Handset chip designer MediaTek Inc (聯發科) posted its weakest monthly revenue in 22 months last month amid intensifying pricing competition.
Revenue inched lower by 0.19 percent to NT$7.36 billion (US$249 million) last month from October’s NT$7.38 billion, its lowest level since January last year as rivals, primarily China’s Spreadtrum Communications Inc (展訊), nibbled away at MediaTek’s market share.
The firm said in a statement that revenue fell 27.2 percent last month from NT$10.11 billion a year ago.
MediaTek is expected to see a rebound of 15 percent in revenues next month to NT$8.5 billion, which would help keep it on track to hit its fourth-quarter revenue outlook, Credit Suisse analyst Randy Abrams said in a report released yesterday.
MediaTek yesterday said it would stick to its fourth-quarter revenue forecast of a fall of between 15 and 20 percent to between NT$22.5 billion and NT$24 billion this quarter from last quarter.
This quarter’s revenue, however, could fall short of Credit Suisse’s expectation of a 15 percent decline as a slower start implied that the chipmaker’s revenue was tracking toward the midpoint of the decline between 15 percent and 20 percent forecast by the company.
MediaTek was likely to see blended prices drop below US$5 per unit into the current quarter, down from its stable level around US$8 through 2008 and early last year, Abrams forecast.
Separately, MediaTek chairman Tsai Ming-kai (蔡明介) told reporters that smartphones would deliver growth opportunity for the firm that is working to break into the market.
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
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
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
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS