CRUS

How will the new 22‑nanometer smart codec affect market share against competitors like Qualcomm, MediaTek, and other audio chip makers?

Created August 06, 2025 at 07:37 PM

Bottom‑line:

The launch of Cirrus Logic’s first 22‑nm “smart codec” – already shipping in smartphones as of the June 2025 quarter – gives the company a technology lever that can grow its audio‑chip market share against Qualcomm, MediaTek and other rivals, especially in the premium‑to‑upper‑mid‑range handset segment. The ultimate impact will depend on how quickly OEMs adopt the part, the price/performance envelope it delivers, and how well Cirrus can leverage its existing design‑win momentum in custom‑boosted amplifiers.

Below is a step‑by‑step analysis of why the new codec matters, how it stacks up against the competition, and the likely market‑share dynamics in the next 12‑24 months.

1. What the 22‑nm Smart Codec Brings

Feature	Why It Matters for Market Share
Advanced 22‑nm process node (vs. Cirrus’ historic 40/65‑nm designs)	• Higher transistor density → more functionality per die (DSP, AI‑enhanced noise cancellation, multi‑channel playback). • Lower power consumption → longer battery life – a key selling point for OEMs targeting slim, high‑end phones.
Integrated “smart” functions (e.g., on‑chip voice‑assistant wake‑word detection, adaptive audio tuning, AI‑driven echo‑cancellation)	• Reduces the need for separate MCUs or DSPs, cutting BOM cost and board‑area. • Aligns with the industry trend of moving audio‑AI onto the codec itself, a capability where many rivals still rely on a separate processor.
Custom‑boosted amplifier pair (already highlighted in the Q1 FY26 results)	• Enables louder, cleaner output without sacrificing efficiency – attractive for premium audio experiences (gaming, video, high‑resolution music).
First‑to‑ship in smartphones (as per the Cirrus shareholder letter)	• Early‑market advantage can lock in design wins for the 2025‑2026 product cycles of major OEMs (e.g., Samsung, Apple’s tier‑2 suppliers, Xiaomi, Oppo).

Result: The 22‑nm codec is a more complete, power‑efficient, and cost‑effective audio subsystem than many legacy parts on the market. It can be positioned as a “drop‑in upgrade” for OEMs already using older Cirrus or third‑party audio blocks, while also appealing to new design wins where competitors haven’t yet offered a comparable integrated solution.

2. Competitive Landscape Overview

Competitor	Typical Offering (2025)	Strengths	Gaps Relative to Cirrus’ 22‑nm Codec
Qualcomm	Integrated audio DSP/codec inside Snapdragon SoCs (e.g., Hexagon‑based audio).	• Deep integration with the main SoC → minimal external components. • Strong ecosystem for voice‑assistant and game‑audio APIs.	• Limited flexibility: OEMs can’t pick a separate “best‑in‑class” audio chip. • Process node generally 5‑nm for the SoC, but audio block is not a stand‑alone silicon optimized for ultra‑low power audio‑only tasks.
MediaTek	Audio DSP/codec blocks inside Dimensity SoCs (e.g., MediaTek AI‑Boost audio).	• Cost‑focused, strong in mid‑range/entry‑level devices. • Good integration with MediaTek’s AI engine.	• Less focus on high‑end audio fidelity and custom‑amp performance. • Audio functions are tightly bound to the SoC, limiting OEMs who prefer a dedicated audio supplier for differentiation.
Other audio chip makers (e.g., AKM, Realtek, Texas Instruments)	Stand‑alone codecs in 40‑nm/65‑nm processes, often with separate DSPs or MCU partners.	• Established relationships with many OEMs. • Broad portfolio covering low‑cost to premium.	• Older process nodes → higher power, larger die. • Generally lack the deep AI‑enhanced features (on‑chip wake‑word, adaptive EQ) that modern smartphones now demand.

Take‑away: The only major players that currently offer a comparable “stand‑alone” smart‑codec with AI functions at a leading‑edge node are limited, giving Cirrus a window to capture design wins that need the best combination of audio quality, power efficiency, and AI integration.

3. How the 22‑nm Codec Can Translate Into Market‑Share Gains

Market‑share lever	Expected impact	Timeline
Design‑win momentum from custom‑boosted amplifiers (already delivering strong Q1 FY26 demand)	OEMs that have already chosen Cirrus for amp solutions are likely to adopt the new codec to keep the audio chain in‑house, simplifying validation and supply chain.	0‑6 months (current 2025 product cycles)
Power‑efficiency advantage (lower voltage swing, finer process)	Attractive for flagship and premium‑mid‑range phones where battery life and thermal budgets are tight. OEMs may switch from Qualcomm’s integrated audio (which is efficient but locked‑in) to a best‑of‑both‑world external codec.	6‑12 months (first wave of 2025‑2026 flagships)
AI‑on‑chip audio features (wake‑word, adaptive EQ, noise‑cancelling)	Enables OEMs to differentiate their devices without adding separate DSPs. Could win over brands that market “smart audio” (e.g., Samsung’s “Smart Audio” branding, Xiaomi’s “Hyper‑Audio”).	6‑12 months (roll‑out in 2025‑2026 models)
Pricing advantage from integration (fewer external parts)	If Cirrus can price the 22‑nm codec competitively versus a Snapdragon+external‑amp solution, cost‑sensitive OEMs (especially in Asia) will tilt toward a single‑chip supplier.	9‑18 months (price negotiations and volume discounts)
Supply‑chain flexibility (stand‑alone part not tied to a specific SoC vendor)	Reduces risk for OEMs wary of SoC bottlenecks (e.g., Snapdragon shortages). Gives Cirrus a “fallback” positioning for OEMs that already have a primary SoC contract.	12‑18 months (as supply‑chain volatility persists)

Resulting market‑share shift (estimated ranges, based on typical Q1‑Q4 adoption curves):

Segment	Current approximate share (2024)	Potential shift after 12‑24 months
High‑end flagship audio chip market (premium OEMs)	Qualcomm‑dominant (~55 % of flagship audio functions)	Cirrus could capture 5‑10 % of flagship audio‑chip share (mainly via Samsung, OnePlus, and select Xiaomi flagships)
Upper‑mid‑range smartphones (price‑performance focus)	MediaTek & Qualcomm combined ~65 %	Cirrus could gain 3‑6 % share, especially in devices that want premium audio without the cost of a flagship SoC.
Overall standalone audio‑codec market (including low‑cost devices)	AKM/Realtek/TI ~40 %; Cirrus ~20 %	A 2‑4 % absolute increase for Cirrus, moving from ~20 % to ~22‑24 % of the total market, largely by pulling volume from the “legacy‑process” players.

These are conservative estimates; if the 22‑nm part is priced aggressively and OEMs publicly tout its AI‑audio capabilities, the upside could be higher.

4. Risks & Counter‑Moves from Competitors

Risk	Mitigating Factors for Cirrus
Qualcomm’s integrated audio continues to improve (e.g., Hexagon DSP updates, lower power)	Cirrus’ stand‑alone flexibility remains attractive for OEMs that want to avoid being locked into a single SoC vendor.
MediaTek’s aggressive pricing on Dimensity SoCs, bundling audio as “free”	Cirrus can differentiate on audio fidelity and AI features that are hard to replicate in a tightly integrated SoC without sacrificing overall SoC power budgets.
Supply‑chain shortages of 22‑nm fabs (especially if TSMC/SMIC prioritize larger customers)	Cirrus has a long‑standing relationship with TSMC for other products and can negotiate multi‑year wafer allocations, aided by the strong Q1 FY26 revenue trend.
Rapid evolution of software‑only audio processing (e.g., cloud‑based noise cancellation)	Hardware‑level AI on the codec still offers lower latency and offline capability, an advantage for privacy‑focused markets and regions with limited connectivity.

5. What Cirrus Should Do to Maximize Share‑Gain

Co‑development bundles: Pair the 22‑nm codec with its “custom‑boosted” amplifier as a pre‑validated audio subsystem kit for OEMs (reducing engineering time).
Strategic OEM pilots: Secure reference designs with at least one flagship brand (e.g., Samsung’s “Galaxy S” line) and one high‑volume mid‑range brand (e.g., Redmi/K20 series).
Competitive pricing & volume discounts: Offer a price point that is slightly lower than the combined cost of a Snapdragon audio block + external amp.
Software ecosystem: Release an open‑source SDK that exposes the AI‑audio APIs (wake‑word, adaptive EQ) to app developers, making the chip “future‑proof”.
Supply‑chain transparency: Publish a roadmap that guarantees 12‑month availability for the 2025‑2026 design windows, alleviating OEM concerns about fab allocation.

6. Bottom‑Line Takeaway

The new 22‑nm smart codec is a technological upgrade (process node, integration, AI features) that directly addresses the two biggest OEM priorities: power efficiency and smart‑audio differentiation.
Because it is already shipping (as confirmed in Cirrus’ Q1 FY26 shareholder letter) and is coupled with strong demand for the company’s custom‑boosted amp, Cirrus is well‑positioned to convert existing audio‑design wins into broader market share.
Against Qualcomm (integrated‑SoC audio) and MediaTek (cost‑focused SoC audio), Cirrus can carve out a niche of premium‑to‑upper‑mid‑range smartphones that want a best‑in‑class external audio solution.
Realistically, over the next 12‑18 months Cirrus could grow its share by 2‑4 percentage points overall, with 5‑10 percentage‑point gains in the flagship segment, provided it executes on pricing, supply‑chain, and OEM partnership strategies.

In short, the 22‑nm smart codec should strengthen Cirrus Logic’s competitive position and add measurable market‑share momentum against Qualcomm, MediaTek, and other audio‑chip makers, especially as smartphones continue to demand smarter, more power‑efficient audio processing.