Wednesday, June 30, 2004
MediaTek Inc., the world's largest designer of chips for DVD players, bought a 19 percent stake in Ali Corp., worth of NT$555 million. According to an analyst, MediaTek will gain several seats on ALi's board, which will provide use some of ALi's IC design technology to promote new chipsets after facing tough competition from local and foreign firms.
MediaTek, the first company to offer all-in-one DVD player chip, but based on their first quarter sales revenues, the profits margins is not visible compared to last year. MediaTek saw its first-quarter net income rise 10 percent to NT$4.2 billion, or NT$6.58 a share, from NT$3.8 billion, or NT$6.16 a share, a year earlier. The analyst pointed out that the rivals also match MediaTek's all-in-one chipset that the market share of MediaTek did not expand but reduce.
Beside biggest local rival is VIA Technologies, MediaTek also competes with two US-based companies such as Zoran Corp. and ESS Technology Inc. in the DVD chip business. Yesterday, the local stock market saw ALi share price up by NT$1.10, or 7 percent, to NT$18 while MediaTek gained NT$1, or 0.4 percent, to NT$264.
By: DocMemory
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