Consumer China

MediaTek - hit by knock-off crackdowns

  • Published 29 Jul 2010

Government crackdowns on knock-off handsets in China and other emerging markets have started hurting sales in recent months.

Background:MediaTek Inc (2454:TPE) started out making chips for computers and media storage, but chips for mobile handsets now make up around 70% of the company's total revenues. The company also makes chips for a range of other technologies including WiMAX (internet for mobiles), high-definition television (HDTV), DVD and Blu-ray products. MediaTek is known for its lower value chips which make them popular with Chinese low-end knock-off handsets, or shanzhai, as well as China's biggest domestic handset manufacturer Tianyu for its popular K-touch mobile phone brand.

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