PHILPS semiconductor merger object Intel calls louder

With PHILPS (Royal Philips Electronics) split the semiconductor department plans to move forward, a surprising name suddenly appeared in the analyst for PHILPS to the list of potential partners: Intel. Industry observers thought, Infineon, fly think of Carle (now PHILPS R & D partners) and STMicroelectronics is most likely with PHILPS semiconductor (Philips Semiconductors) semiconductor companies have reached a merger or acquisition agreement. But optimistic about Intel's argument is very convincing.

If Intel and PHILPS climbed pro, it will be combined with one of the world's largest chip manufacturer and the world's largest consumer electronics manufacturers. Intel can therefore be systematically in-depth digital consumer electronics applications, and digital consumer electronics is Intel's current potential in the battlefield. According to the Gartner rankings, the world's second and third largest chip maker Samsung and Intel and TI are closing the gap, in order to keep the position of the NO.1, to maintain its market share, Intel has no choice to enter the field of consumer electronics is more natural than countermeasures.

Intel and PHILPS merger is successful, is attractive for consumer electronics customers of PHILPS semiconductor. "We have to face the fact that the X86 framework will fully control the consumer electronics market," he said." A computer chip company executives believe. He said that if Intel intends to acquire the intention of PHILPS's semiconductor business, will have a positive impact on the consumer electronics industry". He asserted that Intel and PHILPS semiconductor has a common dream, so the alliance between them may provide a long-term value proposition for both shareholders".

But from some other problems, but they should not be paired. Intel is already the world's largest chip manufacturer, it does not necessarily need to acquire PHILPS semiconductor design advantage. The Infineon and Freescale Semiconductor, such as Carle's smaller chip companies, are facing more pressure on integration, from the acquisition or acquisition of the point of view, more likely to mergers and acquisitions. Although Intel is large, but it can not guarantee the pressure from the industry. American Technology Research, a senior analyst at Doug, believes that love with PHILPS will make Intel distraction, and will interfere with its transformation efforts in. British market research firm Future Horizons founder and CEO Malcolm Penn also believes that the combination of Intel and PHILPS is a high-risk marriage".

Alan Brown, director of research market research company Gartner Inc. said Intel is "interesting choice". But he believes that Infineon, STMicroelectronics and flying Carle is a safer choice, from a security point of view, the best thinking of flying Carle, Italy, followed by Infineon ranked third.

The choice of PHILPS

PHILPS to withdraw from the suffering of financial problems in the semiconductor business in and out, there are three options: one is to sell its semiconductor business completely; two is the merger and with a considerable scale of PHILPS semiconductor chip company, and then the reduction in the company's equity; three is the first public issue (IPO) to sell part of the shares to institutional investors. The parent company is responsible for the analysis of the value of these three options. But it may favor the latter two options, because the latter one of the two options can make PHILPS continue to exert some influence on the chip business, on the other hand, can gradually reduce its financial input. If PHILPS does not follow the merger / acquisition route, but come together with Intel, PHILPS semiconductors is likely to help the giant Intel microprocessor into the mobile phone and consumer electronics market. So far, Intel's efforts to enter the two markets have not achieved significant results. Although Intel has made some progress in the RF CMOS plant in Hillsboro, Oregon, but it is still in a backward position in terms of RF. Centrino Wi-Fi platform, it is successful, the Intel chip, but the initial design of RF front end is used in PHILPS. Similarly, Intel is pushing WiMax and WiMedia, but Intel has not yet developed a RF chip for these standards.

"Intel in the field of mobile phone development is very difficult." Analog Devices Company (ADI) Business Development Manager Doug Grant said. "They have big goals, but they don't always work out."

PHILPS executives said, PHILPS, GSM, GPRS for UMTS and Edge mobile phone Nexperia solutions have been widely used in the PHILPS mobile phone and Al Carter, Arima Group, Cellon, Ericsson, Haier, wave, NOKIA, Samsung, SIEMENS and Sony Ericsson and other company's products. Kaat, PHILPS's DVB-H based mobile TV solution, has been adopted by three of the world's largest mobile phone makers, according to Gertjan, senior vice president for PHILPS's mobile and personal business. PHILPS's products range from ultra low-cost mobile solutions to the mainstream market 3G chip, as well as high-end mobile phone multimedia processor. The company said that PHILPS's mobile multimedia processor has been adopted by three first-line OEM vendors.

But ADI Grant said PHILPS in the mobile phone market share is likely to decline. "We don't see them as important vendors anymore." He said. "They have now summon wind and call for rain in the mobile phone market, although still do some custom products, but apparently no longer."

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