In order Qualcomm chip foundry core $120 million a master hand's first small display

"Shipments before each quarter Qualcomm chips are stable at 10 million to 15 million, but in recent quarters, monthly shipments increased to 50 million, which means that we need to find new partners to improve capacity." September 25th, Qualcomm Technology Group Vice President Abdi (Behrooz Abdi) announced, and semiconductor manufacturing International Co. Ltd. (hereinafter referred to as "SMIC foundry") officially launched strategic cooperation.

This is the first time the mainland China Manufacturers Qualcomm chip manufacturers, but also means that Qualcomm's business layout in China further." Industry analysis. Currently, Qualcomm is the world's largest integrated production line (IFM) chip provider, its own chip production lines, mainly by Samsung, TSMC, licensed semiconductor chip manufacturers.

According to the strategic agreement signed by Qualcomm and SMIC, the focus of bilateral cooperation will focus on the power management chip. "We started the technical cooperation because the core has been in cooperation with Freescale in this technology to obtain good experience." Abdi said that this is only the starting point of cooperation, there will be a deeper cooperation in the future.

In the future according to Abdi revealed that within a year, SMIC will Qualcomm contract chip more than 50 thousand, more than $120 million the amount of cooperation.

In fact, since 2003 announced the investment of $100 million to support China's high-tech enterprises, Qualcomm Corp has been expanding the layout of the Chinese market. Qualcomm China business accounted for the proportion of global revenue has been 2004 from fiscal year 8%, the rapid growth to the current level of 16%.

But Qualcomm's strategic layout of China's supply chain is still short board. Because Qualcomm itself has no chip production lines, had no OEM cooperation at home, so the market share occupied 1/6 China, products from overseas to supply, regardless of localization services, cost control or local supply chain management are affected.

According to reports, Qualcomm and SMIC cooperation in fact began 1 years ago. Under the premise of technical requirements, we choose partners to consider 3 factors: capacity, service, cost." Abdi with particular emphasis on cooperation with SMIC, Qualcomm Corp can bring advantages for customers to reduce costs and shorten the time to market level, "the efforts of SMIC for us to cut costs and commitment".

According to the production line Semiconductor Association (FSA) in 2005, the world's total revenue ranking Qualcomm Corp in the world without the production line chip providers ranked highest in the list, while the core is ranked third in the wafer foundries.

One of the most important factors for international manufacturers to choose a partner is the production capacity, SMIC will continue to improve their production capacity to meet customer requirements." SMIC President Zhang Rujing said.