In order to reduce the dependence on foreign mobile chip manufacturing and solve the shortage of smart phones in the context of rapid popularization of the chip, Fujitsu joint NEC, NTTDocomo set up a new company to produce smart machine chips, new competitors continue to join the mobile chip market to get back on the scene.
The mobile chip market is attracting more and more diggers. Recently, Fujitsu teamed up with NTTDocomo, NEC, and Fujitsu Semiconductor to achieve strategic cooperation and set up a new communications chip company to challenge the industry's giants. The communications industry is in the process of change, and the existence of variables in the mobile phone chip market has given new entrants the opportunity to catch up. At the same time, the Japanese electronics industry fell into a crisis of development and developed in a group. The reintegration of the industrial chain became the choice of Japanese companies. However, it remains to be seen whether the new Fujitsu-created company will be able to differentiate its smartphone market.
The company was escaping from the short board. According to reports, the new company's name is "AccessNetwork Technology" (ANT), the registered capital is 100 million yen, Fujitsu will hold 52.8% of the shares, and NTTDocomo, NEC, and Fujitsu Semiconductor will each hold 19.9%. 17.8% and 9.5% of shares. The new company will develop chips for controlling wireless communications and signals, and the production business will be outsourced to other companies, striving to win a 7% share of the global smart phone chip market by 2014. In addition, the company will also develop products for LTE networks and next-generation network technologies.
This move will inevitably pose challenges to Qualcomm, the ruler of the mobile chip market. Today, Qualcomm is the only mobile chip company in the world that supports Apple, Google, and Microsoft at the same time, accounting for 70% to 80% of the smartphone chip market. However, smart phones have increased in volume in the world, especially in emerging markets. The accelerated research and development cycle has imposed higher demands on chip supply. Inadequate production capacity has become a problem that plagues the development of the industry.
In April, Qualcomm warned that it would not be able to meet the demand for its advanced chips due to a shortage of 28-nm Snapdragon chips due to insufficient capacity from contract manufacturing company TSMC. As a result, earlier this year, smart phone and tablet makers encountered uncertainty about chip supply. The latest financial report released recently showed that Qualcomm’s revenue, profit, and shipments in April-June were down compared with the previous quarter. Qualcomm also lowered its revenue for the fourth quarter. Some analysts believe that this is related to the lack of capacity. Qualcomm responded that the problem of supply shortage will be eased by the end of this year.
The imbalance of supply and demand in the market gives new entrants opportunities. Fujitsu stated that the new company was established to reduce the reliance on mobile chip makers outside of Japan and solve the problem of chip shortage in the rapid spread of smartphones, and provide a stable chip supply for Japanese manufacturers.
Low-end and LTE markets give birth to catch-up opportunities From a larger perspective, Fujitsu leads the establishment of mobile phone chip companies to comply with the needs of the times. The rapid development of the smart phone market has created opportunities for mobile chip vendors. Taking Apple as an example, driven by the strong sales of Apple products such as the iPhone and iPad, the sales volume of smart phones and tablet computers has surpassed that of traditional computer chips, and it has maintained a high growth rate. iSuppli expects that Apple will purchase $28 billion chips this year, an increase of 15.1%.
The mobile Internet has brought about tremendous changes in the IT industry. In this fast-moving and rapidly changing market, competition and opportunities are commonplace. In this process, the industry giants intend to expand their sphere of influence by virtue of their existing advantages. As a newcomer to the industry, it is not easy to challenge the monopolist of the industry, but fortunately, the communications industry in the midst of change has many opportunities. Today, in the field of smart phones, the two major potential markets are attracting the attention of all parties in the industry chain: one is the low-end smart phone market, and the other is the LTE terminal market.
This gave the "second tier" chip makers the opportunity to move toward the "first tier."
With the expansion and optimization of network coverage, the popularity of smart phones has accelerated. Market research company ABIResearch predicts that by 2017, cheap smartphones will account for approximately 42% of the global smartphone shipments, up from approximately 14% in 2010. Chip companies such as Qualcomm, Intel, and MediaTek have all targeted the low-price handset market, which is generally priced below US$200, and hope to obtain huge sales through this rapidly growing field. Especially in emerging markets, such as China, 3G is on the eve of scale growth, bringing in an explosion of thousands of smart phones. Analysys International said that nearly two-thirds of smartphones in China belong to low-end smartphones.
In addition, global operators are scrambling to deploy LTE networks, and LTE terminals have become new flavors in the market. Digitimes predicts that total LTE smartphone shipments in 2016 will reach 586 million units, which will be more than nine times the estimated 64 million LTE smartphone shipments in 2012. It looks like 2013 will be a real turning point in the growth of LTE smartphones and it is expected that shipments will increase by a factor of two to 188 million units next year. The vision for the new company formed by Fujitsu and others is to develop products for LTE networks and next-generation network technologies.
Competition intensifies chip market changes As the new army enters the war situation, the mobile chip market competition has stepped into a stage of intense competition, causing chip prices to continue to fall and price wars to escalate. Fujitsu's original intention of establishing a mobile phone chip company is very good, but it also faces many challenges.
First of all, Qualcomm is a large mountain in front of Hengping. As a leader in the industry, Qualcomm's strategy has always been to develop high-performance, low-power chipsets for mobile phones and tablet PCs. It has a 2-3 year advantage in chip integration. Today, Qualcomm, which has always been on the high road, has also begun to engage in low-end markets. With its advantages in technology and scale, it has a competitive edge in high-end, low-end and end-market markets.
Secondly, the constantly changing chip manufacturers bring more variables to the mobile chip market. In the PC market, Intel has begun to shift to the mobile sector; the shipment of MediaTek chips in the Chinese market has been ultra-high-pass, and its power can not be ignored; Samsung recently announced the world's fastest embedded NAND chip, and said it will use For the next generation of mobile products...
For the just-established ANT, it is important to keep pace with the industry and quickly establish industrial partners to achieve economies of scale. Although positioning itself in Japan, in a high-growth emerging market, ANT may be able to find a way to break through the gaps in the same market with comprehensive strength.
The mobile chip market is attracting more and more diggers. Recently, Fujitsu teamed up with NTTDocomo, NEC, and Fujitsu Semiconductor to achieve strategic cooperation and set up a new communications chip company to challenge the industry's giants. The communications industry is in the process of change, and the existence of variables in the mobile phone chip market has given new entrants the opportunity to catch up. At the same time, the Japanese electronics industry fell into a crisis of development and developed in a group. The reintegration of the industrial chain became the choice of Japanese companies. However, it remains to be seen whether the new Fujitsu-created company will be able to differentiate its smartphone market.
The company was escaping from the short board. According to reports, the new company's name is "AccessNetwork Technology" (ANT), the registered capital is 100 million yen, Fujitsu will hold 52.8% of the shares, and NTTDocomo, NEC, and Fujitsu Semiconductor will each hold 19.9%. 17.8% and 9.5% of shares. The new company will develop chips for controlling wireless communications and signals, and the production business will be outsourced to other companies, striving to win a 7% share of the global smart phone chip market by 2014. In addition, the company will also develop products for LTE networks and next-generation network technologies.
This move will inevitably pose challenges to Qualcomm, the ruler of the mobile chip market. Today, Qualcomm is the only mobile chip company in the world that supports Apple, Google, and Microsoft at the same time, accounting for 70% to 80% of the smartphone chip market. However, smart phones have increased in volume in the world, especially in emerging markets. The accelerated research and development cycle has imposed higher demands on chip supply. Inadequate production capacity has become a problem that plagues the development of the industry.
In April, Qualcomm warned that it would not be able to meet the demand for its advanced chips due to a shortage of 28-nm Snapdragon chips due to insufficient capacity from contract manufacturing company TSMC. As a result, earlier this year, smart phone and tablet makers encountered uncertainty about chip supply. The latest financial report released recently showed that Qualcomm’s revenue, profit, and shipments in April-June were down compared with the previous quarter. Qualcomm also lowered its revenue for the fourth quarter. Some analysts believe that this is related to the lack of capacity. Qualcomm responded that the problem of supply shortage will be eased by the end of this year.
The imbalance of supply and demand in the market gives new entrants opportunities. Fujitsu stated that the new company was established to reduce the reliance on mobile chip makers outside of Japan and solve the problem of chip shortage in the rapid spread of smartphones, and provide a stable chip supply for Japanese manufacturers.
Low-end and LTE markets give birth to catch-up opportunities From a larger perspective, Fujitsu leads the establishment of mobile phone chip companies to comply with the needs of the times. The rapid development of the smart phone market has created opportunities for mobile chip vendors. Taking Apple as an example, driven by the strong sales of Apple products such as the iPhone and iPad, the sales volume of smart phones and tablet computers has surpassed that of traditional computer chips, and it has maintained a high growth rate. iSuppli expects that Apple will purchase $28 billion chips this year, an increase of 15.1%.
The mobile Internet has brought about tremendous changes in the IT industry. In this fast-moving and rapidly changing market, competition and opportunities are commonplace. In this process, the industry giants intend to expand their sphere of influence by virtue of their existing advantages. As a newcomer to the industry, it is not easy to challenge the monopolist of the industry, but fortunately, the communications industry in the midst of change has many opportunities. Today, in the field of smart phones, the two major potential markets are attracting the attention of all parties in the industry chain: one is the low-end smart phone market, and the other is the LTE terminal market.
This gave the "second tier" chip makers the opportunity to move toward the "first tier."
With the expansion and optimization of network coverage, the popularity of smart phones has accelerated. Market research company ABIResearch predicts that by 2017, cheap smartphones will account for approximately 42% of the global smartphone shipments, up from approximately 14% in 2010. Chip companies such as Qualcomm, Intel, and MediaTek have all targeted the low-price handset market, which is generally priced below US$200, and hope to obtain huge sales through this rapidly growing field. Especially in emerging markets, such as China, 3G is on the eve of scale growth, bringing in an explosion of thousands of smart phones. Analysys International said that nearly two-thirds of smartphones in China belong to low-end smartphones.
In addition, global operators are scrambling to deploy LTE networks, and LTE terminals have become new flavors in the market. Digitimes predicts that total LTE smartphone shipments in 2016 will reach 586 million units, which will be more than nine times the estimated 64 million LTE smartphone shipments in 2012. It looks like 2013 will be a real turning point in the growth of LTE smartphones and it is expected that shipments will increase by a factor of two to 188 million units next year. The vision for the new company formed by Fujitsu and others is to develop products for LTE networks and next-generation network technologies.
Competition intensifies chip market changes As the new army enters the war situation, the mobile chip market competition has stepped into a stage of intense competition, causing chip prices to continue to fall and price wars to escalate. Fujitsu's original intention of establishing a mobile phone chip company is very good, but it also faces many challenges.
First of all, Qualcomm is a large mountain in front of Hengping. As a leader in the industry, Qualcomm's strategy has always been to develop high-performance, low-power chipsets for mobile phones and tablet PCs. It has a 2-3 year advantage in chip integration. Today, Qualcomm, which has always been on the high road, has also begun to engage in low-end markets. With its advantages in technology and scale, it has a competitive edge in high-end, low-end and end-market markets.
Secondly, the constantly changing chip manufacturers bring more variables to the mobile chip market. In the PC market, Intel has begun to shift to the mobile sector; the shipment of MediaTek chips in the Chinese market has been ultra-high-pass, and its power can not be ignored; Samsung recently announced the world's fastest embedded NAND chip, and said it will use For the next generation of mobile products...
For the just-established ANT, it is important to keep pace with the industry and quickly establish industrial partners to achieve economies of scale. Although positioning itself in Japan, in a high-growth emerging market, ANT may be able to find a way to break through the gaps in the same market with comprehensive strength.
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