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Talk of the Day -- MediaTek's new processor gets avid response

2013/10/21 23:00:56

MediaTek Inc.'s true octa-core processor has received enthusiastic response from China's handset makers, according to media reports.

Volume production for MediaTek's octa-core processor will get underway in November using Taiwan Semiconductor Manufacturing Co.'s 28nm process technology.

MediaTek, Taiwan's leading handset chip designer, said in a recent press statement that with its octa-core processor, users "can enjoy heavy web downloading, hardcore gaming, high-quality premium video viewing or other types of rigorous multitasking without experiencing lag times or excessive battery consumption."

Thanks to its successful promotional strategy, eight major Chinese handset makers, including ZTE, Huawei, Coolpad, Lenovo, OPPO, Gionee and vivo, have decided to develop new smartphone models that come with MediaTek's new octa-core processor, industry sources said.

With the addition of these Chinese firms, the total number of handset makers that are determined to develop MediaTek's octa-core processor should have reached 20, the sources said.

As production in the initial stage will remain limited, the new processor's contribution to MediaTek's revenues and profits will not become evident until the first quarter of 2014, market analysts said.

The following are excerpts from local media coverage of latest developments in the technology sector:

United Evening News:

Deutsche Securities' Taiwan branch said in a research report that MediaTek has further consolidated its leading status in China's low-cost smartphone market with its cautious yet proactive approach over the past year.

The report said MediaTek's shipments of baseband and AP chips for low-end smartphones will exceed 200 million sets this year and its tablet chip shipments will approach 20 million sets.

Its overall product shipments could get even more robust next year, the report said.

As a result, Deutsche Securities maintains is "buy" rating for MediaTek stock and further raise its target price for the company from NT$479 to NT$500.

MediaTek's Q3 sales posted a 17.2 percent quarterly growth in Q3 to NT$39 billion, much higher than the original forecast of 5 to 13 percent increase. (Oct. 21, 2013).

Economic Daily News:

The two DRAM makers in the Formosa Plastics Group -- Nanya Technology Corp. and Inotera Memories Inc. -- have staged a major turnaround this year thanks management streamlining and increases in DRAM prices.

Nanya's balance sheet turned from red to black in the first quarter of this eyar after having incurred heavy losses for a couple of years, Inotera also began to turn a rare profit of NT$3.47 billion in Q2.

Both companies earned even more in Q3, market sources said. Both companies are expected to unveil their Q3 financial records at investors conferences scheduled for Wednesday.

Nanya's Q3 earnings are estimated at NT$1.8 billion to NT$1.9 billion, while Inotera's Q3 earnings are expected to exceed NT$7.2 billion. (Oct. 21, 2013).

(By Sofia Wu)