Next Year, TSMC Reportedly Predicts a Surge in 5G Smartphone Shipments, With iPhone 12 Possibly Adding to Those Numbers


5G networks started going live in various countries this year. Side by side, mobile manufacturers like Samsung and LG rolled out their debut 5G devices. As more manufacturers are expected to offer phones with support for next-generation cellular connectivity, we can expect the popularity of such handsets to rise next year. That being said, TSMC has reportedly painted a pretty optimistic picture as far as 5G smartphone shipments for 2020 are concerned.

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According to insiders, TSMC expects 300 million 5G smartphone shipments for 2020. Most other reports peg the number at 200 million units. TSMC’s positivity is apparently fueled by the orders it has received from chip clients. In fact, demand is said to be so good that the foundry’s 7nm nodes have apparently been running at full capacity.

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Because of the surge in demand, TSMC intends to spend an additional $15 billion on technology and capacity this year, which is almost 50 percent more than what was originally planned. The budget will apparently remain the same in 2020. TSMC’s Chief Executive Officer C. C. Wei reportedly says that the chip manufacturer is a lot more optimistic than it was six months back. According to him, 5G demand is much greater than what the company had expected.

TSMC has also revised its estimates for 5G handset penetration rate next year. While previously the projection was a single digit, the percentage is now in the mid-teens. Wei claims that the demand will be boosted by large countries that are eager to expedite 5G rollout in the coming months.

While 5G handsets are out of reach of budget-conscious consumers right now, next year, mid-range and even entry-level phones are expected to get support. Moreover, coverage will also improve and this will compel smartphone users to upgrade. Moreover, Apple’s rumored iPhone 12, which might even be called the iPhone 5G, and Google’s Pixel 4 5G will likely help that overall tally for next year.

Will 5G connectivity factor into your smartphone upgrade decisions next year? Let us know by commenting below.

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News Source: DigiTimes