Handset chip designer MediaTek Inc (聯發科) yesterday dismissed speculation that a US$497 million deal to sell AutoChips Inc (傑發) to China’s largest digital map provider Navinfo Co Ltd (四維圖新) has hit a snag, saying the case is being reviewed by Chinese regulators.
Concern about a delay in the transaction dragged down MediaTek shares, which fell to a low of NT$238 before recovering to close at NT$240 yesterday in Taipei trading, down 0.41 percent from Monday.
“Navinfo has submitted the deal to China’s regulator for review in accordance with local rules. The project is undergoing a normal review process,” MediaTek spokesman David Ku (顧大為) said in a Taiwan Stock Exchange filing.
Photo: Chuo Yi-chun, Taipei Times
Ku’s remarks came after the Chinese-language Economic Daily News yesterday reported that the review had stalled, because the China Securities Regulatory Commission was concerned that Navinfo might overpay for the acquisition of AutoChips, which has seen falling revenues.
Hefei-based AutoChips supplies chips used in car entertainment and information devices.
The deal could fall through in a “worst-case scenario,” the report said.
“The report is media speculation and contradicts the case’s current reviewing,” Ku said in the filing.
MediaTek in May announced that it had agreed to sell an 83 percent stake in AutoChips to Navinfo in a bid it accelerate its expansion into the fast-growing telematics and advanced driver assistance systems (ADAS) markets in collaboration with the Beijing-based company.
The Hsinchu-based company has a long list of Chinese handset clients, including Oppo Mobile Telecommunications Corp (歐珀移動), Vivo Electronics Corp (維沃移動通信) and Xiaomi Corp (小米).
MediaTek expected to wrap up the share sale by this quarter, allowing it to book earnings between NT$10 billion and NT$12 billion (US$315.8 million and US$379 million) over a three-year period from this year.
A delay in the transaction this year would mean a reduction of NT$5 billion (US$158 million) in MediaTek’s estimated net profit for this year due to a lack of asset gains, it estimated five months ago.
Navinfo was suspended from trading on the Shenzhen Stock Exchange yesterday after it received notification from the China Securities Regulator Commission that it plans to hold a meeting in the near future to review an acquisition deal submitted by Navinfo along with a share issuance plan to fund the deal, information on the company’s Web site said.
Navinfo said its digital map is used by mainstream automakers such as German car giants BMW, Volkswagen, Mercedes-Benz and Japan’s Toyota.
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops, but a lifeline for growers struggling to make ends meet in a city-state with high prices and little vacant land. The future agriculture hub is part of a joint special economic zone launched last year by the two neighbors, expected to cost US$123 million and produce 10,000 tonnes of fresh produce annually. It is attracting Singaporean farmers with promises of cheaper land, labor and energy just over the border.
US actor Matthew McConaughey has filed recordings of his image and voice with US patent authorities to protect them from unauthorized usage by artificial intelligence (AI) platforms, a representative said earlier this week. Several video clips and audio recordings were registered by the commercial arm of the Just Keep Livin’ Foundation, a non-profit created by the Oscar-winning actor and his wife, Camila, according to the US Patent and Trademark Office database. Many artists are increasingly concerned about the uncontrolled use of their image via generative AI since the rollout of ChatGPT and other AI-powered tools. Several US states have adopted
RSS