MediaTek has signed a contract with the city government of Hefei, China under which the Taiwan IC design house will invest up to CNY500 million (US$82.1 million) to set up a R&D-production center in Hefei for the development of in-car chipset solutions, according to industry sources.

　　Since a number of new functions, including GPS, Bluetooth, touch-control and video recording have been incorporated into in-car entertainment systems recently, the new investment project meets MediaTek's deployments in wireless connectivity technology and TV chips, indicated the sources.

　　In Taiwan, MediaTek has already established an R&D team with a workforce of over 100 to engage in the development of chipset solutions for in-car entertainment systems, revealed the sources.

　　Given that MediaTek has come all the way from the optical storage, DVD player to Blu-ray players and to TV, smartphone and tablet chipset segments, it comes as no surprise that MediaTek will step into the in-car chipset solution market, commented the sources.