MediaTek enhances ASIC and IP design capability

Cage Chao, Taipei; Jessie Shen, DIGITIMES Asia 0

MediaTek continues to enhance its ASIC and IP design capability through several acquisitions announced recently, while recruiting talent from the IP and IC design industry sectors, according to industry observers.

MediaTek through subsidiaries is looking to acquire Intel's Enpirion branded power management solutions and networking IC company IC Plus, as well as an about 20% stake in Ethernet controller chip specialist Asix Electronics, continuing to expand the group's business scale and sharpen their position in high-growth market opportunities, the observers said.

MediaTek is also beefing up its ASIC division through hiring more talent from related industry sectors, the sources noted. The unit is building up its IP portfolios for a wide range of device applications ranging from server, high-speed transmission chips to AI and 5G related products, the sources continued.

For MediaTek, growing its ASIC business will help the mobile SoC specialist pursue mid- and long-term growth, the sources said. Through its ASIC business, MediaTek will also be able to build relationships with international brand vendors, the sources indicated. MediaTek used to rely on handset application processors and the China market for growth.

MediaTek is scheduled to hold its earnings call conference on January 27 to discuss its performance in the fourth quarter of 2020, and provide a business outlook.