May 5, 2006
It has been reported that Mediatek Inc. recently received a large order for mobile phone chips from the world's largest telecom provider, Vodafone. The deal paves the way for the Taiwanese company to make a splash in the European market and also offers a greater possibility of receiving orders from major mobile phone companies such as Nokia and Motorola.
Mediatek confirmed the reports of the orders on Apr. 26, but declined to name the partners, only saying that it had received orders from two European companies, which represented a possible breakthrough for the company.
Mediatek is Taiwan's largest IC fab – following a success in the DVD player chip market, the company moved on to the mobile phone chip market and has served as a cooperative partner with three of mainland China's three largest cell phone brands, Lenovo, TCL and Bodao.
Observers have speculated that a Vodafone deal would give Mediatek an opportunity to challenge Texas Instruments' dominance in the European mobile phone chip market.
A Mediatek spokesperson noted that building a client base from Europe, America and India would help the company receive orders from top global companies. According to reports, Mediatek is cooperating with Taiwan ODMs and has received a large number mobile phone chip orders a number of telecom companies in India as it establishes its foothold in the Indian market.
(Economic Daily News)
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