Want China Times — MediaTek lost its title as the most profitable integrated circuit designer in terms of earnings per share (EPS) in Taiwan in the first half of this year in the wake of slowing global demand for smartphone chips, according to figures released Saturday. Smartphone chips serve as the largest revenue source for MediaTek, accounting for more than 60% of the IC designer’s total sales.
Leading mobile phone chip suppliers have seen the impact of a price war that has led to consolidation in the sector, according to Shanghai’s China Business News. Taiwan-based chip designer MediaTek recorded a 13% year-on-year sales decline and a 49.2% drop in net profits when reporting its second-quarter results, while US-based Qualcomm saw sales and net profit drop 14% and 47%, respectively, during its fiscal third quarter, the paper said.
Digi Times — Shipments of smartphone application processors in the China market are expected to grow 9.7% and 16% on quarter, respectively, in the third and fourth quarters of 2015, according to Digitimes Research. Overall, China’s smartphone-use AP shipments will increase 23.5% on year to 300 million units in the second half of 2015, Digitimes Research estimated.
Digi Times — The global smartphone applications processor (AP) market registered a solid 20% year-over-year growth to reach US$5.3 billion in the first quarter of 2015, according to Strategy Analytics. Qualcomm, Apple, MediaTek, Samsung LSI and Spreadtrum grabbed the top-five revenue spots in the global smartphone AP market in the first quarter of 2015, said Strategy Analytics.
Digi Times — MediaTek has posted a filing with the Taiwan Stock Exchange (TSE) stating it was not the source of a Chinese-language Economic Daily News (EDN) report indicating the company is considering a merger with Nvidia. MediaTek added it does not comment on market rumors.
Mergers and acquisitions remain an effective strategy for chipmakers to be bigger to compete in the global marketplace, according to MediaTek chairman MK Tsai. For any chipmakers aiming for the global market, to enhance their worldwide competitiveness as timely and as efficiently as possible has become a top priority. While continuing to upgrade and move into producing higher value-added products, Taiwan-based IC firms would also like to receive support from the government such as positive incentives, Tsai indicated.
Taiwanese PC vendor Acer and chip maker MediaTek on Wednesday called for an integrated ecosystem for the Internet of Things (IoT) — the concept of connecting ordinary household devices to the internet. Addressing the summit forum of Computex Taipei, Acer founder and honorary chairman Stan Shih said he expected the arrival of a new computing and communication world in the future that will be driven by cloud computing and IoT technologies.
MediaTek is set to grow substantially its 4G chip market share in China during the second half of 2015 so that the company is able to meet its target market share for all of the year, market sources have suggested. MediaTek currently has an about 20% share of China’s 4G chip market, the sources estimated. MediaTek is expected to boost its 4G chip market share in China to more than 50% in the second half of 2015, according to its target market share for the year.
Taiwanese chip designer MediaTek confirmed on Monday it is developing a mobile chip for use in low-cost laptops running on Google’s Chrome operating system. The new chip is expected to hit the market by the end of this year or early next year, MediaTek president CJ Hsieh said at the company’s media and analyst cocktail party at Computex Taipei, the world’s second-largest computer trade show. MediaTek will count multiple major manufacturers of Chromebooks as its clients when their new laptops are released, said Hsieh, who cautioned that the company’s customer base in the Chromebook market would be limited initially.
Taiwan’s MediaTek, a major supplier of handset chips to Chinese manufacturers, launched the Helio P10 system-on-a-chip (SoC) Monday at Computex Taipei to focus on the growing demand for slim smartphones with strong features. The Helio P10 runs a 2GHz octa-core 64-bit processor based on the Cortex-A53 architecture and a 700MHz dual-core 64-bit Mali-T860 graphic processing unit. The SoC will be available in the third quarter of this year and is expected to be in consumer products in late 2015, according to MediaTek.
Xiaomi, which uses Qualcomm’s Snapdragon 810 SoC for its Note-series smartphones, will likely switch back to MediaTek for its flagship smartphones, according to industry sources. Xiaomi uses Qualcomm’s Snapdragon 810 SoC for its latest flagship series – Mi Note – compared to the company’s previous flagship models utilizing MediaTek’s solutions. Nevertheless, MediaTek with its recently-unveiled 10-core chip, the Helio X20, is expected to attract orders from Xiaomi, the sources said.
Taiwan’s major IC foundries will see their combined revenues decrease 4.5% sequentially in the second quarter of 2015, according to Digitimes Research. Weaker-than-expected smartphone shipments as well as downward pressure on the world economy have prompted many of IC suppliers to continue adjusting their inventory levels.
MediaTek’s recently-introduced Helio X20 SoC series for high-end smartphones has reportedly received positive feedback from international smartphone vendors. MediaTek’s new 10-core chip solutions will likely attract orders from the company’s existing clients including Sony, LG Electronics, HTC, ZTE, Lenovo and Meizu, according to industry sources. Huawei and Xiaomi have also expressed interest in MediaTek’s Helio X20 chips, said the sources.
MediaTek established itself as the world’s second-largest maker of Long-Term Evolution (LTE)-enabled cellular baseband processors in 2014, according to market research firm Strategy Analytics. Qualcomm, which has had near total dominance of the high-growth LTE baseband segment in the past and had a 95% share in 2013, maintained its top spot in the segment in 2014, Strategy Analytics said, without disclosing its specific market share.
MStar Semiconductor has completed its acquisition of fellow IC design company Alpha Imaging Technology, according to a MediaTek filing with the Taiwan Stock Exchange (TSE). MediaTek announced that subsidiary MStar has acquired about 29.89 million shares of Alpha exceeding the required minimum. MStar will continue to acquire the remaining shares.
TAIPEI–MediaTek Inc. (聯發科), one of Taiwan’s leading integrated circuit designers, has decided not to revise its 2015 target for smartphone chip shipments, although it has cut its shipment forecast for the second quarter of the year. At an investor conference Thursday, MediaTek President Hsieh Ching-jiang (謝清江) said the company remains optimistic that market demand in the second half of this year will offset the slow season effects of the first half. MediaTek, therefore, is maintaining its shipment target of 450 million units for the whole of 2015, he said.
Leading telecom chipmaker Qualcomm is speeding up its development of 4G product lines and is scheduled to introduce a new chip with advanced carrier aggregation technology Cat 10 before the first half of this year, reports our Chinese-language sister paper Commercial Times. It took eight years for the Chinese market to reach 100 million 3G users but it has only taken one year to get to 100 million 4G users. This is the result of the rapid growth in mobile internet demand in the country, Qualcomm China head Wang Xiang said at the company’s innovation summit in Beijing on April 27.
MediaTek has announced that its MT6735 quad-core 4G 64-bit full-mode chip solution has been adopted by China-based ZTE, Lenovo and TCL for their upcoming smartphones. MediaTek indicated that volume production for the MT6735 SoC has kicked off. The solution will be incorporated into several new smartphones set to roll out in May.
Fabless chipmaker MediaTek is expected to enter volume production of its 10-core SoC series for smartphones in the third quarter of 2015, according to industry sources. The chip solutions would be built using TSMC’s 20nm process technology. Codenamed Helios X20, the solution will be aimed at brand smartphone vendors particularly China-based ones, which are looking to upgrade their flagship device processor features to 10 cores, the sources said.
MediaTek, a leading Taiwanese IC design company, was the 10th largest semiconductor brand supplier in the world in 2014, up five notches from a year earlier, according to market information advisory firm IHS. In cracking the top 10, MediaTek became the first Taiwan-based IC supplier to rank among the 10 leading chip brands in the world. MediaTek’s jump in the rankings was propelled by a 53.6% rise in sales in 2014 to US$7.02 billion, which IHS attributed in part to the acquisition of smaller rival MStar Semiconductor Inc. in February last year.