With US-based network IC vendors putting increased focus on automotive applications, Taiwan's MediaTek and Realtek Semiconductor are both expected to grow their presence in the non-automotive high-end segment, according to industry sources.

US network chip suppliers including Broadcom, Qualcomm and Marvell continue to expand their production and shipment ratios for automotive applications, which boast substantial growth potentials, greater profitability and higher entry threshold for competitors, the sources said.

Qualcomm has recently conducted high-profile promotion of its automotive ADAS and audio/video entertainment chip platforms looking to further extend its wireless communication technology prowess to automotive products, while Broadcom and Marvell have strengthened deployments in Ethernet controller chips, Wi-Fi SoCs, Bluetooth controllers, and 5G connectivity chips for automotive applications, the sources continued.

Their shift of production focus to automotive applications has provided a good opportunity for MediaTek and Realtek to fill the supply gap of networking chips for other applications, the sources stressed.

With high price-performance ratios, MediaTek's Wi-Fi core chips have gained a significant presence in the China market for non-automotive applications. Realtek recently has also managed to penetrate its networking chip solutions into medium-and high-end applications beyond cars and industry control systems, representing a major breakthrough in its market expansion efforts, the sources said.

Actually, downstream clients have become more willing to adopt networking chips from Taiwanese suppliers, who can offer shorter delivery lead times than their international peers allocating more capacity for automotive and industry applications, the sources noted.

MediaTek and Realtek are gradually migrating to high-end networking chips for non-automotive segments to boost their profit margins and avoid price-cutting competition from Chinese peers, the sources said. Moreover, they are also striving to explore automotive applications, with Realtek already supplying automotive Ethernet chips to carmakers and expected to ship Wi-Fi and Bluetooth chip solutions to automotive clients in the near future.

By DIGITIMES