MediaTek bought a major stake in a Chinese developer of mobile phone software, just weeks after buying most of its products and intellectual property.The Taiwanese chip designer paid US$1 million for a share of Beijing software developer Pollex Mobile Software as it expands its business to provide chips for ultra-low-cost handsets. The company faces tough competition in the market from other chip developers, including Texas Instruments and Infineon Technologies. Users in areas where ultra-low-cost handsets are popular, such as China and India, should benefit from the chip rivalry because chips are the most expensive part inside a mobile phone, and the competition should help reduce prices.MediaTek cited strong sales of mobile phone chips in China as one of the key reasons it posted strong earnings in the third quarter. Although an English translation was not available, it appears that Pollex will be renamed MediaTek Pollex Technology. MediaTek officials could not be immediately reached for comment. In a statement, the company said the Pollex purchase will help it expand its wireless business in China and improve its customer service.China boasts the largest mobile phone user population in the world, at well over 400 million, according to government data. A few weeks ago, MediaTek bought the rights to several dozen software and middleware applications from Pollex for US$13 million. MediaTek may have purchased the software and patents first and then separately paid for a stake in the company in order to avoid hassles caused by strict Taiwanese investment regulations regarding China, one analyst said.-Dan Nystedt, IDG News Service (Taipei Bureau)Related Link: MediaTek Expands Its Mobile Phone BizCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost Sponsored by Palo Alto Networks Operational technology systems require a robust Zero Trust strategy in 2024 Zero Trust provides a foundation for creating a stronger security posture in 2024. By Navneet Singh, vice president of marketing, network security, Palo Alto Networks Dec 05, 2023 6 mins Security brandpost Sponsored by AWS in collaboration with IBM How digital twin technology is changing complex industrial processes forever As the use cases for digital twins proliferate, it is becoming clear that data-driven enterprises with a track record of innovation stand the best chance of success. By Laura McEwan Dec 05, 2023 4 mins Digital Transformation brandpost Sponsored by AWS in collaboration with IBM Why modernising applications needs to be a ‘must’ for businesses seeking growth Around one-third of enterprises are spending heavily on application modernisation and aiming for cloud native status. The implications for corporate culture, structure and priorities will be profound. By Laura McEwan Dec 05, 2023 5 mins Digital Transformation opinion 11 ways to reduce your IT costs now Reorienting IT’s budget toward future opportunities is a big reason why CIOs should review their IT portfolios with an eye toward curbing unnecessary spending and realizing maximum value from every IT investment. By Stephanie Overby Dec 05, 2023 11 mins Budget Cloud Management IT Governance Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe