MediaTek buys into digital camera IC design
MediaTek buys into digital camera IC design
EMSNow (press release), UK
Mar 26, 2007
Director board of MediaTek Inc., Taiwan’s most profitable fabless house, recently passed a motion to acquire a 69% stake in U.S. digital-camera chip vendor NuCORE Technology Inc. through stock swap.
Taiwanese industry watchers expected the acquisition to make MediaTek a rising threat to existing digital-camera chip designers including Sunplus Technology Co., Ltd. of Taiwan and Zoran Corp. of the United States.
MediaTek will take over NuCORE’s digital-camera IC customers and its intellectual properties for the chips as soon as the US$37 million stock exchange is completed on July 20 this year. Industry watchers forecast the acquisition to allow MediaTek to diversify into the digital-camera IC sector and will likely contribute 5% of MediaTek’s annual revenue.
Digital-camera IC will go along with media-storage IC, DVD-player IC, cellphone IC, and digital-TV IC as MediaTek’s five major revenue earners. The company began business with media-storage IC for personal computers and has become the world’s No.1 supplier of the chips. Also, it has emerged as a heavyweight supplier of middle- and low-end cellphone chips in less than five years after diversifying into the segment. The company is pursuing the goal of becoming the world’s NO.1 supplier of digital-TV chips.
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