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MediaTek unseats TI as No.2 cellular baseband chip vendor.

Taipei, March 15, 2010 (CENS)--By shipment volume and revenue, MediaTek Inc. was ranked as the world's No.2 vendor of cellular baseband chips in the third quarter of last year, shooting down Texas Instruments (TI) from that position, according to market consulting firm Strategy Analytics.

In the third quarter of 2009, total cellular baseband revenue reached US$3.02 billion, with strong growth coming from GSM/GPRS/EDGE, W-CDMA and CDMA markets, according to Strategy Analytics.

Worldwide, MediaTek commanded 24% by shipment volume count and 18% by revenue count, next only to Qualcom's 19% in shipment volume and 38% in revenue.

Throughout the third quarter of last year, global shipments of the chips reached 415 million sets and global revenue generated from sales of the chips totaled US$3.02 billion.

Strategy Analytics' latest study shows that global shipments and revenue of cellular baseband chips grew for the first time in the third quarter of 2009 since Q3 2008. The company ascribes the growth mostly to increased demand in the yearend holiday season.

According to the latest study, total cellular baseband revenues in 2008 were US$11.15 billion and the provisionally estimated revenues for 2009 were US$$11.04 billion.

Strategy Analytics' study shows handset chip market has gone through some radical changes over the past three years, with Freescale and TI announcing their intentions to withdraw from the cellular baseband market in Q3 2008. Their phase-outs left about 23% of the total W-CDMA baseband revenue market share up for grabs. Qualcomm, ST-Ericsson, MediaTek, Infineon and Broadcom are best positioned to remain long-term players in the cellular baseband market.

In spite of the setback in baseband market, TI remains the world's No.1 player in terms of shipments of various cellular chips, representing 26% of the global shipment. Mainly focused on high-value product lineups, Qualcomm accounted for only 19% of global baseband shipment, the No.3 position in this regard.

Major Cellular Baseband Suppliers and Their Q3, 2009 Market Shares

((Ken Liu))

Ranking   Company       Revenue Share (%)   Shipment Share (%)

   1      Qualcomm             38                   19
   2      MediaTek             18                   24
   3      TI                   15                   26
   4      ST-Ericsson          10                   10
   5      Infinion              7                   11
   6      Broadcom              4                   3
   7      Freescale             2                   2

Source: Strategy Analytics
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Title Annotation:Texas Instruments
Author:Liu, Ken
Publication:The Taiwan Economic News
Date:Mar 15, 2010
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