The relations between Xiaomi and MediaTek have grown over the years. In recent times, the Chinese tech giant has sourced more and more chips from MediaTek and, now, a new report suggests that both firms will collaborate to develop a new custom made smartphone chip for future smartphones….Unfortunately, this is still an unconfirmed report so take it with a pinch of salt.
(Gizmochina, June 30)
(Gizmochina, June 30)
- If true, this would obviously be about margins and being competitive in the sub-$300 segment – which Chinese vendors dominate. Two-thirds of Xiaomi’s smartphone unit sales in May came from the $100-$299 segment.
- The trend to proprietary chips has also been in line with increased focus on the mid-range from key vendors – Samsung is the best example and we’re seeing the A51 shine right now.
- In Xiaomi’s case, going proprietary could allow it to provide more value, helping to maintain its growth trajectory in an increasingly crowded segment.
- Many OEMs would like to go this route, but development challenges can be prohibitive. What we may see are more partnerships for custom chips moving forward.