[China] China-based handset chip designers may merge to compete with Qualcomm, MediaTek


With Qualcomm and MediaTek becomig increasingly competitive in China's handset chip solution market, China-based IC design houses have been under strong pressure and may seek to merge with one another to enhance their competitiveness, according to Taiwan-based handset supply chain makers.


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's merger with Taiwan-based fellow company MStar Semiconductor is expected to encourage China-based handset chip design houses to follow suit, the sources noted. 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