MediaTek Inc (聯發科), the world's largest maker of chips for DVD players, yesterday reported an 81 percent increase in first-quarter profit on strong consumer demand for DVD recorders and handset sales.
Profit rose to NT$5.15 billion (US$161 million), the company said. That compares with a NT$2.84 billion profit a year earlier and NT$5.31 billion profit in the previous quarter.
MediaTek, which compete head-to-head with Sunplus Technology Inc (凌陽) and Zoran Corp of the US, forecast at least a 10-percent increase in its second-quarter sales from the first quarter, Mediatek Chairman Tsai Ming-chieh (蔡明介) told an investor conference in Hsinchu.
Gross profit margins were expected to decline by 3 percent in the second quarter, Tsai added.
Mediatek's shares closed 1.03 percent lower at NT$386 on the Taiwan Stock Exchange before the release of its quarterly earnings.
Separately, Taiwan Semi- conductor Manufacturing Co (TSMC,
TSMC, the world's largest supplier of made-to-order chips, may win more orders from MediaTek to make chips for mobile phones, the Taipei-based, Chinese-language newspaper said.
MediaTek's Chief Financial Officer Yu Ming-to (喻銘鐸) declined to comment on the report, the paper said.
Analysts see MediaTek's handset chips as a promising business, despite competition from established heavyweights like Texas Instruments Inc, the world's top supplier of mobile phone chips.
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