IC distributors: Wi-Fi 6 SoC demand continues to be strong

On August 18, DIGITIMES reported that sources at IC distributors said demand for the Wi-Fi 6 SoC had been strong and that suppliers such as Realtek Semiconductor were still unable to fulfill their orders.

Sources said Realtek could complete 60 per cent of its total Wi-Fi 6 SoC orders, adding that the adoption rate of Wi-Fi 6 chips in PC and router applications would exceed 70 per cent in the second half of this year.

The source pointed out that compared with other chips, the price of Wi-Fi 6 SoC is also relatively stable. Chips used in consumer electronics applications, in particular, are already under downward pressure amid a rapid slowdown in the end market.

The prices of Wi-Fi 5 and Wi-Fi 4 SoC are also about to begin to fall, the source added.

In addition, according to sources, the supply of network switch IC is still tight. Its chip prices are still supported by strong demand, especially for high-end switch products.

Companies specializing in the distribution of network chips and devices 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 continue to grow through the fourth quarter of this year.