XMind

MediaTEK content meeting hardware - JPMorgen

1. Sales summry

   1. Handset shipment by region

   2. Handset shipment by unit

   3. Africa and Middle-East - expect 2.5/2.7 G to continue to grow by at least 20% in 2010

2. India market

   1. India was trailing China by a few years

   2. Micromax uses 100% MTK solution

      1. ex-Nokia distributor

      2. buy from Tianyu (天宇朗通)

   3. Spice 80% share MTK solution

      1. ex-Samsung distributor

      2. buy from Konka (康加集團)

3. Customer penetration

   1. Brand-name

      1. Moto, LG, ZTE. Alcatel, Philips

   2. Operators

      1. Vodafone, T-Mobile, Orange, O2, Telefonica, Virgin mobile, Digicel

      2. China Mobile

         1. 50%+ of offerings by model

4. whitebox strategy

   1. New model roll out cycle

      1. MTK 4 months

      2. Others : 3~4 quarters

   2. BOM cost competition

      1. Nokia / Samsung had lower BOM due the volume

      2. MTK will roll out USD$10 solution to compete

5. Key concern on management

   1. Compete to QCOM in manpower ?

      1. QCOM vs MTK=16K vs 2K engineers

      2. ADI acquisition done

         1. turn to innovator company

      3. Need to hire the best people in EU and NA

         1. Incentive program?

         2. Only need 50 top talents as innovator

            1. lay-off ?

      4. will raise the strength of the Asian teams

6. Content strategy

   1. MTK 買Vogins (沃勤科技) 作為自有應用平臺

      1. MTK hold Vogins 75% share

      2. User can get Vogins only if they use MTK Chips

   2. MTK provides both H/W and S/W platforms but only pay the chips

   3. Likes common platform which everybody can build their AP stores

   4. Vokins became MTK install-based platforms, 1 bn user after 2yrs smart phone solution released

7. MTK smartphone strategy

   1. Windows Mobile deal in final stage

   2. MTK treat Andriod as standardize solution

      1. 1st-tier will move-away from Android to have more control on their own idea

      2. 2nd-tier may have not resources and stay in Android to compete with 1st-tier OS and APP,

      3. MTK will provide Android+ solution to mid/small size Smart phone player

      4. MTK Android+ solution may deployed by end of 2010

8. 3G situation

   1. Poor competition on 3G chip portfolio: QCOM vs MTK = 10 vs 1

   2. Chinese companies treat MTK as second source of QCOMM (it's quite not good sounds)

   3. 3G chip ASP will also decline, the HSDPA+ chip will be rolled out in 2010

   4. It's hard to penetrate because Operators tend to subsidize the 3G phone on EU and N.A. market,

      1. (MTK 3G focused market still on China and Emerging regions)

   5. The agreement with QCOM, Customer pay the same royalty fee both on QCOM or MTK solutions

      1. for the Chip, MTK had same Competitive position to QCOM chips

      2. (But for Intellectual Property, MTK played the role of subsidiary to QCOM)

9. Product line

   1. Feature phone

      1. SoC MT6253 rollout in 4Q09

      2. volume USD$10 phone roll out in recently

   2. 3G

      1. TD-SCDMA

         1. 50% market share in China

      2. WCDM

         1. Signed agreement with QCOM

         2. One 3G enable solution ready

         3. peripheral IC, WiFi will be implement

         4. MSFT WM license on final stage