The P40 chip will become the savior of MediaTek's mobile phone chips

　　According to the latest research report released by Taiwan legal person, the P40 chip  to be launched  by IC design giant MediaTek at the end of 2017  has a better cost structure and competitive product specifications. In addition, the competitor Qualcomm's Snapdragon 660 Lite chip has a higher cost structure and can no longer use price war to deal with MediaTek 's P40  chip. It is expected that MediaTek 's mobile phone processor gross profit margin will recover to the company's average level from the second quarter of 2018, which will become a turning point for MediaTek in 2018. Let's follow the editor of Mobile Phone Portable to learn about the relevant content.

　　According to the report, the upcoming  P40  chip will become the savior of MediaTek's mobile phone chip business and drive the recovery of the department. The reason is that the P40 chip has a better cost structure and product specifications. Because MediaTek's P40 chip uses TSMC's 12nm process, the grain is smaller and the cost is lower. This makes it difficult for Qualcomm, the main competitor, to launch a price war with its Snapdragon 660 Lite chip that responds to MediaTek's P40 chip at a higher price.

　　The report further pointed out that due to cost factors, Qualcomm had to price the Snapdragon 660 Lite chip at around $15 per chip, while MediaTek's P40 chip could grab market share at a price of $11 to $12 per chip. Therefore, with such an advantage, the shipment volume of MediaTek's Helio mobile application chips will increase from 15% in 2017 to more than 25%, which also means stable revenue growth for MediaTek in the future.

　　In addition, although Chinese brand mobile phone manufacturers still prefer Qualcomm's Snapdragon 670 chip in high-end models, it is estimated that MediaTek P40 chip will gradually enter the mid-range and above models of Chinese mobile phone brands in 2018, given its better cost structure and product specifications. This will make MediaTek's mobile phone chip gross profit margin gradually rise from the second quarter of 2018. The gross profit margin is estimated to increase from 35% in 2017 to 38%, which also implies that EPS per share will improve from NT$11.22 in 2017 to NT$19.76 in 2018. Therefore, the legal person raised MediaTek's investment rating from the current "reduce holdings" to "increase holdings", and the target price was also raised to NT$400 per share.

    The above is an introduction about the P40 chip which will become the savior of MediaTek's mobile phone chips in portable mobile phones. If you want to know more relevant information, please pay more attention to eeworld. eeworld Electronic Engineering will provide you with more complete, detailed and updated information.