Selling TD business from Adi to MTK to see the semiconductor industry moving eastward

Before coming to the United States to participate in ADI Analyst Day, Lao Yao would like to know why Adi sold TD business to MediaTek, after all, although it was only a step ahead, Adi was clearly a lot wiser than Freescale company.

When Adi sold the TD baseband business, many speculated that analog devices was not optimistic about the future of TD SCDMA, but when he asked this question to Vice President Analog devices John Hussey, he got a completely different answer, first John introduced the reason why Adi sold TD business in 2007, Because I saw it in the cell phone baseband business area with the gradual popularization of mobile phones, the demand for customized development of chip manufacturers is increasing, while for the gross margin has been maintained at about 60% of analog devices, mobile phone baseband business gross margin gradually fell also makes Adi feel very much pressure, The two should be the main reason why Adi sells TD business.

ADI sold TD business only a year earlier than Freescale, but to avoid Freescale mobile phone baseband business so far no one took over the embarrassment, the overall sale of no one to take over, can only be developed a WCDMA chip low-priced to Beijing core, Freescale did not see this trend as soon as possible , an important reason is that Freescale has Motorola this big customer backing, in fact not only Freescale, including Ti, St mobile phone baseband business This two years is also quite hot, struggling.

Only two or three years before and after the rise of the mobile phone business from MediaTek and Spreadtrum's two companies, including Adi and Freecale, has clearly reflected the trend of the semiconductor business moving eastward, as evidenced by the rise of Taiwan and even the mainland semiconductor industry in recent years, But in the mobile phone business is more obvious, MediaTek in the mobile phone business also has a close to 60% of gross margin, and Taiwan these years in wafer manufacturing, packaging testing the rise of significantly reduced costs related, and MediaTek turnkey business model of the launch of the industry to adapt to the demand for the East shift, Ten years ago, mobile phone companies to develop mobile phones, not only to invest millions of dollars to buy solutions, but also to invest a large number of engineers to develop, now because of research and development, more development has been completed by the chip company, which is the European and American chip manufacturers can not bear, Adi sales and MediaTek, Spreadtrum's rise is the semiconductor industry the direct result of

The east shift of the semiconductor industry is not the European and American semiconductor manufacturers to abandon the semiconductor business, but the European and American manufacturers to pursue higher margin business areas, to abandon the low interest rate of the product field, although Adi abandoned the mobile phone business, with its own in the RF field of technical advantages, communication base station business from 2003 to 2009 increased by more than one, With the gradual introduction of LTE, Adi believes that due to the wider spectrum involved, the technology requirements of the base station are higher, and its technical advantages will be more easily reflected. The east shift is characterized by the transfer of certain low-margin products to Asia.

In fact, this phenomenon in the semiconductor industry and film production has some similarities, like Zhang Yimou's film with visual effects, Feng Xiaogang's film with its unique language funny to attract fans, but the current conditions are not possible to shoot the avatar of the commercial film, the cause of the technological gap between the two sides of the positioning, Capital is not the main obstacle, the development of the mainland semiconductor industry must be combined with its own strength, only by virtue of the capital advantage or the introduction of several returnees hope that the leap-forward development is undoubtedly the Arabian Sea.

In a conversation with analog devices marketing and marketing vice President Vicent, Lao Yao is very concerned about the share of Adi's business in mainland China, and is very concerned about this data, although it is clear that Adi's analog business has been the leader of the world, but I do not know Adi in the medical, Industry revenues, such as instrumentation and even automation, account for almost half of its revenue, and the share of Adi's mainland business directly reflects the level and scale of the continent in these areas, but the data given by Vicent is only half as much as Asia's share of Adi's business, China's two-year growth in the number of design-in is very rapid, reluctant to give a specific share of the mainland, the rise of the mainland microelectronics industry in recent years, and the rise of the mainland design house is closely related, but to the old know, including instrumentation, medical equipment is still more imported from Adi The sharp increase in the number of design-in, indicating that the mainland in the development of equipment is already on the brink, I believe that the industry will not be limited to the east of semiconductors, will also include the application of semiconductors in the industry, in this respect, ADI sales of mobile phone business to the company's impact is not big, on the contrary with the mainland's technological strength gradually Will be a powerful catalyst for Adi's business development in the mainland.

If 30 years of the mainland with its human resources cost to create the world's manufacturing capital of the reputation, then as the semiconductor industry eastward shift along with the mainland's technological strength and gradually improve the cost of human resources, the mainland industrial policy should be tilted to high technology, take over the industry eastward shift baton, to promote the transformation of manufacturing power to create a powerful country. (author, Lao Yao)

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