MediaTek Inc (聯發科), which supplies handset chips to Chinese brands including Xiaomi Corp (小米), expects emerging markets to continue to drive chip demand this year, backed by nascent replacement demand for 4G-enabled phones, chairman Tsai Ming-kai (蔡明介) said yesterday.
Demand from developing countries could lend support to mobile phone chip growth this year amid a flagging global economy, Tsai said.
Consumers in “emerging markets have just begun adopting 4G phones, which could be a driving force for mobile phone chips,” Tsai told reporters on the sidelines of the founding of the AaPaTo Honor Society, sponsored by the company to foster young technology talent.
However, a stronger US dollar could curtail mobile phone demand in emerging nations, especially those reliant on exports of crude oil — whose prices have plunged — to grow their economies, Tsai said.
MediaTek aims to expand its 4G handset chip’s market this year, after capturing 40 percent of the Chinese market and tapping into emerging markets, such as India, last year.
Global shipments of mobile phone chips are expected to rise 10 percent this year, with growth primarily coming from emerging markets, such as India, Southeast Asia, eastern Europe and Latin America, MediaTek co-chief operating officer Jeffrey Ju (朱尚祖) told reporters last month.
“We are seeking growth opportunities in this uptrend,” Ju said at the time.
Commenting on future growth opportunities and potential solutions to a shortage of talent, Tsai said the government should be “open-minded” about liberalizing the local market and create a “business-friendly” environment.
“Taiwan should open up to global markets, including China,” Tsai said. “Taiwan is strong in ICT [information, communication and technology], but Taiwan has to open up to broaden its ICT base [market].”
The government recently took a step backward about its plan to lift the ban, amid increasing opposition from legislators ahead of the legislative elections earlier this month.
Current regulations prohibit Taiwanese chip designers from selling shares to Chinese investors. China’s Tsinghua Unigroup Inc (清華紫光) has publicly expressed its strong interest in investing or in merging MediaTek with its chip subsidiary.
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