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Broadcom outlook helps Mediatek shares

Mediatek Inc (聯發科), Taiwan's largest chip designer, posted its biggest two-day gain in more than two years in Taipei trading after larger rival Broadcom Corp forecast revenue for the current quarter that beat some analyst's estimates.

Mediatek added 5.5 percent to NT$334 at the close of trade, taking its two-day increase to 13 percent, the largest since Aug. 4, 2005. The TAIEX slid 3.3 percent.

Broadcom, the world's second-largest chip designer, forecast last Thursday that revenue for the current quarter will gain to as much as US$1.01 billion, compared with the US$993 million average of 21 analysts' estimates compiled by Bloomberg.

Hsinchu-based Mediatek will also benefit from rising sales of mobile phones in China, the world's biggest market by users.

Mediatek may win orders because of increased sales of so-called white-label handsets in China, the United Daily News saidd yesterday, without citing anyone.

The company is a main supplier of chips for white-label phones, which are sold under little-known brand names in China and will account for up to 25 percent of the global market, the paper said, without giving further details.

Mediatek's shares have fallen 21 percent this year, lagging behind a 12 percent decline in the TAIEX.

China added 86.2 million mobile-phone users last year for a total of 547.3 million, the Ministry of Information Industry in Beijing said.
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