MediaTek Inc (聯發科) chairman Tsai Ming-kai (蔡明介) said yesterday that he still expects an increase in demand for smartphone chips in the second half of this year, despite a slowing global economy.
In an annual general meeting in Hsinchu, Tsai said the global smartphone industry would enter its peak season from next month onwards, driving sales growth for MediaTek, one of Taiwan’s leading chip designers.
In the first quarter of this year, chips used in cellphones accounted for up to 55 percent of MediaTek’s total sales, with China buying the bulk of its products.
Last year, faced with competition that was fiercer than ever, MediaTek posted NT$13.62 billion (US$454 million) in net profit, or NT$12.35 earnings per share (EPS), down sharply from the NT$30.94 billion in net profit, or NT$28.44 EPS recorded in 2010.
Tsai said the worst phase was almost over for the IC designer and the company was gearing up to broaden its product portfolio and win orders to strengthen its profitability.
On the back of robust demand for smartphones, MediaTek has forecast smartphone chip shipments in the second quarter would range between 18 million and 20 million units, up sharply from the 10 million recorded in the first quarter.
For all of this year, the IC designer anticipates smartphone chip shipments to touch 75 million units from rising demand from China and other emerging markets.
MediaTek president Hsieh Ching-jiang (謝清江) said at the shareholders’ meeting that the company would not focus just on the Chinese market, but also target global demand, while operating a total of 23 offices worldwide.
Hsieh added that MediaTek had recruited talent from all over the world, including Taiwan, Japan, South Korea, Demark and China, for its global expansion.
Meanwhile, shareholders at the meeting approved the company’s proposal to issue a cash dividend of NT$9 per share for last year’s performance. Based on MediaTek’s closing price of NT$258.00 on the Taiwan Stock Exchange yesterday, the dividend yield was about 3.49 percent.