MediaTek plans to become the first chip maker to introduce high-speed 2.8M TD-SCDMA handset chips to China-based handset makers in the beginning of 2009, according to industry players.

Since some telecommunication companies are said to be planning to subsidize 3G handsets bundled with their services, the China 3G handset market is expected to grow significantly in 2009 attracting the interest of many handset chip makers, the sources noted.

The sources indicated that MediaTek hopes to take the lead in introducing 2.8M TD-SCDMA handset chips, but this may lead to a rise in counterfeit handsets as the chips deliver complete functionality and so handset makers only need to design the outer covering. But MediaTek spokesperson Mingto Yu commented that it will be impossible to produce counterfeit 3G handsets, but did not give reasons why.

MediaTek now has 384K, 2.2M and 2.8M TD-SCDMA chips in its lineup. 384K chips have been adopted by many China-based handset makers and prices of 384K 3G handsets are expected to fall to 1,500-2,000 RMB (US$219-292), the sources added.

Source:digitimes