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MediaTek customers are unhappy with the proceeding that has begun
The litigation, initiated by MediaTek, may result in the loss of some rather important clients by the company, who are dissatisfied with its actions.
Recall that during the consideration of MediaTek’s complaint, Taiwanese police searched the offices of several of the company’s clients, including BenQ, a member of the Acer Group. Law enforcement agencies have not yet reported anything about the results of the search, and so far no charges have been brought forward.
So, what caused all this fuss?? According to MediaTek, the company was suspicious of unmarked chipsets on the market, which led it to speculate that Via was distributing pirated copies of MediaTek’s proprietary technology.
And everything would be fine, but the tactics chosen by the company turned out to be not so harmless for its customers. Apparently after the raid, BenQ chairman Lee criticized MediaTek, arguing that all the company’s allegations of patent infringement were groundless.
Therefore, analysts and competitors of MediaTek (and the latter, probably, not without gloating) believe that by their actions the company has caused irreparable damage to its image, even if MediaTek, which is part of UMC, has already apologized to its customers.
MediaTek’s desire to maintain the undisputed leadership in the technology market for CD-ROM, CD-RW and DVD-ROM chips is understandable. HSBC Securities Asia estimates the size of this market at nearly $ 1 billion. At the same time, the rate of return (if, of course, such a term is applicable in this case) of MediaTek was 52% in March, which is practically the highest rate of return among Taiwanese companies.
No wonder Via has entered this market where such profits are possible. And while the company’s main business is hampered by litigation with Intel, the company has found an additional source of income. But then MediaTek got in the way, which, although it refuses to admit that it has filed a lawsuit in order to prevent Via from gaining popularity in the market, it just slowed down the growth of Via’s new business.
However, there are also such MediaTek clients who did not turn away from her, saying that they would use the company’s products in the even distant future. Among such “loyal” clients are Lite-On. As for Via, due to the fact that its chipsets are almost 10% cheaper than those of MediaTek, it has already managed to win the sympathy of several small companies that are less inertial than large vendors. The market share of the company is now estimated at 15%.