MediaTek Inc., the largest system-on-chip manufacturer in Taiwan, reported that its consolidated revenue in January declined to the lowest in 11 months. Shrinking market and the strong dollar is predicted to drive the quarter revenue to be lower than last year’s result in the same period.
The company reported on Wednesday, Feb. 8 that its January revenue reached the lowest point in 11 months. The monthly revenue in January 2017 decline by 14.1 percent to $588.3 million, according to DigiTimes.
During the January’s shareholders meeting, Vice Chairman Hsieh Ching-jiang said the company has predicted the declining revenue by 14 to 12 percent in the first quarter of 2017. Hsieh indicated the customers demand for electronic gadgets in the first quarter of 2017 will weaken. He also expected the company’s global growth in 2017 will grow by only 4 to 6 percent with 1.7 billion units of its product shipment for smartphone and tablet system-on-chip (SoC).
The shrinking market in the SoC has been the major factor of MediaTek’s declining revenue. Many smartphone makers have decided to built their own chip, instead of using the product from semiconductor producers such as MediaTek and Qualcomm.
Samsung and Huawei has produced their own SoC for their own product. Xiaomi, one of the world’s biggest smartphone manufacturer will follow suit, Wall Street Journal reported. Xiaomi which has become the globally recognized brand, is under fierce competition from Oppo and Huawei in the domestic market.
In order to streamline its process, Xiaomi develop its own processor to allow its device to run smoothly with good integration between hardware and software. Xiaomi’s new chip will be named Pinecone. The new Xiaomi’s chip will be the new player in the SoC after Qualcomm Snapdragon, Samsung Exynos, MediaTek Helio and Huawei Kirin.
Watch the showdown of the SoC between the Snapdragon 810, Exynos 7420, Helio X10 and Kirin 935 from Android Authority below: