According to the latest report, the supply chain revealed that MediaTek has once again raised its full-year revenue outlook due to factors such as the acceleration of 5G and WiFi 6 penetration. Recently, home offices, studies, etc. have boosted the demand for the WiFi market, and the strong consumption of chips has also greatly increased the demand for related chips under MediaTek.
Regarding the price increase of Netcom chips, the supply chain analysis said that the main problem is that the capacity of the mature process is insufficient, which causes the supply of WiFi chips to be far behind the market demand.
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From Broadcom’s point of view, the current delivery period is more than 52 weeks, and the price has been increased by more than 20% for this reason. Coupled with the frequent increase in foundry prices, MediaTek has increased the quotation of WiFi 6 chips by approximately 20% to 30% this quarter.
In addition, the time point for the new production capacity of major foundries is generally in 2023, and it is too late to meet the trend of obvious growth in the penetration rate of WiFi 6 next year. In the shortage of materials, Broadcom will give priority to supplying Apple, making the supply of WiFi 6 chips tighter.
Moreover, the report said that the main foundries’ offer prices may rise again in the first quarter of next year. Because of rising costs, it is reported that MediaTek and Realtek will raise the price of WiFi 6 chips again in the first quarter of 2022 by about 10%, which is expected to further increase the unit price of products. In response to product price issues, MediaTek and other vendors declined to comment.
