MediaTek, once a leader in high-end mobile phone chips, has seen its dominance in the premium segment wane. With the growing competition and the saturation of the low-end chip market, the company is now shifting its focus to the Internet of Things (IoT) sector. As IoT gains momentum, MediaTek has expanded its product lines to capture a larger share of this emerging market.
After transitioning from traditional mobile and internet technologies, IoT has become the next big battleground for tech companies. MediaTek is no exception, actively exploring opportunities in this space. According to Yu Renjie, Deputy General Manager and Head of the Family Entertainment Business Group at MediaTek, “With the advancement of AI technology, smart speakers have taken off. We don’t know what new products will emerge in the IoT era, so we need to build a complete product line to seize every opportunity.â€
At the 2017 China Mobile Partner Conference, MediaTek introduced its first dual-mode IoT SoC, the MT2621, which supports NB-IoT R14 specifications. It was set to be available in Q1 2018. The chip supports both NB-IoT and GSM/GPRS networks, offering low cost and power efficiency. It is ideal for wearables, security devices, smart meters, and industrial applications.
While MediaTek’s high-end mobile chip business faced challenges, the IoT chip market has become a new growth area. However, industry experts note that IoT requires a comprehensive ecosystem. Compared to companies like Huawei, MediaTek may excel in individual chip design but lacks a strong ecosystem presence.
Currently, MediaTek focuses on consumer-oriented IoT applications such as wearables, shared bikes, home gateways, and GPS tracking. In 2015, it launched the MT2503, which dominated the shared bike market. The company is also expanding into automotive and industrial sectors.
According to Traveler Jie, MediaTek has two major business groups: one focused on wireless products (mainly phones), and another on family entertainment, which includes IoT. This group accounts for 25% of MediaTek’s revenue. In 2016, IoT-related services, including smart speakers and Wi-Fi, contributed to a 20% year-on-year growth.
MediaTek currently holds over 70% of the smart speaker market. It supports voice platforms such as Alibaba’s Tmall Genie and Baidu’s DuerOS domestically, and Amazon and Google Assistant internationally. Analysts predict a tenfold increase in smart speaker shipments in 2017.
Driven by smart homes, smart cities, and connected hardware, the IoT market is booming. Gartner predicts 26 billion connected devices by 2020, with the IoT market reaching $1.9 trillion. By 2022, the IoT chip market could exceed $10 billion. Currently, foreign companies like ARM, Qualcomm, and Intel dominate, while domestic players include Haisi, Spreadtrum, and MediaTek.
NB-IoT is gaining traction as a key IoT technology. Designed for low-power wide-area networks, it enables massive device connections, improved coverage, and reduced power consumption. China Mobile recently announced plans to expand NB-IoT coverage to 346 cities by 2017, with nationwide coverage by 2020.
In June, MediaTek launched the NB-IoT SoC MT2625. The MT2621, released in November 2017, adds a 2G module for dual standby, serving as a transitional solution before full NB-IoT coverage. While many companies are investing in NB-IoT, the ecosystem is still developing, and it may take years to mature.
Yu Renjie believes that smart speakers will evolve into new human-machine interfaces. For example, integrating them into cars or making them the hub of smart homes can accelerate the adoption of IoT. MediaTek continues to invest in this space, aiming to lead in the NB-IoT market through advanced chips.
Despite its efforts, MediaTek’s ecosystem strategy remains weaker compared to competitors like Huawei. While it excels in chip design and cost efficiency, it lacks the extensive partnerships and integrated ecosystems that Huawei has built. Experts suggest that collaboration with terminal manufacturers and application developers is crucial for MediaTek's success in IoT.
As the IoT landscape evolves, MediaTek must continue to innovate and strengthen its alliances to remain competitive in this fast-growing market.
Lithium Battery Cr2,Film Camera Battery,Industrial 3V Lithium Batteries,Instrument Primary Lithium Battery
Jiangmen Hongli Energy Co.ltd , https://www.honglienergy.com