China-based smartphone chip designers to merge to compete with Qualcomm

Posted on Oct 2 2012 - 10:00am by Sunny

Qualcomm, as we all know, is one of the major chip designers and manufacturers in the smart phone world. A lot of manufacturers across the world use Qualcomm’s Snapdragon line of processors in their smart phones. And the company is continuously working on improving the efficiency and features of these processors. The latest chip, the Snapdragon S4, which is a quad core processor for smart phones and tablets, has already been implemented in various mobile devices by various manufacturers in every part of the world.

In China, there are many handset chip designers who are seeing losses in their business due to the growth of Qualcomm and MediaTek. This is a serious issue and hence, many China based IC design houses have decided to merge with each other to increase their own profits and market presence, at the same time giving some tough competition to the duo. This is going to be interesting, and is a good news for China smart phone users. Competition is always good for consumers. In a way, competition results in cheaper products, at the same time being rich in features and productivity.

DigiTimes writes:

Qualcomm and MediaTek have offered quad-core chip solutions and Qualcomm’s chip solutions can support CDMA 2000, WCDMA, TD-SCDMA and LTE, while MediaTek’s can support EDGE, WCDMA and TD-SCDMA, the sources indicated. In comparison, most of China-based designers’ chip solutions support EDGE and TD-SCDMA but not WCDMA and CDMA 2000, the sources pointed out.

MediaTek is going to merge with Taiwan based design house MStar Semiconductor. And this merger is expected to encourage other design houses in China. DigiTimes quotes:

Spreadtrum Communications, which designs TD-SCDMA/EDGE chips, and RDA Microelectronics, which designs Wi-Fi/Bluetooth/FM and GSM/GPRS baseband chips, are reportedly looking to merge to integrate their technological strengths, the sources indicated. Leadcore Technology and Innofidei are also merger targets, the sources noted.

In addition, international chip vendors including Intel, Nvidia and Broadcom may acquire China-based design houses to step into TD-SCDMA chip solutions for cooperation with China-based handset vendors, the sources pointed out.

 Source: DigiTimes

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