Supply chain
Highlights of the day: Affordable 5G smartphones
DIGITIMES staff

Device pricing is expected to be a major factor determining the pace of growth in China's 5G smartphone market next year, and Chinese vendors are keen to make sure that their phones are affordable. Naturally they are demanding their componets suppliers lower their quotes. And application processor vendors are also gearing up for the 5G smatphone market. MediaTek, which expects explosive growth in the 5G smartphone shipments globally in 2020, is set to roll out more 5G SoCs next year. Meanwhile, Taiwan's IT supply chain is seeing more server clients come knocking on their door. Dell reportedly is set to purchase more from Taiwanese server components suppliers to avoid the US tariffs on Chinese products.

Quotes for 5G smartphone components face downward pressure: Handset component suppliers, particularly those for camera modules, displays and acoustic devices, are facing increasing pressure from China's handset vendors to lower their quotes for components for 5G-enabled phones as Chinese vendors are aiming at reducing 5G phone prices significantly in 2020, according to sources from Taiwan's handset supply chain.

MediaTek to roll out 2 SoC chips for sub-6GHz in 1H20: MediaTek is scheduled to roll out the company's first 5G SoC for sub-6GHz networks in early 2020, with plans to launch its second 5G mobile chip that will also support sub-6GHz in the first half of next year, according to industry sources.

Dell reportedly to increase server purchases from Taiwan: Dell reportedly plans to increase its server purchases from Taiwan, and has also scaled up its workforce locally, according to industry sources.

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