The semiconductor giants get together cheap chips carve up tens of billions of dollars in the market

"Cheap" chip war

Newspaper reporter Li Jing Beijing reported

The famous's mobile phone chip suppliers with TI is to effectively reduce the cost of production of low-cost means to quickly capture the market China. October 19th, TI announced that TCL Communications Technology Co., Ltd. (TCT) chose TI's low-cost mobile phone chip technology will be in the near future mass market, the product is only $40. While TI is responsible for the advanced wireless chip architecture Bill Krenik said that by the end of 2008 the wholesale price of mobile phones may be as low as $15 (about 120 yuan).

Uses the same competitive strategy and Infineon Corporation. The day before, Infineon announced the launch of the single chip GSM based solutions to ultra low cost (ULC) mobile phone reference design platform, the GSM mobile phone (with SMS function) is expected to reduce the cost of the half, from the current nearly $35 less than $20. The mobile terminal division vice president and general manager of the company Chen Rongkun said: in the low-end mobile phone only with SMS function and easy operation of the mobile phone demand is still growing, many people do not value the basic feature phone camera, Internet, music and games. Single chip platform is specifically targeted at these users.

According to market analysts expected: in 2010 there will be more than 150 million of the wholesale price of less than $50 super cheap mobile phone sales in the market. Chen Rongkun believes that the low-end mobile phones need more reliability, ease of use, good man-machine interface, because the current mobile phone complaints is the most low-end mobile phones.

Of Intel's ambitions

When TI, Infineon chip supplier so eager to expand when market share through the single chip strategy, Intel, this will be a foot in the wireless communications market PC chip giant is to sell their products concept. Intel repeatedly stressed that chip integration is the key to promote the integration of computing and communications equipment, with the introduction of more and more multimedia mobile applications, the integration of computing and communications equipment will be popular.

In fact, new competitors such as TI, Infineon as the world's most prestigious supplier of mobile phone chips is suffering more and more. Five years ago, when Intel found a small cell phone is becoming an adult's palm business and entertainment center, the chip big brother will step into the field of wireless communications. In Intel seems that the trend of intelligent mobile phone is more dominated by Intel PC chip opens a gateway to the field of mobile phones. In the field of mobile terminals, in addition to Samsung, NOKIA mobile phone chiefs have already started their own chips.

TI in the development of the latest notices that it has developed a mobile phone chipset includes a processor and a modem products. TI said that this new design will allow mobile phone manufacturers such as NOKIA and Samsung Corp to develop a lower price and can quickly handle video and 3D games, mobile terminal products.

Now Intel must prove that it is able to do these, to catch up with rivals may. Although Intel CEO Otellini has said that Intel had no intention of turning into the upstream communications vendors, but the PC chip overlord is increasingly interested in the field of communication. Starting from the launch of Centrino technology, to launch their mobile phone chip, Intel modular platform along this route, not only takes into the field of wireless communications, and more and more deep penetration.

"In the future 3G era, we are not integrators, nor content providers, only very modest producers!" Intel executives have publicly said. People care, once with Centrino chip and Wi-Fi technology in the field of personal computer to create the brilliant record of Intel in the mobile phone chip can add on the myth?

In early 2003, Intel launched a new code for the mobile phone chip PXA800F, the chip can be data processing, memory and communication functions are integrated together, enabling users to easily implement such as video conferencing, online games and other wireless Internet applications, Intel in the second half of this chip market.

This new mobile phone chip attracted industry attention to the TI.

From the current size of the market, the new Intel chip for mobile phone market share is very limited, in 2004 is expected to the mobile phone shipments of about 570 million units, of which only about 10 million of integration of the new technology WCDMA. In compatibility, battery life and price, this new type of mobile phones are considered to have some defects, it is difficult to break through in the market. In contrast, the intimate relationship between TI and mobile phone manufacturers is the best weapon, mobile phone leader NOKIA and TI's tacit understanding is in long-term cooperation concluded and software and chip provided by TI for NOKIA are tailored, need a few months or even a year or more development time, which makes NOKIA almost impossible to consider to choose partners.

But, in the past five years, Intel has improved its chip products, and is committed to create their own influence and cooperation environment, are in close contact with South Korea's Samsung Electronics, LG electronics, Pantech, South Korea's three largest mobile phone company, and Japan's NTT DoCoMo also reached a cooperation intention to participate in the 3G mobile phone chip.

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