Lower prices forcing manufacturers to abandon the development of their own SoC
Various manufacturers, including Xiaomi, LG Electronics and Sony, have expressed interest in developing single-chip systems for its smartphones on its own. It is in their opinion, should strengthen the position of companies on the market and to reduce dependence on market leaders MediaTek and Qualcomm.
However, according to market observers, the decline in prices for single-chip systems for smartphones along with the increasing cost of manufacturing an SoC according to the norms of 10-nanometer of technological process forcing manufacturers to think about the feasibility of developing a SoC on their own.
With transition on new tehprotsess profit on each device may not be enough to cover the cost of creating a SoC. The source adds that another limiting factor that keeps the company from creating a SoC, especially the top, is the decline in sales of smartphones.
While Apple, Samsung and Huawei will not be afraid of these factors and present a new system on a chip next year, adds the source.