MediaTek to push into GPS module business in China

MediaTek is planning to expand its GPS business by cooperating with several Taiwan-based GPS makers including Transystem, Delta Electronics and Holux to provide handset platforms and GPS modules to China-based makers, according to sources at GPS makers.

Although many handset makers directly integrate GPS chips in their handsets, China makers do not have the technical experience, nor are they willing to throw development resources and testing equipment, towards GPS technology, therefore MediaTek decided to search for cooperation with Taiwan-based makers to provide the GPS modules to China makers, noted the sources.

MediaTek was originally planning to start pushing into the GPS market in China, but with the China maker's first wave of products not passing certification from China telecommunication vendors, it therefore delayed the shipment schedule. However, the company expects that the Beijing 2008 Olympic Games will boost handset demand in China leading to handset shipments possibly reaching 150 million units, once the products gain certification, which in turn will boost the revenues of the GPS module suppliers.

However, the sources also pointed out that MediaTek will eventually integrate GPS into its handset platforms, therefore the GPS module business is just a temporary solution.

source