China Mobile, MediaTek may set up mainland JV

Sep. 2, 2009 (China Knowledge) - China Mobile Ltd<0941><CHL>, the country's largest telecom operator, and Taiwan's MediaTek Inc may set up a joint venture in mainland China to develop 3G products, a Taiwan-based newspaper reported on Tuesday.

The JV will develop parts for the telecom carrier's home-grown TD-SCDMA wireless technology, the newspaper cited unnamed source as saying.

China Mobile plans to take a 70% stake in the new company, according to the report.

In late August, China Mobile signed agreement with MediaTek, the world's seventh-largest chip designer, to jointly develop 3G TD-SCDMA technology. The deal was signed during its Chairman Wang Jianzhou's nine-day visit to the island.

The country's largest telecom carrier has also signed cooperation agreements with HTC Corp and Foxconn Group.

MediaTek earlier predicted that its sales in the third quarter of this year will increase between 15% and 20% from the second quarter, China Knowledge reported earlier.