mobile phone shipments continue to increase, MediaTek 4G chips will increase by 5-10%

According to Taiwan Economic Daily, Morgan Stanley investigated that although the epidemic in emerging markets is heating up, the demand for 4G chips is still strong. MediaTek 4G chips are expected to further increase by 5-10%. Gross profit margin continued to rise in the fourth quarter. In addition, Tianji 700 is about to ask for the market and New Glory may be included in the list of US entities, which is more conducive to the market share of MediaTek's long-term chips in the mainland.

Morgan Stanley said the rising outbreak in emerging markets has investors worried about falling demand for mobile phones, but watching market data and supply chain news,4G demand is still strong, and with the wafer foundry price rising again, MediaTek 4G single chip is expected to increase by 5-10%. At present, 4G single chip contributes the proportion of MediaTek's revenue.26%, it will support MediaTek's gross margin to continue to improve in the fourth quarter after strengthening in the peak season of the third quarter.

local statistics in China,Handset shipments in July increased by 10% compared with June, with an annual increase of 30%, the growth rate in the first seven months reached17%, Morgan Stanley's previous forecast data rebounded soon when local demand weakened, and the trend developed as expected. The brokerage estimates that China's mobile phone shipments will grow this year.7%, optimistic about the forecast smooth compliance, the biggest motivation is the low-cost version of 5G mobile phone frequency push, attract consumers to pay.

Morgan Stanley said that MediaTek is rushing to attack the mainland market and will soon launch a $30 Tianji 700 chip. The response from the mobile phone brand factory is expected to be good.

, from the perspective of market competition, Morgan Stanley said that after Xinrong Yaoli got rid of Huawei's color, 5G high-end chips were all supplied by Qualcomm. Although Xinrong did not specify whether it would continue to reduce the cooperation between US enterprises, it is expected to adopt Lianfa's Tianji 2000 in the future with China Semiconductor actively improving its self-control rate.

more importantly, the White House has also paid more attention to the new glory, and more and more voices are calling for inclusion in the entity list. Morgan Stanley believes that this will once again drive OPPO, VIVO and Xiaomi to expand their orders to MediaTek, so as to carve up the share of the new glory and make the operation of MediaTek more profitable. The few risks to be paid attention to are that the risk of customer concentration in MediaTek may increase.

Morgan Stanley emphasized that MediaTek chips are highly competitive and have not yet reached the peak of 5G development, and operating performance is still promising. Recently, MediaTek's share price has fallen continuously and has reached an attractive price. High growth is expected to drive MediaTek to take the lead when the market improves.