MediaTek’s “3A Strategy” at the Taiwan 5G Commercialization Summit
As 5G approaches commercialization, analysts report consumers voicing concerns about the availability of 5G mobile terminals, feature prices, and what it really means for the user experience. To meet these concerns head-on, recently at the Taiwan 5G Commercialization Summit, MediaTek’s Chairman, Ming-Kai Tsai, stated that MediaTek is pursuing a new “3A strategy” of “Accessible, Affordable, and Available” for 5G customers.
MediaTek’s 5G Efforts – Where Supply Meets Demand
Market research predicts that China’s 5G market will reach RMB 3.3 trillion ($493Bn) by 2025, and the 5G smartphone market is expected to scale to 110 million units annually, worldwide, as soon as 2021. Currently, the market is looking at RMB 100 billion ($15Bn) based on the median price of RMB 2,000 ($300) for smart phones in the China domestic market. MediaTek has launched its first generation 5G baseband chipset – the Helio M70 – for commercial 5G terminals with support for 5G NR (sub 6GHz bands), dual-mode NSA and SA modes, and multimode support that spans 2G-to-5G. At MWC 2019, the Helio M70 demo showcased 5G data speeds at 4.2Gbps– the industry’s fastest sub-6GHz live 5G modem demonstration to date. MediaTek is prepared for 5G products supporting the M70 and future generations in reflection of commercial market availability.
5G to Drive Growth in Emerging Markets for MediaTek
Although the official launch of 5G is this year, analysts predict that 5G won’t truly breakout until during 2020. “5G” will be characterized by more than just high speed connections, it will transition simple consumption devices to expand applications across a wide remit of smart home, richer internet of things (AIoT), automotive electronics, new low-latency applications and the even broader Internet-of-Everything (IoE).
In fact, there are only a handful of chip manufacturers, such as MediaTek, with the breadth of technology portfolio and market penetration to achieve success across these segments. MediaTek’s latest financial report shows its mobile phones, smart home, Internet-of-Things and ASIC business units are major pillars, and with 5G, MediaTek will adopt a dual-approach to use its extensive connectivity technologies throughout smartphone, home and IoT products.
It is worth mentioning that – across 5G’s wide remit of target markets – the commercial and enterprise market is expected to advance faster than the consumer market. MediaTek has a portfolio of mature IP patents, product design, and network connectivity, coupled with mature solutions in ASIC (game console, data center); considering the total scope of potential 5G applications it is expecting to drive more growth through its commercial and enterprise strongholds.
Innovation in R&D Starts from the Top – MediaTek Going All In
Deep integration in ICs is the backbone of 5G and AI technologies. It is not easy to realize comprehensive features, performance and power efficiency in compute, communication, multimedia, and AI, plus global 5G connectivity all in a single SoC. Supported by its extensive R&D efforts, MediaTek is also working upstream in deep collaborations through the industry to achieve this across many product verticals.
The recent 3GPP meeting in Taiwan discussing 5G was spearheaded by MediaTek, with Vice Chairman, Ching-Jiang Hsieh, stating that the meeting is also an affirmation of its technical capabilities and wide-market significance. MediaTek has submitted four times the number of 5G proposals to 3GPP over 4G, wherein 43% of which has been adopted into the Rel-15 standard, ranking the company in the top-three globally. MediaTek has also filed for numerous core 5G patents to highlight its active participation and technical capability in the standardization of 5G over the previous generation.
Innovation clearly drives competition in the communications market. Although there are already 3 billion internet users, 5 billion more are still without or have limited access to the Internet; its these broad ranging, up-and-coming markets that MediaTek is watching very closely. It aims to not only provide the communication infrastructure for even more consumers but the company is also pushing to promote the spread of new technologies – exactly in line with its 3A strategy proposed by the Chairman.