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Further Chip Vendor Consolidation on Horizon

04 сентября 2008

The Strategy Analytics Handset Component Technologies service report, “ST-NXP Wireless and EMP Create European Powerhouse as Wireless Chipset Consolidation Continues,” analyzes the impact of the recently announced 50-50 joint venture between ST-NXP Wireless and Ericsson Mobile Platforms (EMP) on the cellphone industry as a whole and on the competitive landscape.

This move highlights the accelerating rate of consolidation in the wireless chip industry. It will put pressure on Freescale, Broadcom, Infineon and other suppliers with a limited customer base and relatively low chipset market share.

Last week’s announcement by STMicro and EMP comes only 4 months after STMicro and NXP revealed that they would join forces to create ST-NXP Wireless.

“The STMicro and EMP joint venture creates a strong 3G player with a broad range of 3G platforms up its sleeve to challenge market leaders Qualcomm and TI. With the addition of EMP, this new company now boasts a strong product roadmap, which is important for remaining in the R&D-intensive and fast-moving cellular chip market,” commented Sravan Kundojjala, Analyst at Strategy Analytics.

Stuart Robinson, Director of the Strategy Analytics Handset Component Services, added, “The new joint venture between STMicro and EMP will create a clear number three player in the cellular semiconductor industry, with combined revenues of $3.6 billion. This equates to a 19 percent market share, behind leaders Qualcomm, 29 percent, and Texas Instruments, 28 percent. It puts further pressure on other small chip vendors to combine forces and fight for market share, or to be forced into niche market segments. We have definitely not seen the end of the consolidation just yet.”

Источник: Strategy Analytics

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