Shares of Taiwan-based IC design house MediaTek Inc. (2454) jumped 0.46 percent to close at NT$438 (US$14.6) Tuesday on reports that the company has received more 4G chip orders as its rival chipmaker Qualcomm was struggling with chip issues.
Last week, industry sources reported that Qualcomm was having some issues with the Snapdragon 810, specifically the RAM controller and heating issues, and that the new chipset could be delayed subsequently. Although the impact from the delay remains unknown, some local media including the Economic Daily News said that some of Qualcomm’s clients have shifted orders to MediaTek to ensure a smooth supply. The biggest beneficiaries of such moves will be Taiwanese IC design house MediaTek and contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC) (2330), with the latter receiving orders from the company.
MediaTek declined to comment on rumors.
The company’s new 4G LTE chips code-named MT6732 and MT6752 have entered into mass production since October. Products adopting MT6752 chips will start shipment before the Lunar New Year of 2015, according to the media.
Shares of MediaTek recently suffered a loss due to its report of a weak November sales last week. The company said its sales for November fell to a five-month low, a decline that market analysts attributed to the slow season effects. MediaTek posted NT$16.77 billion (US$539 million) in consolidated sales for November, down 22.36 percent from a month earlier, but up 30.82 percent on year.