Gains generated from the sale of a unit specializing in car electronics chips and Goodix' IPO listing on the Shanghai stock market will boost MediaTek's profitability in the second quarter of 2016, according to a recent Chinese-language Economic Daily News (EDN) report. MediaTek's EPS for the quarter is likely to reach NT$7 (US$0.22), the report quoted market watchers as saying.

MediaTek has issued a company filing with the Taiwan Stock Exhchange (TSE) saying it was not the source of the report.

AutoChips (Hefei), in which MediaTek holds a 86% stake, was previously Mediatek's automotive electronics division. MediaTek reportedly is seeking a buyer for the subsidiary in China potentially a local chipmaker or firm backed by China's national semiconductor industry investment fund, in exchange for cooperation, the report indicated.

In addition, touchscree controller and fingerprint sensor supplier Goodix, in which MediaTek has an around 24% stake, is expected to receive approval for listing on the Shanghai Stock Exchange sometime in the second quarter. The trading of Goodix' IPO will also allow MediaTek to recognize additional profits during the quarter, the report said.

By: DocMemory
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