MediaTek has just become the world’s fourth largest fabless chip designer after Qualcomm, Broadcom and AMD. The company achieved this by buying MStar for the amazing sum of 3.8 billion dollars.
MStar is also a Taiwanese company just like MediaTek, and the move is said to strengthen MediaTek’s market position and its ability to secure lower prices for its suppliers.
A Nomura hired analyst believes that the new and improved MediaTek is now able to control 80 percent of the global TV chipset market.
This is a very strange move from MediaTek, as this is a company that used to invest heavily into its own product and science development.
Back in 2009, MediaTek has invested a record amount of money in R&D. The exact sum approaches 900 million dollars.