Qualcomm recently held a press conference in Hong Kong, where it officially announced the launch of a mobile chipset that supports 5G technology. Although the official 5G standard is still pending finalization, Qualcomm claims that this new chip can achieve data transmission speeds exceeding 1 gigabit per second. It has already been successfully tested on the 28GHz frequency band, which is expected to be used in future 5G networks. This move has led many analysts to believe that Qualcomm is once again leading the charge in the 5G era, leaving its competitors behind.
As 4G becomes more widespread, 5G is quickly becoming the next big focus in the telecommunications industry. While 4G significantly boosted mobile internet usage and improved user experiences, 5G is expected to revolutionize the Internet of Things (IoT), making the concept of "Internet of Everything" a reality.
Imagine downloading an ultra-high-definition movie in just seconds—this kind of high-speed 5G service is no longer science fiction. In fact, the 2018 PyeongChang Winter Olympics will be the first ever to use 5G technology. The transmission speed is expected to reach up to 10Gbps, which is ten times faster than current 4G standards.
According to Xie Yushan, a researcher at the Tuoba Industrial Research Institute, 2018 is set to be the first year of 5G, with more applications emerging by 2019. Meanwhile, market research firm CCSInsight predicts that by 2020, global 5G networks will be fully deployed, and by 2023, there could be as many as 1 billion 5G users worldwide, with China accounting for half of that number.
A recent report titled “China-US 5G Controversy†published on the Financial Times website highlights the growing competition between the two countries. Despite being the world's largest mobile market, with China Mobile alone having over 873 million subscribers, China’s share of 5G intellectual property remains limited. However, the country is now actively working to secure a larger role in the design of next-generation mobile services. The report suggests that China is poised to gain more influence in the field of 5G innovation in the coming years.
Jeffery estimates that 12.5% of the core patents in the current 4G standard are owned by Qualcomm. In the nine months ending in June this year, the company earned $4.4 billion in royalties. If China manages to gain more control over 5G, it could impact Qualcomm’s position, while benefiting Chinese equipment manufacturers.
With the 5G era approaching rapidly and China’s 5G market expanding, major chip manufacturers are intensifying their efforts to develop advanced 5G products. Chip vendors must focus on features like high bandwidth, low latency, and high access density to meet the demands of the next generation.
Some analysts argue that even though 5G commercialization is expected around 2020, the success or failure of the global 5G chip market may be determined during the design-in phase between 2018 and 2019. Therefore, the competition among smartphone manufacturers has already begun, and early wins could shape their future market positions.
Currently, Qualcomm has launched the world’s first 5G modem, the Snapdragon X50 series, and is actively pushing for global standardization of 5G technology. Spreadtrum is also investing heavily in 5G chip development, planning to release its first 5G commercial chip supporting non-standalone networking before the end of 2018. At the same time, MediaTek is accelerating its baseband chip development to stay competitive in the evolving 5G landscape.
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