U.S.-based telecom operator Sprint has adopted chips supplied by Taiwanese IC designer MediaTek Inc. (???) in a new smartphone for the Sprint network, a move analysts said can help the company gain a foothold in the North American market.
The Taiwanese IC designer said the first MediaTek-enabled smartphone for Sprint was launched Monday, breaking new ground for MediaTek in the U.S. It was the first time MediaTek had sold one of its premium chipsets to a major U.S. carrier network.
Sprint unveiled the smartphone model -- the LG X power� -- equipped with the MediaTek Helio P10 chipset "for its high performance, power efficiency and compact size to allow for a slim, stylish device design," the IC designer said in a statement.
The Helio P10 offers high-performance 4G LTE octa-core processors, the IC designer said.
"Mediatech spent significant time and effort to optimize its LTE carrier aggregation feature for Sprint's LTE+ network to deliver super-fast data speeds, increased capacity and markedly improved data service for its customers," the company said.
Following the news of the Sprint tie-up, shares of MediaTek rose 1.24 percent to close at NT$245.50 (US$7.83) in Taiwan on Tuesday. The broader market closed 0.10 percent higher.
Analysts said MediaTek shares outperformed the market on hopes that the orders placed by Sprint will continue to help the company secure additional revenue sources in developed markets in addition to sales generated in emerging markets, in particular China.
"Collaborating with Sprint and LG to enable a WorldMode smartphone based on our MediaTek helio series chipset is an important milestone for MediaTek," Mohit Bhushan, MediaTek vice president and general manager of U.S. Business Development, said in the statement.
Bhushan said MediaTek will continue to invest in high-end chip development to meet demand from Sprint, hoping that the U.S. telecom services provider will adopt more of the Taiwanese IC designer's chips in 2017 and beyond.
In August, MediaTek posted NT$25.87 billion in consolidated sales, a monthly high for the IC designer. The figure was up 4.2 percent from July and up 36 percent from a year earlier.
MediaTek is expected to continue to smash its monthly sales record in September because of rising demand during the current peak season.
Source: Focus Taiwan News Channel