Starting this year, nearly every smartphone, tablet and laptop will need chips that comply with the new ultrafast cellular platform, 5G wireless.
And I’m happy to report that, right on schedule we have a new catalyst. And it’s a big one.
As a group, US wireless carriers just spent a record $80.9 billion for access to a critical 5G wavelength. These wavelengths that were up for grabs in this auction are the exact right kind for setting up 5G service
To make it clear just how much these companies are willing to spend for a chance to be a part of this buildout, it’s worth pointing out that the previous record for this kind of auction was only a bit more than half of this sale.
Not only that, but the amount of money spent on this spectrum is as much as four times the amount that was projected to be spent on it last summer.
These companies are so eager to spend big bucks for access to this spectrum because they foresee the massive profits to be made in 5G wireless.
And one way that 5G will create these profits will be by serving as a huge catalyst for semiconductor sales this year.