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Electronic information

Handset semiconductor supplier in 2008 faced the challenge of competitiveness

In Electronic Infomation Category: R | on November   1, 2010

According to iSuppli Corporation, despite the global mobile phone baseband semiconductor market will continue to expand in 2008, but front-line customer base shrinking and MC3487N datasheet and increasingly complex requirements of these customers, baseband semiconductor suppliers will face more challenging business environment These factors are pushing up R & D requirements.

The challenge is how to address the cost of maintaining the competitiveness of the rising problem, while maintaining profit margins. In such a business environment to succeed, depends on many factors, but one of the most crucial factor is to achieve critical mass - production and MC3487N price and R & D is true.

2008 global handset baseband semiconductor revenue will grow to 166 billion dollars, 15.2 billion U.S. dollars in 2007 increased by 9.3%. In addition, the overall mobile phone semiconductor market in 2011 from 2006 sales of 386 billion U.S. dollars up to 480 billion, a CAGR of 4.4%. However, in 2007, iSuppli estimated that more than 80% of semiconductor demand from mobile phone base with five mobile phone OEM manufacturers. The higher than three years ago, was slightly less than 70%. This focus on the trend in increasing demand. In addition, due to meet high-end mobile phone upgrade new sales areas and MC3487N suppliers and areas of low-end often conflicting needs of the importance of the five largest mobile phone OEM manufacturers need in a shorter period of time to introduce more models.

These phones with a variety of styles to form factor, user interface / experience and application support levels, and with the right combination of features to meet specific objectives of the users specific needs and price range. The factors are pushing low-end mobile phone manufacturers in the OEM market for more style. This also forces them to examine how price-sensitive low end / entry level market with these features.

In addition, since most mature voice and data network, and power users in addition to technical mastery of the outside, the phone has been a lot of popularity with consumers, so mobile phone OEM manufacturers in the wireless interface technology can no longer seek differentiation. This is because most consumers do not care what the phone using the technology to meet the demand as long as you can.

Therefore, the five major mobile phone OEM manufacturers are turning to more platform-based reference design to be used in multiple models. They also greater use of single-chip solution, the solution not only integrates the baseband and RF transceiver, but also integrates this with the extra multimedia connectivity solutions - the Bluetooth and WLAN, for the low end / entry level market. Requirements of these two types of solutions for all major mobile phone manufacturers in the functional areas with a high level of intellectual property and expertise.

In this regard, the size of mobile phone semiconductor suppliers do play an important role, it can support the companies R & D activities, the introduction of competitive single-chip and platform-based solutions, while still able to create acceptable profit rate. Taking into account all factors, iSuppli estimated that the critical mass of suppliers, measured in terms of sales, it should be 10 billion U.S. dollars. Reached such a critical mass of influence, by comparing the sales of greater than or equal to 10 billion supplier from 2004 to the current changes in market share to quantify the share of these suppliers from 54% to 75% . The proportion of the next rise. To achieve the above critical mass, or continue to expand on the basis of its present size, semiconductor suppliers are taking various means, including those already in a good position in the companys organic growth and mergers, acquisitions and alliances.

2007 in one year, major mergers and alliances include:
Infineon / LSI acquisition
Mediatek / ADI acquisition
NXP / Silicon Labs acquisition
Texas Instruments / EMP alliance
Nokia / ST Association

ISuppli expected in 2008 will continue to maintain this trend of integration and association.

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