MediaTek has stepped up its efforts to expand the company's IoT business. Although the unit will contribute less than 5% to 2016 revenues, the company expects revenues generated from the business to register robust growth over the next few years.

MediaTek has set IoT as its third largest segment after mobile devices and home entertainment products, such as digital TVs.

Within MediaTek's IoT business unit, the company has expanded its R&D team to more than 200 engineers, and has its newly-established MediaTek Labs incorporated into the unit. MediaTek has also put significant capital resources into its IoT business unit, the company indicated.

In addition to wearables, MediaTek's product lines for IoT will be expanded to also include chip solutions for smart home, location tracking and M2M applications, the company disclosed.