MediaTek will take on rival MStar Semiconductor in the 2.5G handset chipset segment with single-chip solutions built using 40nm process technology soon, according to industry sources.
MediaTek aims to take back the service privilege in the 2.5G chipset sector with advanced manufacturing processes after MStar managed to boost its share in the segment in the China market from the original 5-10% to almost 30% in the second half of 2010, the sources noted.
MediaTek's next-generation 40nm parts will integrate baseband, RF, Bluetooth, power amplifier and power management ICs into an all-in-one package, said the sources. In comparison, MStar's 40nm chips, which are still in development, will come with only baseband and RF chips.
Having cut its chip prices drastically in the past few months to stop MStar from further denting its share in the 2.5G segment, MediaTek's strategy to launch parts made with advanced technology will also force MStar to channel its newly earned profits into a technology race, the sources asserted.