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Next-Gen 5G & WiFi 6 Processor Demand Boom

Supplier sources claim shipments of 5G and WiFi 6 chips are still booming into Q4, with demand tipped to further grow alongside a drop in component prices.

According to Taiwanese trade publication, DigiTimes, suppliers are continuing to see strong order pull-ins for chips supporting the production of WiFi 6 network devices and 5G phones in Q4Y20.

Suppliers expect shipments of parts to facilitate fast charging, plus ambient lighting sensors for next generation smart home devices to be particularly strong in Q4, following releases from the likes of Samsung and Apple.

DigiTimes supplier sources forecast shipments of next-generation WiFi chips to register at least 20% on-year growth in Q4, with momentum tipped to continue into 2021.

The news comes as brand vendors for smartphones and networking gear reportedly cut the prices of end-market devices, which suppliers claim has further triggered replacement demand.

Companies such as MediaTek, FocalTech Systems and Realtek Semiconductor are tipped to benefit from market trends, with sales expected to further improve in Q4.

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