More than half of all smartphone application processor (AP) chip shipments this year are expected to be based on advanced processes at 5-nanometer or below.
According to market researcher Counterpoint Research on the 11th, advanced processes in the 2–5-nanometer range will account for about 51% of smartphone AP system-on-chip (SoC) shipments this year. That is up sharply from 43% last year.
With on-device generative artificial intelligence (AI) onboard, improving the performance of smartphone AP SoCs that combine the central processing unit and graphics processing unit has become more important. In response, manufacturers are accelerating the transition to advanced processes.
In particular, shipments appear to be increasing as midrange smartphones shift to 4- and 5-nanometer processes and as mass production of 3-nanometer SoCs by Samsung and major Chinese smartphone makers expands.
Total sales of advanced-process AP SoCs are expected to rise 15% year over year on the back of higher average selling prices (ASP), accounting for more than 80% of total smartphone AP SoC revenue.
Counterpoint Research analyzed that Qualcomm and MediaTek will benefit from the expanding share of advanced processes.
Senior researcher Shivani Parashar said, "Qualcomm's shipment share in 2025 is expected to reach about 40% and grow 28% year over year, overtaking Apple for the top spot."
Qualcomm has a low share of 4G, and most of its own lower- to mid-priced 5G SoCs are being moved to 4- and 5-nanometer processes, so additional gains are expected.
MediaTek's advanced-process-based shipments are also projected to increase 69% year over year, helped by the shift of its midrange lineup to 4- and 5-nanometer processes.
On the manufacturing side, TSMC's shipments of advanced-process smartphone AP SoCs are expected to rise 27% year over year this year.
Analyst Akash Jatwala said, "TSMC will account for more than three-fourths of advanced-process smartphone SoC shipments in 2025."
In 2026, as both TSMC and Samsung Foundry begin mass production of 2-nanometer process-based smartphone SoCs, the share of advanced processes is forecast to increase to 60%.