RISING COMPETITION:The chip designer expects to continue posting a profit next year, but growth may be affected by competition from Qualcomm and Spreadtrum
Date: Dec 29, 2015
By: Lisa Wang / Staff reporter
MediaTek Inc (聯發科) yesterday said it expects its mobile chip shipments to grow by a low double-digit-percentage at best next year, backed by rising demand for 4G chips in emerging markets such as India.
However, MediaTek, which mainly supplies chips to Chinese phone brands, including Huawei Technologies Co (華為), said that intensifying competition from Qualcomm Inc and Spreadtrum Communications Co (展訊通信) would undermine its profitability next year and drive its profit growth to the slowest in three years.
“As [price] competition will continue to be stiff in 2016, gross margins will be under even more pressure compared with this year,” MediaTek vice chairman and president Hsieh Ching-jiang (謝清江) told a media briefing. [FULL STORY]