MediaTek Inc (聯發科), the nation’s biggest handset chip designer, said yesterday that it had signed a memorandum of understanding (MOU) with Chinese modem chip designer AST Wireless (傲世通) to cooperate on developing chips supporting China’s home-grown TD-SCDMA technology.
The announcement came amid recent speculation that US rival Qualcomm Inc planned to acquire AST Wireless to make faster headway in developing TD-SCDMA handset chips.
MediaTek said the strategic partnership with AST Wireless will help enlarge its TD-SCDMA product portfolio to match rising demand for various end-user terminal devices, and that the deal will enhance the firm’s 3G-and-beyond technological capability, a press release said.
“Continuous technological innovation in the TD-SCDMA industry is one of the major factors driving MediaTek to the overall leading position,” MediaTek said.
The deal also involves China’s biggest mobile operator, China Mobile Ltd (中國移動), which plans to expand China’s 3G market, the Hsinchu-based mobile telephone chipmaker said.
“The deal will enable MediaTek to develop TD-SCDMA chips for China Mobile, better catering to the needs of the telecom company, because of close links between China Mobile and AST Wireless,” said Kenneth Lee (李克揚), a semiconductor analyst with Fubon Securities Investment Services Co (富邦投顧).
New 3G and smartphone chips would create business opportunities that can sustain the company’s growth for several yeas to come, Lee said. Lee reiterated a “buy” rating on MediaTek with a raised target price of NT$700.
In the initial stage, the new handset chips could account for 10 percent of MediaTek’s plans to ship up to 400 million chips this year, Lee said.
AST Wireless is a high-tech startup based in Suzhou and a developer of wireless terminal chipset solutions, according to the company’s Web site. Currently, it is focusing on developing 3.5G HSDPA technology and it plans to move to 3.9G or 4G technology.
China Mobile had more than 5 million TD-SCDMA subscribers at the end of last year, the telecoms operator said.
“The Laguna-U chipset is the successor of the industry’s first HSDPA chipset [Laguna], which was commercially used at the Beijing Olympic Games and can support HSDPA downlink up to 2.8Mbps,” the statement said. “The Laguna-U is now in mass production to support the large-scale commercialization of HSPA in 2010.”
Shares of MediaTek jumped 1.92 percent to NT$584 yesterday, beating the TAIEX, which edged up 0.81 percent.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
RSS