MediaTek secures orders for wearable device chips

Staff writer, with CNA

Fri, Nov 29, 2013 - Page 13

MediaTek Inc (聯發科), one of the nation’s leading integrated circuit designers, said yesterday that it has secured orders to supply chips for use in wearable devices.

MediaTek said it has become part of Hong Kong-based wearable designer Omate’s supply chain by shipping its dual-core MT6572 chip for Omate’s smartwatch model, the TrueSmart.

According to MediaTek, the TrueSmart can be used on 2G and 3G networks under China Unicom (中國聯通), one of China’s largest telecoms.

The Omate smartwatch also has health monitoring and global positioning system functions, a 5-megapixel camera and can access several social networks, such as WeChat, MediaTek said.

MediaTek said the company has long been interested in wearable device applications, as the technology used in its smartphone chips is similar to that used in wearable products such as smartwatches.

The IC designer declined to disclose the volume of the shipments to Omate.

MediaTek shares rose 1.52 percent to close at NT$435 on the Taiwan Stock Exchange, outperforming the benchmark TAIEX, which closed up 0.8 percent at 8,362.43 points, as buying emerged following the news about the Omate orders.

Market analysts said the firm’s success at entering the wearable device supply chain has created another revenue source for MediaTek’s smartphone chips, which accounted for 55 percent to 60 percent of the IC designer’s third-quarter consolidated sales of NT$39.01 billion, up 17.2 percent from the previous quarter and 32.4 percent from the previous year.

Last week, MediaTek unveiled the world’s first octa-core mobile processor, which is aimed at enabling premium gaming performance, advanced multitasking and enhanced Web browsing, helping the company woo the high-end smartphone and tablet markets.