MediaTek said it plans to boost its workforce by as much as 50 percent next year as the company increases production of chips used in mobile phones. The Taiwan-based company plans to add as many as 600 workers to its 1,200 employees to help meet demand, according to MediaTek's chief financial officer Yu Ming-to.

"We set the target high for next year," Yu said. "Some of the positions may not be filled, because engineers sometimes are hard to find."

MediaTek, which supplies chips for about half of the world's DVD players, is relying more and more on semiconductors used in handsets that can function as cameras and music players. The company on Aug. 3 said these chips will make up 21 percent of third-quarter sales, up from 19 percent in the previous three months.

MediaTek started manufacturing cellphone chips in the third quarter last year, when there was a glut of chips used in DVD players and recorders. The handset chips contributed 2 percent of MediaTek's revenue at that time.

The company on Aug. 3 forecast third-quarter revenue would rise 15 percent from the previous three months, while the profit margin would remain at the same level. MediaTek's profit margin widened to 54.4 percent in the second quarter from 47.9 percent a year earlier.