Intel bets China made, 1.5 billion dollar strategic investment chip manufacturers exhibition

Absrtact: The news has finally settled, Intel announced to the Tsinghua Violet's exhibition Communications and RDA Microelectronics strategy investment of 1.5 billion U.S. dollars in exchange for 20% of the shares of Tsinghua Violet. What role will Intel play in the future of the development of the exhibition and RDA

The news has finally settled, Intel announced to the Tsinghua Violet's exhibition Communications and RDA Microelectronics strategy to invest 1.5 billion of dollars in exchange for 20% of the shares of Tsinghua Violet.

The future role of Intel in the development of the exhibition and RDA is unclear, as the two sides will sign a series of agreements to jointly develop Intel architecture based chip and communication solutions. The deal is expected to be completed in 2015 and requires approval by the executive branch. Trading on the day before the announcement of a trading day, Tsinghua Violet stock trading.

The company, which is listed on Nasdaq by the end of last year, expects sales to exceed 7 billion yuan this year. In December 2013, the University of Tsinghua Violet completed the privatization of the former at $31 per share and a total of 1.7 billion dollars. The Tsinghua Violet is a wholly owned subsidiary of Tsinghua Holding, a State enterprise.

The exhibition is China's leading mobile set of SOC and baseband manufacturer, Strategy Analytics statistics:

The 2014 Q1 accounted for 5% of global baseband chip market share, after Qualcomm and MTK, surpassing Intel. The exhibition in China occupies the TD-SCDMA handset baseband chip 60% market share, in the domestic tablet computer SOC Market also has the obvious superiority, simultaneously also is Huawei Heiss outside the most important Chinese handset soc manufacturer.

But in the 4G era, the show's baseband chips did not catch up with Qualcomm and MTK, and their planned 28nm five-frequency LTE chips could be put into production later this year. Infineon, the Intel-bought baseband chip maker, also failed to achieve the expected results. However, according to the report of the set of micro-nets, Apple may use Infineon's products in 2015 to replace some Qualcomm products.

For this acquisition, there are two main interpretations of the current market, one of which is Intel's avoidance of a high pass, the use of capital injections into domestic manufacturers and the provision of X86 ISA authorization to avoid possible antitrust investigations. Another is the current share of the highest in the domestic SOC and baseband manufacturers with Qualcomm and MTK competition. Both interpretations do not revolve around the most powerful manufacturers in mobile baseband and SOC chips.

Qualcomm in the domestic in addition to face the investigation of antitrust cases, with Gotongki with Chip star products IPHONE6/6 plus also delayed access to the Ministry of the network license can not be listed. The State Council issued the "National Integrated circuit Industry Development Program" in June this year:

to 2020, mobile intelligent terminals, network communications, cloud computing, IoT, large data and other key areas of integrated circuit design technology to achieve the international leading level, the initial formation of industrial ecosystems. 16/14NM manufacturing process to achieve scale production. By 2030, the main link of integrated circuit industry reached the international advanced level, a group of enterprises entered the international first echelon to achieve leapfrog development. September, the amount of up to 150 billion yuan of integrated circuit industry fund.

In a statement, Intel CEO Division expressed its emphasis on the Chinese market (a deep understanding of the State Department's document Spirit), "To work with the exhibition for China and the global industrial manufacturing chip and communications solutions." Since he took office, Intel and Shenzhen Tablet manufacturers have established a closer partnership. This February, Intel set up an innovative hardware research and development center in Shenzhen. The new research and Development Center in Shenzhen was established in Shenzhen in September this year.

Qualcomm may also have grasped the spirit of the document, and they have started working with SMIC to produce a 28nm wafer, and have set up 150 million dollar seed funds for Chinese start-ups. But this is not the same as the antitrust case.