But why MediaTek need PMIC technology?

There are two reasons: the raise of China's domestic chip companies, and the needs of IoT solution.

MediaTek’s major market is China. But in recent years, the rise of Chinese local chip makers, such as Tsinghua Unigroup, Leadcore Tech and Hisilicon, are rapidly upgrading their technological capabilities, and have entered the domestic mobile phone supply chain, which allows Chinese brands to reduce the needs of buying mobile processor chip from overseas. That forced MediaTek to expand its competitiveness of products, while expanding other target markets.

Second, in the IoT era, sensing, connected and low-power consumption integrated solutions will become a major components for end-product manufacturers. MediaTek has showed its determination to enter the IoT market, need to make up for its lack in power management technology. In addition, IoT applications are very diverse, customized PMIC capacity will be crucial.

"Even Starting to develop now, MediaTek is to chance to catch up with RichTek." Ming-Kai Tsai, Chairman of MediaTek, said in press conference yesterday.

He noted that through this acquisition, RichTek will be integrated into MediaTek system, while MediaTek will immediately have a great leap in power management technology.

However, Richtek though is an excellent Taiwanese PMIC supplier, but it is after all a small company in terms of R&D capabilities and products in the global market. It still take time to tell that how many benefits can be brought from this acquisition in MediaTek's global operations.

But overall, this is a good move for MediaTek.