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MediaTek starts delivery of 3g phone chips.

Taipei, Aug. 23, 2011 (CENS)--The Taiwan-based MediaTek Inc., the largest IC chip supplier on the island, has started delivery of its 3.75G phone chip, MT6573, to its Chinese customers in August.

In fact, the company has actively ventured into the 3G phone chip segment since last year and successfully settled a patent problem with Qualcomm, but couldn't drive up the shipment volume until the MT6573 has been heavily adopted by Chinese phone brands, including Lenovo, this year.

Another main factor enabling the company to materialize its foray into the 3G phone chip segment is steadily growing popularity of smartphones, as the consumer devices have heavily replaced traditional feature phones, making the company stand the chance of put more emphasis on development of 3G chips.

Unveiled this June, the MT6573 has gone into mass production in August. Market observers noted that the company's shipment of the 3G phone chip is estimated at about 800,000 units in August, and is likely to hit one million units a month in the fourth quarter of this year, with its annual shipment to total between 3.5 million and 4 million units.

To satisfy customers with better integrated chip solutions to smartphones, the company will also ship the MT6573 coupled with its newest 4-in-1 wireless combo chip, MT6620. Furthermore, the company will also deliver its 2.75G smartphone SoC (system on a chip) by the end of this year, showing its ambition to regain growth momentum in the remaining months of the year after struggling with flat business growths in the past months.

Institutional investors pointed out that Mediatek is determined to speed up its 3G phone chip business, in a bid to fend off fierce price competition in the segment for 2G phone baseband chips, which had racked the company for a time. With its 3G chips massively delivered to China and emerging countries, the company will be able to revive its revenue and profit growths in the future.

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Author:Chuang, Steve
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Aug 23, 2011
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