samsung’s Strategy with MediaTek Processors
It seems Samsung is planning to use MediaTek processors in its mid-range smartphones while the high-end handsets will still be powered by the Exynos 5 Octa chipsets or those made by the folks at Qualcomm. This strategic move allows Samsung to diversify its supply chain and reduce dependency on a single chipset provider. By incorporating MediaTek processors, Samsung can potentially lower production costs for its mid-range devices, making them more competitive in price-sensitive markets.
For example, Samsung’s Galaxy A and Galaxy M series could benefit from MediaTek’s cost-effective solutions. These series are targeted at consumers who seek a balance between performance and affordability. By integrating MediaTek’s quad and 8-core processors, Samsung can offer enhanced performance in these segments without significantly increasing the retail price.
Moreover, this partnership could also lead to innovations in Samsung’s product lineup. MediaTek’s expertise in AI and connectivity solutions could complement Samsung’s hardware capabilities, resulting in feature-rich smartphones that cater to a broader audience. For instance, MediaTek’s advancements in 5G technology could help Samsung accelerate the rollout of 5G-enabled mid-range smartphones, making next-gen connectivity more accessible to the masses.
In addition to smartphones, MediaTek’s processors could also find their way into other Samsung products such as tablets and smart home devices. This would further strengthen the collaboration between the two companies and open up new avenues for technological advancements.
Source: Digitimes
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