There is a lack of sustainable global chip, but you might not think it is the case after hearing the latest counterpoint research market analysis report. At least as far as it concerns smartphones, application processors (AP) and system-on-chip systems (SOC) apparently still increasing, even though there are economic opportunities. It might be more interesting is the revelation that, for a quarter again, MediaTek has succeeded in seizing the top position of Qualcomm, even though the lead will soon be narrow or even disappeared in the coming months.

According to research companies, the AP / SOC market grew by 31% in the second quarter of 2021 compared to the same period last year. Given the sustainable constraints on inventory and logistics, it is a considerable increase. Then again, in a hurry to buy a smartphone since last year and a heavy boost towards 5G conspiraced to produce more sales of smart phones than before.

MediaTek is the biggest quarterly winner of the last quarter, with a market share of 43% up from 26% in the second quarter of 2020. The growth is associated with its focus to flood the mobile market with a mid-low 5G chip and continued and aggressive pushes in the existing 4G LTE market.

Although Qualcomm market share fell slightly from 28% to 24% the last quarter, Qualcomm actually maintained the advantage in the 5G segment, almost doubled its share from 29% to 55%. It was mostly driven by strong demand for the iPhone with a 5G Qualcomm modem inside and a new batch of upscale smartphones. Unfortunately, it was significantly exposed to the problem and limiting the supply in the first half of 2021.

Comparative research, however, predicts that Qualcomm can immediately narrow the gap with MediaTek in the coming quarter. Qualcomm is reported to have ensured extra capacity in TSMC for the rest of the year, but the price increase recently announced can also affect Qualcomm’s inventory and prices.