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 How Infosys and Tennis Australia are harnessing technology for good By Veronica Lew Mar 26, 2023 6 mins Infosys BrandPost Retail innovation playbook: Fast, economical transformation on Microsoft Cloud For retailers, tight integration of data and systems is the antidote to a challenging economy. By Tata Consultancy Services Mar 24, 2023 3 mins Retail Industry Digital Transformation BrandPost How retailers are empowering business transformation with TCS and Microsoft Cloud AI-powered omnichannel integration and a strong, secure digital core lets retailers innovate across four primary areas while staying compliant, maintaining security and preventing fraud. By Tata Consultancy Services Mar 24, 2023 4 mins Retail Industry Cloud Computing BrandPost How to Build ROI from Cloud Migration This whitepaper and webcast can help you calculate the ROI and create a business case for modernizing your legacy applications to the Microsoft Cloud. By Tata Consultancy Services Mar 24, 2023 1 min Retail Industry Cloud Computing 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