MediaTek expects to ship more than 300 million handset chips in 2009

MediaTek now expects its handset chip shipments to exceed 300 million chips in 2009, compared to its original estimate of 250 million units. The IC designer attributed its upward revision to continued strong demand from India, Southeast Asia, the Middle East, Africa and Russia.

MediaTek's handset clients in China have succeeded in expanding their export operations, which now account for 40-50% of their sales, according to MediaTek president Hsieh Ching-Jiang. The clients' export businesses are boosting MediaTek's chip shipments, and the IC designer expects its share of the global handset chip market will reach 20-25% in 2009, Hsieh said.

Handset chips account for 70-75% of MediaTek's total revenues, Hsieh added.

Hsieh also pointed out that the company's second-quarter handset chip shipments grew over 17.7% from the first, and he expects to see a 15-20% sequential growth in third-quarter revenues.

MediaTek has reported a net profit of NT$16.64 billion (US$509 million), net EPS of NT$15.15, and gross margin of 57.7% for first-half 2009.

MediaTek's EPS for the second quarter reached NT$8.58, compared to NT$6.56 in the previous quarter and NT$4.78 in second-quarter 2008. Its second-quarter margin was 59.1%, up three percentage points sequentially and hitting the company's quarterly record.