Chip designers say the worst of demand is over and Huawei's shipments will increase

Recently, the supply chain of mobile phone-related chips has experienced a wave of client pull. On November 6, Mobile phone China noticed that IC designers said that the worst period of demand has passed and the market is gradually picking up. It is expected that next year, the introduction of terminal generated AI into the mobile phone market will detonate the tide of replacement, drive the market recovery, and feel more obvious recovery momentum in the third quarter of next year.

In the past two years, after revisions, IC designers have noted that the mobile phone market is likely to grow by a mid-single digit percentage next year, according to the assessment of research institutions.

Industry insiders believe that the recent demand performance of mobile applications is indeed better than that of laptop and TV applications. Entering next year, the first half of the year is usually the off-season, the second quarter may begin to gradually warm up, evaluate the mobile phone supply chain performance of the peak season in the second half of next year, should be better than the second half of this year and the first half of next year.

In the previous market trough period, the demand for new machines was weak, and the market demand for second-hand refurbished machines was more obvious. In recent years, the rise of generative AI applications has begun to extend from the cloud to the terminal, which has brought new hope to the overall smartphone market. The industry is looking forward to the explosive power of terminal generative AI, focusing on whether it can become a killer application and how many replacement markets it can stimulate.

On the other hand, IC design factory said that the use of OLED panels will be more and more models, previously only penetrate to the high-end models, but more and more high-end models also follow, and most folding machines use OLED panels, so the relevant proportion may be more than 40% from now, in the future to reach half the level, which will also bring business opportunities for OLED-related IC designers