Global IC sec­tor en­ters con­sol­i­da­tion era, says Me­di­atek Chair­man Tsai

The China Post - - TAIWAN BUSINESS -

Tai­wan-based in­te­grated cir­cuit designer Me­di­aTek Inc. ( ) Chair­man Tsai Ming-kai ( ) said Fri­day that the global semi­con­duc­tor in­dus­try has en­tered an era of con­sol­i­da­tion since the busi­ness has reached ma­tu­rity.

On the side­lines of Me­di­aTek’s an­nual gen­eral meet­ing, Tsai sug­gested that large IC firms in Tai­wan should gear up to seek op­por­tu­ni­ties for ac­qui­si­tions to ex­pand and se­cure needed tech­nol­ogy, while smaller sup­pli­ers could be brought un­der the cor­po­rate um­brella of larger ri­vals in the fu­ture.

Tsai made the com­ments af­ter a re­cent se­ries of prom­i­nent merger and ac­qui­si­tion deals in the global semi­con­duc­tor sec­tor. Among the deals, U.S. IC gi­ant In­tel Corp. an­nounced last week that it has agreed to ac­quire Al­tera, a pro­gram­mable logic semi­con­duc­tor sup­plier, for US$16.7 bil­lion.

The Me­di­aTek ex­ec­u­tive said that through busi­ness buy-ins, IC firms could be able to set a goal for longterm devel­op­ment to take on esca- lat­ing com­pe­ti­tion in the mar­ket. He said that even for a firm to be ac­quired, a buy­out deal could be good for its fu­ture devel­op­ment.

The gov­ern­ment, Tsai said, should en­cour­age lo­cal IC man­u­fac­tur­ers to ac­quire for­eign coun­ter­parts and pro­vide nec­es­sary as­sis­tance to fa­cil­i­tate the ac­qui­si­tions, which would help the lo­cal semi­con­duc­tor busi­ness re­cruit for­eign tal­ent and raise its com­pet­i­tive edge.

Tsai said that Tai­wan’s high tech sec­tor should not fear com­pe­ti­tion from China, which has laid down a plan to cul­ti­vate its own sup­ply chain in the high-tech sec­tor, in­clud­ing the semi­con­duc­tor in­dus­try, in a bid to re­duce de­pen­dence on for­eign sup­pli­ers.

He said there is room for Tai­wan’s IC firms and their Chi­nese coun­ter­parts to co­op­er­ate for a larger share of the world mar­ket, but he added that the lo­cal in­dus­try should im­prove it­self to take on more com­pe­ti­tion.

For Me­di­aTek, Tsai said, the com­pany is determined to make more ef­forts to de­velop ad­vanced tech­nol­ogy and roll out more high-end prod­ucts.

In Fri­day’s meet­ing, Me­di­aTek share­hold­ers ap­proved the com­pany’s pro­posal to is­sue NT$22 (US$0.71) in cash div­i­dends per share for 2014, when the IC designer posted NT$30.04 in earn­ings per share, com­pared with NT$20.51 recorded a year ear­lier.

The cash div­i­dend pay­out will be the high­est level in five years for Me­di­aTek, as it ben­e­fited from strong global de­mand for smart­phone chips and a merger with MS­tar Semi­con­duc­tor Inc. ( ).

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.