MediaTek wants the smartphone market

MediaTek has released a new chip the MT6577 which combines an ARM Cortex-A9 dual CPU with their 3G/HSPA modem and a graphics subsystem based on Imagination Technologies' PowerVR Series5 SGX. This will allow 1080p encoding and playback at 15 or 30 frames per second (using a 1080 by 720 display) and supports an 8MP camera and can support a stereo camera too. The 40nm process silicon is being produced by TSMC (Taiwan Semiconductor Manufacturing Company Limited) and MediaTek are already in talks with vendors and devices should be available by Q3 this year. MediaTek are already the largest supply of baseband units, but it's a high volume low margin business. This should add value, however this will enable smart phones to be produced in the $150 - $200 range while existing smart phones with similar specifications cost around the $500 mark. This puts MediaTek directly against Qualcomm and their Snapdragon cores.