Goodix Technology, an affiliate of MediaTek specializing in the design of touchscreen controller ICs, has its solutions incorporated in MediaTek's new smartphone reference design, according to industry sources.

Codenamed MT6589, the new MediaTek quad-core SoC chip is targeted at Android phones mainly sold in China with available reference designs being shipped for sampling to potential customers, the sources indicated.

Goodix started shipping its touchscreen controllers for MediaTek's handset solutions, including the single-core MT6575 and dual-core MT6577, in the first half of 2012, the sources pointed out. With monthly shipments already topping two million units, Goodix has gradually improved its competitiveness against FocalTech Systems, the sources said.

FocalTech is currently the largest provider of smartphone-use touchscreen controllers in China, and its leading position could be under threat from the MediaTek-backed company, the sources noted.

Goodix drew strategic investment from MediaTek in March 2011. Later in the year, MediaTek raised its holdings in the China-based affiliate to more than 30%.

In addition, also featured in the available reference designs for MediaTek's quad-core solution are touch panels developed and manufactured by China-based Memtech International, the sources revealed.