MediaTek and MStar Semiconductor have seen their combined share in China's TV chip market drop to below 70% recently as more TV brands in China have chosen to use TV chips from Realtek Semiconductor and Novatek Microelectronics to avoid the risk of relying on a single supplier, according to industry sources.

　　The planned merger between MediaTek and MStar, which is still subject approval from China's antitrust agency, have pushed TV brands in China as well as ODMs in Taiwan to seek alternative suppliers since the second half of 2012, the sources noted.

　　Novatek and Realtek began volume shipments of TV chips to clients in China in early 2013, and since then the two vendors have seen their share in the sub-40-inch TV chip segment rising, revealed the sources.

　　However, MediaTek appears to have not deliberately blocked efforts of some of its TV chip clients to look for a second supplier given the comparative advantages it has in the TV chip sectors in terms of features, system architecture and product differentiation, the sources commented.