MediaTek to launch true octa-core processor Nov. 20
By Kathryn Chiu , The China PostTAIPEI, Taiwan -- Taiwan's largest fabless semiconductor company MediaTek (聯發科) on Thursday confirmed that a new product launch for its true octa-core processor will be held in Shenzhen on Nov. 20.
October 25, 2013, 12:27 am TWN
In July, MediaTek released an official statement on its company website, calling itself the first adopter of an authentic octa-core processor in a mobile device because its processor allows for all eight of its cores to run simultaneously.
The company yesterday finally told local media that its true octa-core processor, dubbed MT6592, will be launched in Shenzhen on Nov. 20.
However, MediaTek told the United Evening News that it will either hold a joint product launch with handset makers or demonstrate the firm's solution using its own octa-core solutions.
Earlier on, local media reported that MediaTek will perhaps demonstrate its true octa-core processor solutions for major handset customers including TCL, Huawei and Gionee.
It was rumored that volume production for MediaTek's octa-core processor will get underway in November using Taiwan Semiconductor Manufacturing Co.'s (TMSC,台積電) 28nm process technology.
With the addition of the Chinese firms, the total number of handset makers that are determined to develop MediaTek's octa-core processor seems to have reached 20, the Central News Agency reported citing industrial sources.
Eight major Chinese handset makers, including ZTE, Huawei, Coolpad, Lenovo, OPPO, Gionee and vivo, have decided to develop new smartphone models equipped with MediaTek's new octa-core processor, industry sources said.
Octa-core Chips Won't Make Contributions until 2014
However, as production in the initial stage will remain limited, the new processor's contribution to MediaTek's revenues and profits will not become evident until the first quarter of 2014, market analysts said.
With increasing shipments of high-end chips, MediaTek's gross margin is likely to climb to 45.1 percent in the fourth quarter and its earnings per share (EPS) for 2013 could reach NT$19.96, compared with NT$12.8 in 2012, Daiwa Securities said.
With MediaTek scheduled to start shipments of its more advanced octa-core smartphone chips in November, its gross margin is expected to grow accordingly, pushing up its EPS to NT$25.46 for 2014, the brokerage forecast.
Octa-core chips could account for 10 percent of MediaTek's total sales in 2014, according to Daiwa Securities. Daiwa Securities maintained its “buy” recommendation on MediaTek shares but raised its target price on the stock to NT$480 from NT$430.
Deutsche Securities' Taiwan branch said in a research report that MediaTek has further consolidated its leading status in China's low-cost smartphone market with its cautious yet proactive approach over the past year.
The report said MediaTek's shipments of baseband and application processor (AP) chips for low-end smartphones will exceed 200 million sets this year and its tablet chip shipments will approach 20 million sets.
Its overall product shipments could get even more robust next year, the report said.
As a result, Deutsche Securities maintains is “buy” rating for MediaTek stock and further raised its target price for the company from NT$479 to NT$500.
MediaTek's third-quarter sales posted a 17.2-percent quarterly growth in the third quarter to NT$39 billion, much higher than the original forecast of a 5- to 13-percent increase.