UPDATE 1-China Techfaith Q4 profit up threefold, shrs jump

* Q4 rev up 29 pct

* Shares rise 10 pct

March 2 (Reuters) - Mobile handset-maker China TechFaith Wireless Communication Technology Ltd reported an almost three-fold jump in quarterly net income on strong growth at its high-margin QIGI-branded mobile phone and gaming businesses.

The company makes CDMA and GSM-based mobile handsets, including multimedia and smartphones, and gaming terminals that function as phones.

Shares of the company rose more than 10 percent to a near three-year high of $4.75.

Fourth-quarter net income increased to $8.9 million, or 17 cents per ADS, while revenue jumped 29 percent to $76.9 million.

The company said it was seeing growth in diverse markets for its Android-based smartphones and expected its gaming business to become more meaningful to its overall performance.

It expects to launch a software package that converts existing games into motion games, new motion gaming controllers, a gaming console box and a satellite television box in 2011.

TechFaith expects first-quarter revenue to increase 1.4-5.3 percent to $78-$81 million.

The company's shares were up 8 percent at $4.68 in morning trade on Nasadaq. More than 830,360 shares had changed hands by 11 ET - more than five times its normal volumes. (Reporting by Sayantani Ghosh; Editing by Don Sebastian)