MediaTek: Acquisition of Morningstar will reduce competitive costs

C114 June 28 Morning News (Li Ming) on the recent announcement of the acquisition of rival Morningstar Semiconductor by MediaTek, MediaTek China general manager Lu told C114 that the acquisition will further reduce the cost of competition, improve operational efficiency, expand sales scale and enhance research and development capacity, The advantages of MediaTek in the field of cell phone chip and the advantage of Morningstar in the field of TV chip are combined to better deal with the challenges of market competition and the integration of the three networks. Recently, MediaTek announced the acquisition of rival Morningstar Semiconductor, the total amount is expected to spend 115 billion NT dollars, about 24.426 billion yuan. The acquisition of Morningstar, MediaTek will reach 4.189 billion U.S. dollars, is expected to surpass Nvidia (NVIDIA) to become the world's fourth largest IC design manufacturers, after Qualcomm, Bo Tong, amd three. The success of the merger will be the biggest merger deal in the Asian chip industry in the past 10 years. MediaTek and Morningstar are Taiwan's two biggest chip design rivals, MediaTek specializes in cell phone chips, and Morningstar is the global LCD TV chip faucet. According to people familiar with the matter, the success of the acquisition, Morningstar's mobile phone business will be merged into MediaTek, if the smooth, the two TV business will also be integrated; In addition, the group will be formed to coordinate the work of both sides to avoid further price war. It is understood that Morningstar was founded in 2002, last year revenue of NT $36 billion (about 1.2 billion U.S. dollars), its 65% revenue mainly from the sale of TV chip business, and in the mobile phone chip field is known as the most powerful competitor of the Shanzhai market; MediaTek was founded in 1997, Revenue reached NT $87 billion last year, and the company's revenues fell for the second consecutive year. Tsai, the chairman of MediaTek, said that with the increasing pressure of industry competition, integration is a big trend, especially smart mobile phones, television, smart television and other fields. End products gradually intelligent, IC industry will face more challenges, the two sides will be able to play their respective director, integration of resources, to maximize the benefits.