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MediaTek not to supply handset chips to Nokia or Motorola next year

While Texas Instruments (TI), Infineon Technologies and Freescale Semiconductor are expected to be on the supplier lists of Nokia and Motorola for 2.5G handset chips next year, MediaTek will not make it to the list at least in the first half of 2009, according to industry sources.

The sources claimed MediaTek is not on the design-in or design-win supplier lists that Motorola or Nokia has set for the first half of 2009.

After TI announced to sell its baseband chip business, the market was speculating that MediaTek, with a 20% share of the baseband chip market worldwide, would have the opportunity to take over TI's two major customers Nokia and Motorola.

However, MediaTek has disclosed that it has not gained any orders from international vendors. Although TI is planning to sell its baseband chip business, it still maintains its relationships with Nokia and Motorola in the ASIC segment, and therefore the speculation on major shift of orders is presumptuous, MediaTek said.

MediaTek said it has no plan to adjust its fourth-quarter guidance of a 9-16% decline in revenues.

Infineon has been a supplier of 2.5G handset chips for Nokia since 2007 although the shipment volume has been small, while Freescale has had a long-term relationship with Motorola, the sources noted. Infineon's and Freescale's shipments to Nokia and Motorola beginning in the first quarter of 2009 are expected to drive these two handset chip suppliers' market share next year, indicated the sources.

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