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 5G standard is still under development, the company claims that this new chip can achieve data transfer speeds exceeding one gigabit per second and has already been successfully tested on the 28GHz band, which is expected to be used in future 5G networks. Analysts believe that Qualcomm is once again leading the charge in the 5G era, leaving its competitors behind.
As 4G becomes more widespread, 5G is now the next big focus for the telecommunications industry. While 4G revolutionized mobile internet access and improved user experiences, 5G is expected to take things even further by driving the growth of the Internet of Things (IoT) and making the "Internet of Everything" a reality.
Imagine downloading an ultra-high-definition movie in seconds—this kind of fast 5G service is not far off. In fact, the 2018 PyeongChang Winter Olympics will be the first ever to showcase 5G technology. The transmission speed is expected to reach up to 10Gbps, which is ten times faster than current 4G speeds.
According to Xie Yushan, a researcher at the Tuoba Industrial Research Institute, 2018 marks the beginning of the 5G era, with more applications expected to emerge by 2019.
Recent forecasts from CCSInsight suggest that global 5G networks will be fully deployed by 2020, and by 2023, there could be as many as 1 billion 5G users worldwide, with China accounting for half of that number.
A report titled "China-US 5G Controversy," published on the Financial Times website, highlights that although China is the world’s largest mobile market, with over 873 million subscribers on China Mobile alone, its share of intellectual property in 5G remains relatively small. However, China is actively working to gain a larger stake in the next generation of mobile data services. The report suggests that China is likely to have a growing influence in the field of 5G knowledge and 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 first nine months of this year, the company earned $4.4 billion in royalties. If China succeeds in dominating the 5G market, Qualcomm could face challenges, while Chinese manufacturers may benefit significantly.
With the rapid arrival of the 5G era and the expanding 5G market in China, major chip manufacturers are continuously advancing their 5G product development. Chip vendors must also adapt to the demands of 5G, such as high bandwidth, low latency, and high connection density.
Some analysts believe that even though 5G commercialization is expected around 2020, the early success or failure of the global 5G chip market may be determined between 2018 and 2019. Therefore, the competition among smartphone manufacturers has already begun, and their performance during this period will 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 unified standards for 5G. Spreadtrum is also investing heavily in 5G chip development, planning to release its first 5G commercial chip supporting non-standalone networking in the first half of 2018. Meanwhile, MediaTek is accelerating its baseband chip development efforts.
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