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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
In 2007, Apple launched its first smartphone which was a revolution in the mobile phone industry. After that all other manufacturers took to the production of smartphones.
The core processing elements of smartphones are chipsets. They help perform all functions in the smartphones from handling the phone operating system, making phone calls, processing mobile applications, connecting the phone to the Bluetooth and the Wi-Fi, to store data and manage power.It is possible for the smartphone original equipment manufacturers to produce configurations of chipsets and add extra features to the chipsets as well.
Chipsets made of silicon are also known as application processors and system -on-chip ( SoCs). They play a major role in distinguishing various smartphones and determining how powerful and capable a phone is. With the rise in adoption of smartphones, naturally chipsets demand has also increased in the past few years. However, during the second quarter of 2020, like all other economic activities being affected, the global smartphone chipset marketâs revenues also declined. Nonetheless, it is expected that this industry will recover by 2022 and a rise in demand was seen in Q3 of 2020.
The main users for whom SoCs play an important role are mobile gamers and as the mobile gaming industry boomed during the last 2 years, a powerful SoC became a determinant while choosing mobile phones.
For the low budget phones, the most popular chipsets in 2020 were as follows :
For the mid range phones, the names of the popular chipsets are as follows:
For the High end range, the popular available options are :
The market can be divided into North America, Europe, South America, Asia Pacific and Middle East and Africa. North America is the most dominant region due to their faster adoption of advanced technology.
Higher production of smartphones, growing population and rise in per capita disposable income were some factors contributing towards the growth of the market in the Asia Pacific region. It is still expected that this region will record the highest CAGR. For the Middle East and Africa region it is forecasted that the level of growth will be moderate.
Other important specifications:Currently, the octa core processors are the most prevalent in the market. The processing speed determines the number of commands the processor can execute in one second. The higher the processing speed, the price range would be higher.
| SI No | Timeline | Company | Developments |
| 1 | September 2021 | Geely | Geely, the Chinese automotive company that owns brands such as Lotus, Volvo, and Polestar, is now about to join the mobile phone market |
| 2 | August 2021 | Samsung | Samsung Group is expected to increase its chip plant investment in the face of worldwide shortages and mergers and acquisitions (M&A) following the release of its CEO. |
| 4 | July 2021 | Media Tek | MediaTekâs share in the smartphone chipset market â as of Q3 2021 â stands at 40%, showing an increase of seven percentage points compared to the same period in 2020. |
| Sl.no | Timeline | Developments |
| 1 | Q4-2021 | Samsung to maximize its Exynos processors shipments in the upcoming year, to reduce dependency on third party chip suppliers and also to deal with global chip shortage. Samsung also plans to set up a new plant in Texas, US for chip manufacturing with a budget of $17 billion. |
| 2 | Q4-2021 | MediaTek unveiled its new Dimensity 9000L series processor by TSMCâs 4nm N4 technology, 5G connectivity also increased performance in single core and multi core thread. |
| 3 | Q3-2021 | Apple launched its most powerful A15 Bionic chip with improved performance and battery life, and chips are powered in its new iPhone 13 series phones and iPad Mini devices. |
| 4 | Q4-2021 | Oppo revealed that it will develop its own custom smartphone chipset by partnering with TSMC for its flagship smartphones. |
| 5 | Q3-2021 | The Indian government announced to offer incentives of $1 billion for semiconductor companies that set up manufacturing units in the country. |
| 6 | Q4-2021 | TSMC to set up a new manufacturing plant with an investment of $9 billion. |
| SI.no | Timeline | Company | Developments |
| 1 | Q3-2021 | Google designed its new smartphone chipset called Tensor to compete with other chipsets in the market. Googleâs new Pixel 6 series phones are powered by Tensor chipsets. Q3 | |
| 2 | Q4-2021 | Nothing | Nothing is partnered with Qualcomm to use Snapdragon processors in its upcoming first generation 5G smartphones. |
| 3 | Q4-2021 | UniSoc | Chinese semiconductor company UniSoc produces its Tanggula series chipsets for 5G technology to compete in the market |
| 4 | Q2-2021 | Huawei | Huawei to launch its HiSilicon processor Kirin 9000L series Soc chips which are likely to be available in its P50 smartphones. |
| 5 | Q2-2021 | Qualcomm | Qualcomm launched its sixth generation AI engine Snapdragon 888 plus 5G processor for upcoming flagship smartphones. |
| 6 | Q4-2021 | Samsung | Samsung is working on budget phone processors with a new chipset called Exynos 1280. |
A contract between Apple and Intel states that Apple will buy the majority of Intel's smartphone modem business. Along with intellectual property, machinery, and leases, about a calculated number of Intel employees will join Apple. The $1 billion transaction is anticipated to close after receiving regulatory clearances and satisfying other usual requirements, which may include work council and other pertinent consultations in some jurisdictions.
Apple will have more than 17,000 wireless technology patents, spanning from protocols for cellular standards to modem architecture and modem operation, if the purchased patents for present and future wireless technologies are combined with Apple's current portfolio. Intel will continue to be able to create modems for devices other than smartphones, such as computers, internet-of-things gadgets, and self-driving cars. With computing and communications technology serving as the cornerstone of global advancements, Intel, a leader in the semiconductor industry, is defining the data-centric future.
By securing, supplying power to, and connecting billions of devices as well as the infrastructure of the smart, connected world, from the cloud to the network to the edge and everything in between, the company's engineering expertise is assisting in addressing some of the greatest challenges facing the world.
| SI No | Timeline | Company | Developments |
| 1 | January 2021 | Qualcomm | Qualcomm, today, announced the acquisition of a chip startup called NUVIA. The top smartphone chipmaker in the world will be paying $1.4 billion for NUVIA. |
| 2 | November 2020 | Media Tek | MediaTek, a Taiwanese fabless semiconductor manufacturer, has purchased Intel Enpirion power management chip product line-related assets for $85 million through its subsidiary Richtek. |
| 4 | May 2021 | Nvidia | Nvidiaâs plans to acquire UK-based chip designer Arm in a deal worth US$40 billion |
| SI.no | Timeline | Company | Developments |
| 1 | Q4-2021 | Samsung | Samsungâs new Exynos processor model E2200 chips are used in its next Galaxy S22 smartphones but only available for Europe and Russia regions. |
| 2 | Q4-2021 | Qualcomm | Qualcomm $9.3 billion revenue in Q4 earnings with a rise in 43% year over year. |
| 3 | Q4-2021 | TSMC | TSMC made $1.42 billion revenue in Q3, which is reported to be the record high revenue. |
| 4 | Q4-2021 | Mediatek | Mediatek to increase price of smartphone chipsets by 15% due to increase in demand. |
Smartphone market can be divided into two categories - Android devices and iOS devices. While Apple is the sole producer for iOS devices providing The chipset market consists of a few players namely :
Their high level of performance in the mid range price phone segment and them capitalising on the opportunity in the United States Market after the brand Huewei had been banned also helped them achieve this position. Mediatek chipsets are commonly found in Xiaomi smartphones which has become a popular brand among users for budget phones. Mediatek also helped in making the cheapest 5G smartphone as well as launched a gaming based series keeping in mind the consumerâs interest which has been advantageous for them.
There is intense competition between Mediatek and Qualcomm in the middle range smartphones segment.
Innovation is the key for competitors in this industry. While the competition is intense in the market, there is also a certain degree of cooperation among the players. However there are barriers to entry in the market such as high cost of research and development for keeping the pace of innovation with the advancement of technology on which the big players such as MediaTek and Qualcomm have made high investments in the last decade.
The main focus of the chipset manufacturers is to help in making 5G capable technology easily available to a larger population at an affordable price. Once 5G technology has become accessible, people will start using it for various purposes such as cloud gaming etc. for which better range products for higher use will be demanded by users and hence chipset demands will remain stable. Higher locked GPUs and powerful processors will be needed for the use cases.
The smartphone chipset industry is also focusing on very relevant concepts like Artificial Intelligence and Machine Learning as their applications are now seen in every sector. Features such as face identification and augmented reality are a byproduct of introduction of AI chipsets in smartphones.
Gaming and photography are two other focus areas for the smartphone chipset players and Qualcomm has launched better versions of chipsets to improve the gaming experience. Graphics performance in the existing chipsets have potential for improvement which is expected to be seen in the coming years. Apart from these factors, power efficiency and a system to control battery consumption is necessary. Overall, though there has been very less annual improvement in the performance of SoCs in the last 3 years, the next 5 years provide a great scope for making more efficient and powerful mobile processors.
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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