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Demand for Wi-Fi 6 SoC remains strong: IC Distributors
According to the latest report, sources at IC distributors said that demand for Wi-Fi 6 SoCs has been strong, and suppliers such as Realtek Semiconductor are still unable to fulfill their orders. Realtek can fulfill 60% of its total orders for Wi-Fi 6 SoCs, the sources said, adding that the adoption rate of Wi-Fi 6 chips in PC and router applications will exceed 70% in the second half of this year.
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The price of Wi-Fi 6 SoCs is also relatively stable compared to other chips, the sources noted. Chips for consumer electronics applications, in particular, are already facing downward pressure amid a rapidly slowing end market. Prices for Wi-Fi 5 and Wi-Fi 4 SoCs are also about to start dropping, the source added.
In addition, the supply of network switch ICs remains tight, according to sources. Its chip prices are still supported by strong demand, especially for high-end switch products.
Companies specializing in the distribution of networking chips and equipment include WT Microelectronics, Edom Technology, and GMI Technology, the report said. Compared with the forecast provided by peer WPG, WT Micro’s business outlook for the second half of 2022 is more optimistic, and revenue is expected to increase continuously through the fourth quarter of this year.