Demand for 5G smartphones is expected to pick up fast next year, with mobile SoC prices for these handsets to stay at high levels at least in the first half of 2020. Tight capacity at TSMC's 7nm node will prevent production cost for 5G mobile chip from falling and Andriod phone vendors will not have too many alternatives in terms of SoC supply: it's basically either Qualcomm or MediaTek. 5G mobile SoC pricing will stay above US$100, a few time that for 4G ones. Mobile applications are also expected to play a key role in reversing the memory price trend from freefall to recovery in 2020. Memory ASP could rally as much as 30% next year.
5G chip price to stay above US$100 in 1H20: 5G mobile SoC unit price will stay above US$100 in the first half of 2020, several times that for 4G solutions, as tight capacity at TSMC's 7nm node is likely to keep production cost at high levels, according to industry sources.
Memory ASP to rebound sharply in 2020: Average selling prices (ASP) for memory could rise as much as 30% in 2020, driven mainly by strong demand for server and mobile applications, according to industry sources.
