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Mediatek shares rise on shipment outlook

Mediatek shares rise on shipment outlook

Mediatek Inc., Taiwan's biggest maker of mobile-phone chips, rose to the highest in more than two weeks in Taipei trading after a report said its shipments will increase 8 percent in the first quarter from the current period.
The stock gained 5.9 percent to close at NT$428, while the island's benchmark Taiex index climbed 2.4 percent. Sophia Liang, a Mediatek spokeswoman, said by telephone that the company hasn't provided a first-quarter forecast.
Texas Instruments Inc., the biggest maker of mobile-phone chips, and closest rival Qualcomm Inc. this month both raised forecasts on stronger-than-expected demand. Growth in China, the world's biggest market for wireless phones by users, may compensate for a slowdown in the U.S. economy.
"Mediatek will likely continue to benefit from strong handset demand from China, which is its biggest market," said Robyn Hsu, who helps manage US$369 million funds at Truswell Securities Investment Trust Co. in Taipei.
Mediatek may ship 65 million handset chips in the first quarter, the Commercial Times reported, without saying where it got the information. The increase will be driven by a decline in chip inventories at Mediatek's customers in China, the Taipei- based, Chinese-language newspaper said.
Qualcomm's profit, excluding costs such as stock-based compensation, will increase to between 52 cents and 53 cents a share in the three months ending December 30, the San Diego-based company said December 20. The chipmaker said last month that earnings would climb to as much as 52 cents, from 43 cents a year earlier.
Texas Instruments said on December 10 that fourth-quarter sales will increase to at least US$3.5 billion. That compares with a prediction of US$3.4 billion to US$3.68 billion made when the Dallas- based chipmaker delivered quarterly results on October 22.
China added a record 8.1 million subscribers in October for a total of 531.45 million, according to government data.


Updated : 2021-04-14 08:06 GMT+08:00