Chip Crunch Curtails Chipset Shipments by 15% in First Half

The global smartphone system-on-chip (SoC) market experienced a significant downturn during the first half of 2026 as the ongoing shortage of memory chips continued to disrupt production. According to a recent report by market research firm Counterpoint Research, worldwide smartphone chipset shipments declined by 15% compared with the same period last year.

The report attributes the slowdown to rising memory chip prices and persistent supply constraints, which have prompted smartphone manufacturers to scale back the production of new handsets.

Qualcomm and MediaTek Take the Hardest Hit

The two leading chipset manufacturers, Qualcomm and MediaTek, suffered the steepest declines during the period.

Compared with the first half of 2025, shipments from both companies fell by approximately 25%.

Demand for Qualcomm's flagship Snapdragon 8 Elite Gen 5 and other premium processors remained relatively subdued. Meanwhile, MediaTek's affordable 5G chipsets recorded a sharp drop in sales, although its flagship Dimensity 9500 series maintained comparatively stronger market performance.

Apple, UNISOC, and Samsung Defy the Downturn

Despite the broader market slowdown, Apple, UNISOC, and Samsung recorded growth in both demand and chipset shipments.

• Apple: Strong demand for the new iPhone 17 lineup significantly boosted shipments of its A19 and A19 Pro processors.
• UNISOC: As smartphone brands increasingly turned to 4G processors for entry-level devices due to the higher cost of 5G chipsets, UNISOC capitalized on the trend. The company also expanded sales through new partnerships with Xiaomi's Redmi and POCO smartphone series.

Market Outlook

According to Counterpoint Research analysts, the overall decline in smartphone chipset shipments for the full year 2026 is expected to reach approximately 14%.

The impact is likely to be particularly severe in the entry-level smartphone segment, where chipset shipments could fall by as much as 30%.

Industry experts also warn that the memory chip market is unlikely to return to normal before the second half of 2027, meaning supply constraints could continue to affect smartphone production and pricing over the coming months.

//DBTech/BMT/OR//