Small Taiwan DVD chip firm (MediaTek) to take on phone giants

According to Forbes will
MediaTek, known best as (overclockable) chipset maker for Lite-On drives, also
try to take a share of the mobile phone chipset market. The Taiwanese company
will find big chipset makers like Motorola and Texas Instruments against it.
MediaTek has already taken a large market share from other US and Japanese
companies in the optical storage market, due its low cost and highly integrated
chips.

Also the financial results of MediaTek are not bad all and there
is a big chance the company will take its share of the mobile phone chip market.
After two years of research the company has decided to make the move and
it aims that in the future manufacturers will go to Taiwan for all their
chip needs.

"I think
it will take a longer time than most people think for them to approach
this market," Chen said.
Nonetheless, it is
a huge market. Chen reckons that even if Mediatek wins only two percent of
the global market, its revenues would rise by 10 percent.
"In mobiles, the (profit) margins are not as high as ODD,
but the market size is much larger," said Mediatek's
Yu.


In any case, the company plans to
start modestly by targeting the growing crop of mobile phones makers in
Taiwan, which are set to produce 42.5 million cell phones this year, up 20
percent from last year, according to local estimates.
Most forecasts for global mobile phone production range
from 400 million to 450 million units, giving Taiwan around a 10 percent
share.
Mediatek argues that these Taiwan
manufacturers will not have an edge over foreign manufacturers if everyone
turns to the same place for
microchips.

Source: Forbes

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