Handset and LCD TV chip solutions to drive revenues for MediaTek

Although MediaTek’s revenues were down 25% sequentially in the first quarter, sales were still up 23% from the same period last year, and sources indicated the Taiwan-based IC design house should gain momentum over the next few quarters amid an aggressive push for both handset and LCD TV solutions. The company had accumulated revenues of NT$11.09 billion in the first quarter.

MediaTek shipped approximately 30 million handset chips in 2005 and that amount should at least double to 60 million chips, the sources said. Some observers are predicting that MediaTek's monthly shipments for the segment should exceed five million chips in May and June.

Nomura International projects that MediaTek will achieve on-year revenue growth of 20% in the second quarter, thanks to increased handset chip shipment and the development of its digital TV solutions. LCD TV chips will account for 5% of the IC design house's revenues this year, up from less than 1% last year, the sources added.

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