Taiwan’s MediaTek, the semiconductor company that has fuelled the fast growth of China’s smartphone market, has lost the head of its China operations, who resigned after Taipei prosecutors said they had begun investigating him in connection with alleged insider trading, writes Sarah Mishkin.
MediaTek’s China head, Lu Hsiang-cheng, is under investigation over alleged insider trading linked to the company’s planned $3.8bn merger with another Taiwan-based chip company, MStar Semiconductor. MediaTek said Mr Lu resigned for personal reasons.
News of his resignation late on Friday comes as the company, which specialises in chips designed for use in low-cost smartphones made mostly by local brands, forecasts strong growth for the Chinese smartphone and tablet market.