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MediaTek aims to cut Qualcomm's lead in China's 4G market

Posted: 10 Nov 2014 ?? ?Print Version ?Bookmark and Share

Keywords:4G? 3G? octa-core processor? SoCs?

MediaTek is moving quickly in China's 4G market as competition builds with Qualcomm and Intel. Intel in September announced an agreement to take a 20 per cent stake worth $1.5 billion in China's Tsinghua Unigroup Ltd, the owner of fabless companiesSpreadtrum Communications and RDA.

Qualcomm has a 68 per cent share of the global base band chip business that was worth $5.2 billion in the second quarter of this year, according to Strategy Analytics.

China's market for mobile phone processors is on track to reach 120 million units by the end of this year.

Credit Suisse analyst Randy Abrams estimates that Qualcomm has about half of that market, followed by MediaTek with about a quarter. Spreadtrum accounts for 5 per cent, trailed by other companies such as Marvell Technology and Intel.

"From our perspective, this market is pretty crowded," MediaTek CFO Ku said. "Without that deal (the Intel-Spreadtrum tieup) it's been pretty crowded already."

On the recent incentives announced by the Chinese government to stimulate the domestic semiconductor industry, Ku said that MediaTek will "definitely need to work with vendors in China."

The company currently sources most of its chips from Taiwan Semiconductor Manufacturing Corp. (TSMC), which is also a key supplier to Qualcomm.

- Alan Patterson
??EE Times U.S.

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