Taiwanese chipmaker MediaTek inks manufacturing deal for India market


Taiwanese chipmaker MediaTek is increasing its focus on the Indian market and has entered into a new exclusive partnership with VVDN Technologies to locally produce smart devices for various original device makers (ODM) in India. 

The move is aimed at growing its non-handset business in India especially at a time when adoption of smart home devices are picking up due to improving wireless and wireline connectivity.

The partnership comes at a time when India is encouraging global technology companies to further localise their operations by investing in domestic manufacturing. 

Under the partnership agreement, MediaTek will be working closely to design, develop, and manufacture “new-age AIoT solutions”, including camera solutions, home automation solutions, and Voice Assistant devices and smart speakers. 

These smart devices powered by MediaTek chipset will be rolled out in India in the fourth quarter of 2020. 

“India remains a key growth market for us, both in terms of business value proposition and talent pool. We are keen to enable the ’Make in India’ narrative by collaborating with indigenous device makers like VVDN Technologies to create smart solutions in India, targeted at both Indian and global consumers,” said Anku Jain, Managing Director, MediaTek India.

A recent report by techARC recently said that amongst chipset manufacturers, MediaTek leads in terms of adoption of its chipset solution by various OEMs across several devices including TVs, smart speakers, set-top-boxes, true wireless speakers among others. 

“VVDN’s collaboration with MediaTek will enable us to work together on innovative and cost-effective smart devices at our Global Innovation Park (GIP) manufacturing hub in Manesar which houses an elaborate R&D,  design, engineering and electronic Manufacturing Facility. We look forward to a long and successful alliance with MediaTek,” said Vivek Bansal, President Engineering and Co-founder, VVDN Technologies.

VVDN Technologies, India’s home-bred telecom contract manufacturer, is currently expanding its local manufacturing for 5G equipment for local and global telecom operators, having bagged a 5G manufacturing contract from Sterlite Technologies. It is also working with Airtel and Japan’s Rakuten through ipartners to provide WiFi and 5G products. 

MediaTek, which is world’s 4th largest global fabless semiconductor company, claims that 43%-48% of its overall revenue comes from smartphones and tablets, while 28-33% revenue comes from AIoT and Connectivity Solutions like  Wi-Fi and Bluetooth.

The remaining 20-25% of the revenue is led by smart-home and other categories which includes Digital TVs, DVD Players, optical storage and feature phones.

The chipmaker is also gearing up to cash in on the 5G wave in India and said that it is ready with its 5G portfolio. 

“We have been pretty much ready and once India starts picking up, we should be there… and start matching the OEM and operator expectations. So far, MediaTek in 5G is at a fairly good level, and we should be able to achieve our objectives once 5G starts ramping up and taking up serious shape in the Indian market,” MediaTek India Director Corporate Sales Kuldeep Malik said during an online session with Indian media.

MediaTek has two R&D centers in India located in Noida and Bangalore that are helping the company develop solutions for both local and global markets.

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