5G for all: MediaTek dials in on affordable phones with budget chipsets

Fabless Taiwanese chipmaker MediaTek aims to lower the prices of 5G mobile devices powered by its chipsets to the Rs 6,000–7,000 range, making it easier for subscribers to switch to 5G.

Anku Jain, managing director of MediaTek India, says, “We already have chipsets that power phones priced at Rs 7,499, like the Poco M6 5G, one of India’s most affordable 5G phones. We understand that India is a price-sensitive market, and we are working to offer even more affordable 5G experiences. We hope to serve users in the Rs 6,000–7,000 price bracket soon.”

This move could drive wider adoption, as companies like Ericsson have said that 5G uptake in India can increase if the prices of 5G phones fall below $100. Jain adds that MediaTek already powers over four models priced below Rs 10,000.

Currently, there are 134 million 5G subscribers in India, but according to GSMA Intelligence projections, this figure is expected to rise to 641 million by 2030 — meaning half of India’s population will be on 5G. Presently, only 18 per cent of the population uses 5G phones.

Jain notes that while the overall smartphone market has been cooling, he expects the transition from 4G to 5G in India to take another three years. Over 77 per cent of the smartphones shipped in the second quarter (Q2) of calendar year (CY) 2024 in India were 5G-enabled, supported by falling average selling prices as chip companies released more budget-friendly chipsets.

He adds that MediaTek, which manufactures most of its chips through Taiwan Semiconductor Manufacturing Company, is open to sourcing from India once the ecosystem is established. Several outsourced semiconductor assembly and test facilities and a Tata Group fab plant are being set up in Dholera, Gujarat. The Tata plant, in particular, will have a production capacity of up to 50,000 wafers per month, with a total investment of around Rs 91,000 crore.

MediaTek is also accelerating its push into the automotive chipset market, where it competes closely with Qualcomm.

Jain says, “It is going to be a big market for us. We have already partnered JioThings to launch a Make in India smart digital cluster and smart module designed for the two-wheeler industry. We are also working with Ola Electric and are in talks with four-wheeler manufacturers in the country, hoping to make some announcements soon. Our focus is on key areas like the cockpit, advanced driver assistance systems, and components.”

These efforts have helped MediaTek grow its share of the Indian chipset market. In Q2 CY 2024, the company led the smartphone market with a 54 per cent share. By their estimates, they hold about 50 per cent of the Indian 5G chipset market, where their main competitor is Qualcomm.