Editorial Summary

Taiwan based handset chip designer MediaTek (MTK) has finished initial integration of US company ADI's handset chip department and has established a special department for TD-SCDMA chip solutions development, reports Nanfang Daily quoting an unnamed insider. MTK will be able to start large-scale supply of TD-SCDMA handset chips soon, said the insider. TD-SCDMA Alliance secretary Yang Ye confirmed that MTK is strengthening its TD-SCDMA chip support resources. MTK acquired ADI's handset chip department for $350 million in September 2007. MTK accounted for 50% of the chips in handsets that participated in TD-SCDMA terminal bid in February, said the report. Lenovo Mobile is working with MTK on TD-SCDMA chips, said the report. Chinese home electronics manufacturer Hisense's (600060.SH) TD-SCDMA business general manager Chi Zhenyu said that there are now over 30 TD-SCDMA handset models available and that there will be 100 models by the end of 2008 if the current growth rate continues.