MediaTek is reportedly negotiating with United Microelectronics Corporation (UMC) as well as backend service providers including Advanced Semiconductor Engineering (ASE) and Siliconware Precision Industries (SPIL) for new prices in 2011, according to industry sources.
MediaTek is asking UMC to offer a discount ranging from 6-10%, while soliciting quotes from STATS ChipPAC and China-based Nantong Huada Microelectronics for backend packaging and testing services in addition to current suppliers including ASE, SPIL, Sigurd Microelectronics and King Yuan Electronics (KYEC), the sources indicated.
In other words, ASE, SPIL, Sigurd and KYEC are likely to be forced to lower their quotes in order to win orders from MediaTek in 2011, the sources added.
The price negotiations will be instrumental to set the price for MediaTek's forthcoming low-cost chipset solution, the MT6253 EL, which will be launched in March 2011, the sources said.