The landscape of Taiwan's IC design industry is set to undergo significant changes in 2016 as MediaTek has disclosed plans to acquire up to 100% stake in analog IC vendor Richtek Technology, and its subsidiary MStar Semiconductor will also take over display driver IC maker ILI Technology (Ilitek). Both acquisition plans are to be completed in the first half of 2016.

Combined with revenues from MStar, Ilitek and Rickteh, it is highly possible for the MediaTek Group to scoop up an amount of sales that will account for over 50% of total revenues of Taiwan's entire IC design industry in 2016 and beyond.

The upsurge of MediaTek's strength comes as no surprise to the industry, given that Taiwan Semiconductor Manufacturing Industry currently account for nearly 50% of the global wafer foundry market, and Advanced Semiconductor Engineering (ASE) accounts for 40% of Taiwan's IC backend service market.

It is quite common to see a leading company stand out and dominate the market in a mature industry. Thus, MediaTek is able to continue to implement its acquisition policy if it wants.

While MediaTek will continue to focus on mobile device and IoT solutions, the group will have MStar specializes in display controller chips, Ricktek for analog ICs, Ilitek for LCD driver ICs, Alpha Image Technology for UAV chips, Andes Technology for MCUs, Goodix for touchscreen controller ICs, and mCube for MEMS chips.

It is for sure that the ever-expanding MediaTek Group will work to help enlarge the end-device chipset market, but it will also mount increasing competition pressure on related local IC vendors including Novatek Microelectronics, Himax Technologies, Realtek Semiconductor, FocalTech Systems, Raydium Semiconductor, Elan Microelectronics, Sitronix Technology and Silicon Motion Technology.

Perhaps some IC vendors will receive more windfall orders from the expanding chipset market, but more will be forced to join the MediaTek Group, or be phased out from the IC design market.

By: DocMemory
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