How a Taiwanese firm became one of the world’s fastest-growing chipmakers
MOST technology firms fall into one of two brackets: those that sell individual components, such as Intel, a chip giant, and those that offer finished products, such as Apple of iPhone fame. MediaTek sits somewhere in between: it sells most of the innards of mobile phones in a single package, but not the phones themselves—a strategy that has made it one of the world’s fastest-growing chipmakers. On August 4th it said its second-quarter profits were 80% higher than a year before, at NT$9.16 billion ($277m).
Although no household name, MediaTek makes products used by most consumers in rich countries. The Taiwanese firm is a “fabless” chipmaker, meaning that it only designs its chips, while subcontracting production. It started life in 1997 making chips for CD-ROM drives, and eventually took to building the brains of all sorts of consumer devices. Today MediaTek is the leader in these markets, equipping more than 50% of DVD players, for instance. …