Mediatek clinches Sharp GSM order, Will supply EDGE baseband chips

Taiwan-based Mediatek has inked a deal with Sharp for the manufacture of baseband chipsets used in Chinese EDGE based phones. Sharp reportedly chose Mediatek's EDGE-compatible design over Qualcomm International's 3.5G chipset for the SH6010C, which features a thin exterior and high-definition screen. The contract could help the company raise its profile in the US market by linking to mobile phone supply chains utilised by Samsung and Motorola. Indeed, Sharp mobile phones equipped with Mediatek's chipsets have already obtained approval from the Federal Communications Commission (FCC). As IT Examiner previously reported, BNP Paribas has forecasted high expectations for Mediatek's low-cost phones, which are set to hit the market in early 2009. The company shipped 84 million units during the third quarter of 2008, compared to 51 million units in the previous quarter. Mediatek's revenue is projected to be (TWD) 94.15 million this year ($2.86 million), TWD 111.75 million in 2009 ($3.4 million) and TWD 130.75 million ($3,984,580 million) in 2010. It should also be noted that China's Ministry of Industry and Information Technology recently issued the country's first 3G telecom licences. Dozens of Taiwanese telecom carriers and equipment suppliers have queued to form partnerships with mainland companies in a desperate rush to participate in the lucrative market. In addition, Taiwan's Ministry of Economic Affairs has invited numerous Chinese companies to visit the island for talks, including China Mobile, China Telecom, China Unicom, Datang Telecom Technology, ZTE and Huawei Technologies. Official Chinese statistics indicate that telecom revenue reached a staggering 2.04 trillion yuan (US$304 billion) during the first 11 months of 2008, currently accounting for up to seven per cent of the nation's gross domestic product (GDP).The launch of China's new 3G service could help bolster the country's slowing mobile phone sales. According to ITIS, Chinese mobile phone shipments reached a volume of 175.2 million units in the third quarter of 2008, representing 6.2 per cent sequential growth and 4.3 per cent year-on-year growth. The industry's rate of expansion peaked in 2006 and has now slowed to mid-single digits.