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June 28, 2017

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MediaTek forecast to be ranked 12th-largest IC supplier in 2014

TAIPEI -- MediaTek Inc., one of Taiwan's leading integrated circuit designers, is expected to benefit from a merger with MStar Semiconductor Inc. to become the 12th-largest IC supplier in the world in 2014, according to a research report released Wednesday.

In the report, market information advisory firm IC Insights said that after fully bringing MStar under its corporate umbrella, MediaTek's sales could expand to more than US$6 billion this year to push the company's global ranking up by four notches compared with a year earlier.

MediaTek completed a deal to merge with MStar Feb. 1 after China and South Korea, both of which had voiced anti-trust concerns, dropped their opposition to the merger.

According to IC Insights, MediaTek posted US$4.59 billion in sales in 2013, up 36 percent from 2012, making the Taiwanese firm the 16th- largest IC supplier in the world, up from 22nd place recorded in 2012.

IC Insights said MediaTek experienced strong demand for its chips, in particular from the booming low-end smartphone markets in China and other countries in the Asia-Pacific region, which boosted its sales in 2013.

Last year, IC Insights said, MediaTek's smartphone chip shipments topped 200 million units, almost double the 108 million units the company shipped in 2012.

Contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC) took the title of the world's third largest IC supplier in 2013 after generating US$19.85 billion in sales, up 17 percent from a year earlier. TSMC's 2013 global ranking remained unchanged from 2012.

United Microelectronics Corp. (UMC), another Taiwanese contract chip maker, ranked the 19th-biggest IC supplier in 2013 after posting US$3.96 billion in sales, a rise of 6 percent from a year earlier. UMC ranked the 20th-largest IC supplier in 2012.

IC Insights said that among the top 20 IC suppliers in the world last year, nine were headquartered in the United States, three in Japan, three in Taiwan, three in Europe and two in South Korea.

Intel Corp. remained the world's largest supplier, posting US$48.32 billion in sales, ahead of South Korea's Samsung Electronics Co., which recorded US$34.38 billion in revenue, according to IC Insights.

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