MediaTek recently announced that the MStar TV chip product line will be merged with the MediaTek TV chip division, and a TV chip business will be established, which will be in line with wireless communications and smart devices.

MediaTek pointed out that this organizational adjustment is to combine the superior products and technologies of both parties to continuously strengthen technology and product investment to provide more complete and competitive products and services for global customers. According to MediaTek's plan, MStar's other product lines will be arranged separately. For example, the touch-related chip business will be transferred to MediaTek's ILITEK, the transfer completion date is expected to be October 1 this year.

In fact, MediaTek and MStar are very competitive in the Chinese mainland TV chip market. MStar even surpassed MediaTek and won the first position in the TV chip market. Later, MStar's mobile phone chip division gradually threatened MediaTek, so MediaTek acquired MStar in 2012.

As we all know, in the past few years, MediaTek's mobile chip business is not as good as Qualcomm and Spreadtrum. For this reason, MediaTek is expanding its ASIC market and other markets such as the Internet of Things. In the opinion of analysts, MediaTek's adjustment is to seize the AIOT market.

It is believed that MediaTek is laying out for the AIOT market because future smart speakers, cars, home smart devices and TVs are bound to be connected. Combined with the current smart devices such as wireless communication, multimedia and automotive, and the newly established TV chip business, MediaTek now covers almost all IoT products.