MediaTek's automotive chips are mass-produced and shipped

Markets such as autonomous driving and electric vehicles continued to lead the substantial growth of the automotive electronics market, and MediaTek’s layout in the automotive market finally came out.

The legal person pointed out that MediaTek’s automotive 5G data chips have successfully entered the supply chain of European and Asian car brands, and will gradually mass-produce and ship from the second half of this year. It is expected that the momentum of shipments will be more significant next year.

Although the current proportion of revenue is quite limited, it shows that MediaTek products have successfully opened up the market in the supply chain of pre-installed automotive components, and it is expected to enter the autonomous driving market in the future, and gradually expand its performance momentum.

The legal person pointed out that MediaTek is currently taking the lead in integrating vehicle product lines such as the Internet of Vehicles and vehicle communication and entertainment systems with 5G data chips, and will begin mass production and shipments in the second half of the year.

MediaTek has been working on the automotive product line for at least five years and has obtained orders from at least one automaker in Asia and Europe, serving as a beachhead for MediaTek to enter the automotive market. Supply chain expectations, MediaTek has begun to cooperate with more global first-tier car manufacturers and auto parts manufacturers, neither the automotive industry nor MediaTek will allow Qualcomm to monopolize the field of automotive chips.

MediaTek revealed in the middle of this year that 5G chips have successfully entered the automotive supply chain, and they have been integrated into the car networking chip mode and shipped, mainly in the Sub-6 frequency band. Subsequent shipments are expected to be in the 5G product line in the millimeter wave (mmWave) frequency band , and in addition to 5G chips, 4G chips will also target the mainstream automotive market, and the follow-up shipment momentum is expected to gradually grow.

The legal person pointed out that MediaTek's automotive product line and special application chips (ASIC) currently account for less than 5% of the total revenue. After the automotive products begin to be shipped in large quantities, there is a chance to grow by a single-digit percentage, although the proportion of revenue. It is still not significant, but if it is expected to enter the car factory with self-driving technology in the future, then the revenue will have the opportunity to increase rapidly.

MediaTek's recent share price performance was affected by the impact of the broader market and the recent sluggish consumer demand. On the 24th, the share price fell by 1.86% to NT$580, which fell below the recent low and has fallen back to the rank of September 2020. The three major legal persons sold a total of more than 593 copies, oversold for four consecutive trading days.

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