Qualcomm negotiates purchase of TD manufacturer Suzhou Aoshitong to eat the 3G chip market
Lian Jiaxing, general manager of Shenzhen Quansheng Litong Company, has been busy communicating with customers recently to test its newly developed mobile video and voice software VOT, hoping to use the Microsoft Mobile smartphone solution of MediaTek (MTK) in Taiwan Sell â€‹â€‹well, find a pot of gold in the 2G smartphone market as soon as possible.
"The 3G opportunities of Shenzhen cottage mobile phone manufacturers are too uncertain. Perhaps smartphones are the last bucket of gold for cottage mobile phone manufacturers." In fact, Lian Jiaxing's concerns come from the recent actions of CDMA chip giant Qualcomm.
Recently, CBN reporters learned from multiple sources that Qualcomm is currently negotiating to purchase TD chip manufacturer Suzhou Aoshitong, but it has not yet signed a final agreement. On November 20th, MTK, the "father of the cottage", also signed a WCDMA 3G chip licensing agreement with Qualcomm with a zero license fee. Although MTK â€™s WCDMA chip shipment does not pay royalties, MTK customers need to obtain patents from Qualcomm separately. Authorization.
"Qualcomm's high patent fees may block the 3G livelihood of cottage manufacturers." Lian Jiaxing pointed out that Qualcomm is almost an oligarch in the CDMA EVDO chip market, and now it is involved in the WCDMA market through MTK. This means that Qualcomm is embarking on a one-man show in the 3G markets of TD-SCDMA, CDMA EVDO and WCDMA.
Qualcomm 3G conspiracy?
"We and Qualcomm only talked about the patent authorization of the WCDMA chip part." Relevant persons in MTK China told the CBN reporter yesterday that according to Qualcomm's consistent patent authorization practice: chip manufacturers and terminal manufacturers should charge patent authorization fees. Therefore, the future WCDMA terminal manufacturers still have to pay Qualcomm's patent fees separately.
MTK's mobile phone chip shipments will reach 300 million this year, accounting for nearly 30% of the global mobile phone chip market, of which the proportion of foreign sales has exceeded 50%. The WCDMA market in China and overseas is emerging, but the zero license agreement between MTK and Qualcomm will undoubtedly add uncertainty to the future of cottage WCDMA mobile phones.
"How the WCDMA market develops actually depends on Qualcomm's market strategy." The above-mentioned relevant person said. Because, according to Qualcomm's game rules in the CDMA market, terminal development authorization fees are often as high as 10 million yuan.
Qualcomm is still coveting China's TD-SCDMA market after winning the CDMA EVDO and WCDMA markets.
On November 17, Qualcomm CEO Paul Jacobs (Jacob) said that Qualcomm will sell TD-SCDMA chip products in the Chinese market in 2010. Industry insiders speculate that Qualcomm's TD-SCDMA chip should be developed by Aoshitong.
Regarding Qualcomm's negotiation on the purchase of Suzhou Aoshitong, a relevant person from Qualcomm China said that it has not received any relevant information. Ao Shitong general manager Fang Ming also denied this news in a telephone interview with a CBN reporter. He said that if the TD market has not reached 10 million users, it is difficult to have similar acquisitions.
However, the relevant person of the mobile phone chip manufacturer Broadcom told the CBN reporter that Ao Shitong has been looking for buyers. It has previously discussed the acquisition with Broadcom, but eventually did not have any follow-up, and later got on the line with Qualcomm.
TD chip undercurrent surge
"Qualcomm's negotiation on the purchase of Aoshitong is not yet finalized. Even if the acquisition is successful, it will not pose a threat to the development of China's TD in the next year or two." The relevant person in charge of TD chip manufacturer Lian Chip Technology told CBN reporters that TD-SCDMA After all, it's China's own thing, and Qualcomm needs a patent license to come in. And Qualcomm's entry into TD just shows that international giants are recognizing TD.
Nonetheless, Qualcomm â€™s claim that it poses a threat to TD is not unreasonable. Qualcomm China officials said that regardless of WCDMA, TD-SCDMA and CDMA EVDO, the technical basis of the three 3G standards is CDMA. Therefore, Qualcomm â€™s underlying patents on CDMA are impossible to bypass.
Whether Qualcomm really poses a threat to the TD industry chain has not yet been determined, but China Mobile â€™s recent TD New Deal and the gradual increase in TD terminal sales have made MTK â€™s old rival in Taiwan, MStar, delighted.
Since the beginning of this year, MStar has learned the MTK model and entered the 2G market in mainland China. On the other hand, it acquired Shanghai Jiemai Communication through capital means to enter the TD market. "The company itself has not changed, but the overseas parent company has capital cooperation with MStar." Li Jun, general manager of Jiemai Communications, vaguely answered the CBN reporter's verification on the phone. However, the CBN reporter also found at the China Intellectual Property Office that there are two TD-related patents jointly owned by Jiemai Communications and MStar.
However, by coincidence, the executives of Aistron and Jiemai Communications originated from Kaiming, a TD chip manufacturer that suddenly ceased operations at the end of last year. At that time, Kaiming also owned 139 TD-related patents.
Industry insiders pointed out that if Qualcomm's successful acquisition of Aoshitong will make TD chip providers exclusively from the previous local companies become increasingly international. At present, mainland TD chip companies include Shanghai Spreadtrum, Chongqing Chongyou, Shanghai Lianxin, Taiwanese companies include MTK and MStar, and foreign companies include Qualcomm, T3G and Marvell.
"The 3 + 2 + 3 TD chip pattern will make the TD chip market in 2010 more competitive." The industry source said.
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