MediaTek Subsidiary Increasing Capital in RF IC Leader Vanchip

On April 30, MediaTek issued an announcement on behalf of its subsidiary Gaintech Co. Limited (“Gaintech”) to increase its capital in Vanchip (TianJin) Technology Co., Ltd.

Gaintech will subscribe for a total of 19,098,449 ordinary shares issued by Vanchip for US$40 million or equivalent RMB dollars, with a denomination of RMB1 per share.

Vanchip is engaged in the research, development, production, and sale of mobile phone radio frequency (RF) power amplifier (PA) chips. The company produces intelligent terminal RF power hardware, RF antennae, and high-end analog integrated circuits (ICs).

Vanchip is the largest RF IC design company in China. It was founded by a former RFMD employee and cut into the RF PA market with its mainstream gallium arsenide (GaAs) process. Its 4G PA shipments are the largest in China, with shipments covering the top mobile phone design companies and Xiaomi.