STRATEGIC SHIFT: The chip designer said that its focus on mid to high-performance chips is paying off, with its gross margin trending up after sliding for 13 quarters
Taipei Times
Date: Dec 28, 2017
By: Lisa Wang / Staff reporter
Handset chip designer MediaTek Inc (聯發科) yesterday expressed confidence that it would be able to recover some lost turf next year as its recovery plan begins to bear fruit earlier than expected, as evidenced by a rebounding gross margin.
MediaTek attributed the improvement primarily to a repositioning of its mobile processor strategy to focus on the mid and high-performance Helio P series, which target smartphones with a price tag of 1,500 yuan to 3,000 yuan (US$230 to US$460), while halting marketing for the Helio X series, which is used in premium phones.
The strategic shift was made about seven months ago, when semiconductor veteran Rick Tsai (蔡力行) was appointed co-CEO to help steer the company through a rough time.
The company had seen its gross margin and market share slide due to intensifying competition, mainly from Qualcomm Inc. [FULL STORY]