Ya Hsin breaks into low-price handset markets with MediaTek chips
Aug 08, 2005
Handset supplier Ya Hsin Industrial Co., Ltd. has successfully forced into low-priced handset markets in mainland China, South Korea and Japan thanks to less-expensive chips from MediaTek Corp.
In first half this year alone, Ya Hsin shipped approximately 750,000 handsets, seven times the amount it delivered during the same period of last year. The company has projected to ship one million handsets in the second half of the year.
Industry watchers point out that MediaTek's presence in handset-chip market has pushed big players like Infineon Technologies and Philips to pare down the prices of their chips to US$15 to US$20 apiece from US$30 to US$40.
Ya Hsin's executives point out that MediaTek offers highly integrated and high value added solutions, which can help cellphone suppliers introduce middle-range and high-end products at fairly low costs.
Competitive handsets helped Ya Hsin's revenue surge to NT$3.08 billion (US$99 million) last month alone from NT$2.6 billion (US$85 million) it reported a month earlier. Its revenue amounted to NT$15.7 billion (US$506 million) throughout the first seven months of this year, a 26% gain from the same period of last year. In first half this year, the company reported pre-tax earnings of NT$1.8 billion (US$59 million), or NT$2.11 per share.
Sometime this quarter, the company plans to roll out smart phones equipped with MP3 and MP4 functions as well a one-giga memory, allowing users to recording video and audio files with the phones.
MediaTek has signed up several new customers for its handset chips. The customers include Asustek Computer, Compal Communications in addition to Ya Hsin. It is convincing BenQ to use its chips.
Ya Hsin entered handset sector three years ago from printed circuit board (PCB) production.