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New LTE chip signals a brighter future for MediaTek: brokerage
Central News Agency
2014-02-12 11:24 AM
Taipei, Feb. 12 (CNA) MediaTek Inc.'s new LTE (Long-Term Evolution) smartphone chip could help the Taiwanese chip designer lay the groundwork for tapping into China's 4G market and acquiring other customers in developed markets, Morgan Stanley said Tuesday. The brokerage gave its assessment after MediaTek unveiled the MT6595, the world's first 4G LTE octa-core smartphone chip for the mainstream market. MediaTek said the chip will be commercially available in the first half of 2014, with terminal devices expected in the second half of the year. Some analysts had been concerned that MediaTek could lose market share when China transitions to the 4G wireless broadband technology because of perceptions that its 4G chip development was proceeding too slowly, but the chip's unveiling seemed to ease the doubts. "In the second half of 2014 and beyond, when 4G really ramps in China, we believe MediaTek will be ready. Today's announcement on a slight pull-in is an encouraging sign," Bill Lu, a Morgan Stanley analyst in Hong Kong, wrote in a research note on Tuesday. MediaTek until now has focused on Chinese handset makers and consumers in emerging markets, but the Hsinchu-based company will be able to target international carriers and handset makers with its offering of LTE chips, Lu said. He gave the stock an "overweight" rating and a price target of NT$500 (US$16.5), based on smartphone growth potential in emerging markets and MediaTek's favorable product portfolio. MediaTek shares had risen 2.39 percent to NT$429 as of 9:46 a.m. Wednesday in Taipei. (By Jeffrey Wu)
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