MediaTek: No price hike in the near future

Monday, January 5, 2004

MediaTek: No price hike in the near future

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Despite rising production costs at foundries, Taiwan-based MediaTek has no plan to raise its optical storage chip prices in the near future, according to Taiwanese DigiTimes.

Optical storage IC design companies have faced falling average selling prices (ASPs) due to fierce market competition, and raising prices could be a risky move.

MediaTek spokesman made the remarks above when asked about reports from optical storage drive makers that MediaTek planned to raise its CD-RW and DVD-ROM chip prices.

According to sources at LCD panel manufacturers, some LCD driver IC design houses are planning to increase their prices in view of rising foundry costs. The optical storage and driver IC design companies have not provided quotes for the new prices, sources at systems manufacturers said.