MediaTek Inc (聯發科) plans to mass-produce its first 5G single-chip product in March next year, making the chipmaker one of the world’s leading suppliers of 5G chips.
The company’s new chip, which was unveiled at Computex Taipei late last month, would be the world’s first 5G system-on-chip (SoC) to support sub-6 gigahertz bandwidth, meaning that MediaTek would have a good chance of overtaking Qualcomm Inc, which it lagged behind during the 4G era.
“We plan to test the 5G single chip in the fourth quarter, before starting mass production in March next year,” MediaTek chief executive officer Rick Tsai (蔡力行) told an annual shareholders’ meeting in Hsinchu on Friday.
“We are confident that our 5G single chip is very competitive. We are among the leading group [of 5G technology developers],” Tsai said.
MediaTek said it plans to produce its 5G chips using Taiwan Semiconductor Manufacturing Co’s (台積電) advanced 7 nanometer technology.
The new chips would fall under a new category, independent from its 4G P and X-series branding, the company said.
Tsai also warned about hardships ahead.
“For the whole semiconductor industry, this year will be a tough year, with the memory sector suffering a deep decline,” he said.
MediaTek is maintaining its operations as normal and its second-quarter outlook has not changed, Tsai said.
“This year is a volatile period. The company will focus on improving its fundamentals,” he said.
MediaTek’s long-term technology development investments should bear fruit this year, Tsai said.
New technologies — including 5G, Wi-Fi 6, application-specific IC (ASIC) and automotive electronics — would begin contributing to revenue from this year, he said.
MediaTek expects 5G, ASIC and Artificial Intelligence of Things to contribute to more than 10 percent of the company’s total revenue this year.
MediaTek said it would allocate 24 percent of its revenue to research and development (R&D), adding that it has invested NT$220 billion (US$6.98 billion) on R&D in the past four years.
The company would continue to focus on global market deployment, enhancing its product portfolios and optimizing its profit structure, Tsai said.
Shareholders on Friday approved the company’s distribution of a cash dividend of NT$9 per share, including NT$3 from the company’s capital surplus.
MediaTek reported that net profit dropped about 14 percent annually to NT$20.78 billion last year, or earnings per share of NT$13.26. However, gross margin climbed to 38.5 percent last year from 35.6 percent in 2017.
The cash dividend represented a 2.93 percent dividend yield based on the stock’s closing price of NT$307 on Friday.
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