Apple's entry into AI reportedly led to Qualcomm and MediaTek stockpiling chips
Apple's entry into the AI space is said to have sparked a frenzy among Android phone brands and chip companies to stockpile chips.
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Apple's confidence with its AI technologies reportedly sparked a frenzy among Android makers to focus more on AI flagship phones. This in turn led to Qualcomm and MediaTek stockpiling chips in anticipation of the huge demand.
Apple joining the generative AI narrative has caused a frenzy among Android phone makers and chip companies.
DigiTimes claims that the showcase of Apple Intelligence at WWDC has caused some Android phone makers to re-evaluate their plans and progress, with some shocked at how far behind they are against Apple.
As Android phone makers make the development of innovative AI features and AI flagship phones their priorities, chip makers such as Qualcomm and MediaTek are anticipating a spike in demand for their chips and have started stockpiling them.
Specifically, the two chip makers expect brands to go all in on new 3nm chips. These chips will offer better performance and lower power draw, a crucial combination for supporting AI features.
Stockpiling chips is not new in this industry. Back in 2020, Huawei stockpiled telecom chips for its base stations ahead of the then-Trump administration's trade restrictions on the company.
Furthermore, chip companies will want to avoid a repeat of the global chip shortage that happened during the Covid-19 pandemic, which affected a wide range of products including cars, networking devices, gaming consoles, and more.
Source: DigiTimes
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