Me­di­aTek loses top IC de­signer earner ti­tle in Tai­wan

The China Post - - LOCAL -

Me­di­aTek Inc. ( ) lost its ti­tle as the most prof­itable in­te­grated cir­cuit de­signer in terms of earn­ings per share (EPS) in Tai­wan in the first half of this year in the wake of slow­ing global de­mand for smart­phone chips, ac­cord­ing to sta­tis­tics re­leased Satur­day.

Smart­phone chips serve as the largest rev­enue source for Me­di­aTek, ac­count­ing for more than 60 per­cent of the IC de­signer’s to­tal sales.

In the six-month pe­riod, Me­di­aTek posted NT$8.68 (US$0.27) in EPS, lag­ging be­hind NT$9.15 posted by Phison Elec­tron­ics Corp.(

), a con­troller IC de­signer, who took first place, the data in­di­cates.

In a sat­u­rated 3G mar­ket, global smart­phone needs have shown signs of shrink­ing, while the mo­men­tum of the world’s 4G mar­ket has failed to pick up, mar­ket an­a­lysts said.

Un­der such un­fa­vor­able cir­cum­stances, Me­di­aTek suf­fered a 40 per­cent year-on-year de­cline in net profit in the first half of this year in the wake of a de­cline in smart­phone chip ship­ments.

Es­ca­lat­ing price com­pe­ti­tion af­ter ag­gres­sive prod­uct price cuts by ri­val Qual­comm Inc. also eroded Me­di­aTek’s bot­tom line, the an­a­lysts said. In the sec­ond quar­ter of this year, Me­di­aTek’s gross mar­gin fell 1.4 per­cent­age points to 45.9 per­cent.

Me­di­aTek’s first-half EPS for this year was down sharply from NT$14.89 recorded over the same pe­riod of last year.

Due to the weaker-than-ex­pected global smart­phone mar­ket, Me­di­aTek has an­tic­i­pated that its sales for the whole of 2015 will fall 5-10 per­cent from 2014, while cut­ting its smart­phone chip ship­ment forecast to 400 mil­lion units from 450 mil­lion units for the year.

Phison, ben­e­fit­ing from a new high of its con­troller IC ship­ments, rose one notch to be­come the top earner among lo­cal IC de­sign­ers af­ter its EPS grew to NT$9.15 from NT$8.51 recorded a year ear­lier. Pa­rade Tech­nolo­gies Ltd. ( ), a touch IC de­signer, came in third, post­ing NT$7.05 in EPS for the first half of this year. While the EPS for the six-month pe­riod fell from NT$7.55 recorded a year ear­lier, Pa­rade re­tained its ti­tle as the third-most prof­itable IC de­signer in Tai­wan.

Si­l­ergy Corp. ( ), a power man­age­ment chip de­signer, ranked the fourth-most prof­itable earner, up from sev­enth place recorded a year ear­lier, af­ter the com­pany posted NT$6.67 in EPS for the six- month pe­riod.

ASPEED Tech­nol­ogy Inc. ( ) posted NT$5.42 in EPS for the first half of this year, mak­ing the com­pany the fifth-most prof­itable IC de­signer in Tai­wan, up one notch from a year ear­lier.

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