Thu, May 30, 2019 - Page 12 News List

MediaTek cautious despite Huawei ban

‘TRADE SECRETS’:The company would focus on creating roadmaps for new products to satisfy customers’ demands and not dwell on external issues, a top executive said

By Lisa Wang  /  Staff Reporter

MediaTek president Joe Chen, second right, and others hold up a sign at a media event organized by the company at Computex Taipei yesterday.

Photo: CNA

Mobile phone chip supplier MediaTek Inc (聯發科) yesterday said it was maintaining its financial forecast for this quarter, downplaying speculation that Qualcomm Inc no longer supplying components to Huawei Technologies Co (華為) would be a boon for the Taiwanese firm.

“We are not revising our guidance for the second quarter,” MediaTek executive vice president David Ku (顧大為) told reporters on the sidelines of an event at Computex Taipeito unveil the chipmaker’s latest 5G chips .

“Everything meets our original expectations. The full-year guidance is also maintained,” Ku said. “We cannot comment on any single client. Clients’ orders are trade secrets.”

Last month, MediaTek projected that revenue this quarter would grow at a quarterly pace of 13 to 21 percent to between NT$53.8 billion and NT$59.6 billion (US$1.7 billion US$1.89 billion).

The company also said that annual revenue would grow mildly this year.

An official from Qualcomm Technology Inc, a wholly owned subsidiary of Qualcomm, on Monday said that the US company has stopped supplying chips to Huawei in compliance with the US government’s trade sanctions.

Huawei, the world’s No. 2 mobile phone vendor, sourced chips from Qualcomm and MediaTek for its mid and entry-level smartphones, while using chips from its semiconductor subsidiary HiSilicon Technologies Co (海思半導體) for its premium products.

Ku declined to comment on whether MediaTek would benefit from Huawei being blacklisted by the US.

The company would focus on creating roadmaps for new technologies and products to satisfy customers’ demands, rather than dwell on external developments, he said.

MediaTek said it has made progress in tapping into the 5G market, with its first 5G single chips for high-end Chinese smartphones likely to hit the market in the first quarter of next year.

Most of its customers have worked with it to roll out 5G smartphones next year, when shipments of 5G devices are expected to reach 50 million units, MediaTek said.

MediaTek counts major Chinese smartphone makers, including Oppo Mobile Telecommunications Corp (歐珀), Vivo Communication Technology Co (維沃) and Xiaomi Corp (小米), among its clients.

The company’s first 5G single chip would be produced using Taiwan Semiconductor Manufacturing Co’s (台積電) advanced 7-nanometer technology.

The chip is based on ARM Ltd’s Coretex A77 processor and Mali G77 graphics architecture.

MediaTek shares yesterday ended unchanged at NT$280.50 in Taipei trading, off a low of NT4275, while the TAIEX ended down 10.53 points, or 0.10 percent, at 10,301.78, on turnover of NT$93.38 billion.

Additional reporting by staff writer

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