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Eric Lin, DIGITIMES Research, Taipei [Friday 17 August 2012]
Combined revenues of handset related solutions generated by Taiwan-based IC design houses grew 30% sequentially to NT$13.7 billion (US$456.36 million) in the second quarter of 2012, according to Digitimes Research. In terms of applications, sales of 2G handset chips totaled NT$6.66 billion in the second quarter, inching up 1% from the previous quarter, while those of 3G solutions, mainly from MediaTek, reached NT$7.03 billion, increasing 79.2% on quarter. Although VIA Telecom also boasts production lines for 3G solutions and application CPUs, its sales account for only a small portion of Taiwan's overall IC design industry. MediaTek's launch of a 3G solution, the MT6575, contributed significantly to the sequential growth in the second quarter. Meanwhile, demand for the dual-core 3G solution, the MT6577, released in late June, has been strong. Although shipments of 2G chips from MediaTek and MStar Semiconductor in the second quarter were maintained at first-quarter levels, the 2G solutions face increasing challenges for further market expansion, since the market has shifted focus to smartphones. The merger between MediaTek and MStar will bring competitive advantages in terms of market and technology developments that will enable the merged company to compete neck and neck with Qualcomm and other international players.
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