MediaTek set to increase tablet chip sales in China

Staff writer, with CNA

Wed, Jul 24, 2013 - Page 14

Taiwan-based integrated circuit designer MediaTek Inc (聯發科) is expected to grab a greater than 30 percent share of China’s chip market for tablets next year, given the rising popularity of tablet computers there, Daiwa Securities said yesterday.

This year’s tablet PC shipments to China are forecast to show about a 100 percent annual increase to 120 million units, rising by a further 42 percent year-on-year to 170 million units next year, Daiwa Securities said in a research note.

It forecast that MediaTek’s share of the Chinese tablet market would increase from an estimated 18 percent this year to between 30 percent and 35 percent next year.


Dual-core tablet chips are set to become MediaTek’s major seller in China, accounting for 50 percent of total sales for this year, while quad-core chips are expected to account for 30 percent, Daiwa Securities said.

The brokerage said MediaTek is likely to ship 21.60 million tablet chips this year, higher than the company’s forecast of between 10 million and 15 million units.

In early May, the IC designer raised its tablet chip shipments forecast for this year from between 5 million and 10 million units, and is expected to raise it again.

Daiwa Securities said the firm’s tablet chip shipments for this year are likely to hit 60 million units.

MediaTek is scheduled to release its second-quarter results and give third-quarter sales guidance at an investor conference on Friday next week.


Earlier this month, MediaTek reported NT$33.28 billion (US$1.1 billion) in consolidated sales for the second quarter, up 38.8 percent from the first quarter and exceeding its forecast of between NT$30 billion and NT$31.6 billion.

The company’s significant sales growth largely reflected solid demand for smartphone chips in China, but its rising tablet chip shipments also helped drive growth, analysts said.

MediaTek is expected to post earnings per share of more than NT$4 for the second quarter, compared with NT$2.79 in the first quarter, they said.

MediaTek shares closed up 3.93 percent at NT$343.50 yesterday after Barclays Capital issued an “overweight” recommendation on the stock.