MediaTek plans to increase 3G, 4G chip prices

MediaTek is considering raising the prices of its 3G and 4G mobile chips in an effort to mitigate the impact of lower-than-expected 5G chip sales on its performance this year, according to industry sources.

MediaTek's 20% year-on-year revenue growth target for 2022 may not be achieved due to a drop in orders from its Android smartphone customers, sources said.

It was previously reported that Xiaomi, OPPO, vivo and other leading smartphone makers in mainland China have told suppliers that orders in the next few quarters will be reduced by about 20% compared to previous plans.

Xiaomi has told suppliers that it will lower its full-year forecast to around 160 million to 180 million units from its previous target of 200 million units, according to people familiar with the matter. Vivo and OPPO also cut orders by about 20% in the second and third quarters in an attempt to digest the excess inventory currently flooding retail channels.