MediaTek announced the acquisition of Morningstar in 2012, as the merger of the two companies started with the English name of "M" and hit the market of "size M." As the two sides reached a three-year ban consensus on the mainland TV chip market share of over 70% , MediaTek can only temporarily assume the role of pure Morningstar shareholders, both successfully completed in February 2014 equity merger.
According to the request of the Ministry of Commerce at the time, although MediaTek and Morningstar both could merge 100% shares, Morningstar's mobile phone chipset could be transferred to MediaTek. However, the TV chip divisions of both parties must maintain their independent operation within three years, Customers find another provider of chip buffer period.
Under the three-year ban imposed by the Ministry of Commerce, MediaTek chose to operate Morningstar as a subsidiary and maintain its own TV chip team to develop its own product roadmap, customers and markets, and the two sides remain competitive.
However, MOFCOM's "size M" three-year ban expired in August last year, and MediaTek released the application for formal merger every other month.
However, over a year ago, it has so far failed to get nod by the Ministry of Commerce and the representative ban has lasted for more than one year. The "size M" still maintains its independent operation.
The industry believes that for the "size M", the main difference between the TV chip team and its resources on both sides can not enter the second phase of the merger. If the merger is completed, it will reduce the duplication of investment on both sides and reduce the operating costs. Then pull up the benefits.