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MediaTek turns to the Internet of Things to boost profits

The rapid development of IoT (Internet of Things) has become the core of strategy for many industrial manufacturers. Speaking at a pre-Computex 2016 press conference, JC Hsu, corporate vice president and general manager of IoT Business Development at MediaTek said that MediaTek will aim their loT efforts on Smart Home appliances, wearables, GPS and machine-to- machine (M2M) communications.

MediaTek Inc. is a pioneering fabless semiconductor company headquartered in Hsinchu, Taiwan that designs products including, but not limited to, smartphones, IoT and 3C devices, etc.

MediaTek Inc.

According to JC Hsu (徐敬全), IoT only accounted for 5 percent of MediaTek’s total revenue and it will increase its revenue contribution to about 10 percent in the next three to five years. However, the compound annual growth continues to improve with gross margins of 50 percent. MediaTek is adding a hundred people to its workforce to strengthen the development of loT products.

MediaTek designs powerful chips for health-related wearables, from last year’s heart rate monitoring smartphone camera and safety watch to this year’s wearable trackers, have benefited families and medical care systems. The tracker enables any family the ability to detect movements that could resemble an accident involving their elderly family members.

MediaTek announced MT 2523 in January of 2016. The chip is designed for fitness smart watches with its built-in GPS, dual-mode Bluetooth Low Energy, and support for high-resolution screens.

Their latest innovation, the Chameleon Display, is the world’s first environmentally adaptive display technology for mobile devices. It provides a seamless reading experience by adapting to the environment’s color ambience and brightness; this can help reduce eye strain for users.

Surprisingly, MediaTek started investing into the Automobile industry, but it also faces the complex challenge of adding a connected computer in each car. “We have cooperated with other firms in different fields, but it will take some time to develop,” said Hsu. MediaTek will work closely with a few Chinese firms and launch smart home products later this year.

MediaTek has been looking into the virtual reality market up until now and it will continue to be working with Google on products such as Android smartphones, tablets, GoogleCast, Android TV, and Android Wear. MediaTek is currently the main partner of Google and is developing chips to support Google’s new virtual reality platform, Daydream.

Joe Chen (陳冠州), co-chief operating officer and executive vice president of MediaTek said virtual reality can be compatible with multiple platforms such as smartphones while others require high-end PC computing. But with its high requirements, the IC (integrated circuit) specifications will also need to improve including the GPU, audio video encoding, image processing speed and resolution, etc.

According to Chen, MediaTek’s VR productions will be released soon. The goal is to enhance customer experience by developing fast computing power and a better VR experience without the usual discomfort.

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