INTEL90 billion shares in the purple light how five years beyond MediaTek?

The rumor that Intel shares the show is finally confirmed.

September 26 Noon 12:00,intel and Purple Light Group issued a statement: "Intel will be the purple light under the holding of communications and RDA Microelectronics of the holding company to invest 9 billion yuan (about 1.5 billion U.S. dollars), and get a 20% stake." "The investment is expected to be completed by 2015.

According to the terms of the agreement, Intel technical cooperation, strategic layout and other key partners are the exhibition, RDA is mainly involved in product sales work. The exhibition will jointly develop and sell a series of Intel architecture based system chips, and plans to launch the first batch of Intel architecture based system chip products in the second half of next year.

Wenjun, chief analyst at Isuppli Semiconductor, told reporters that "The violet light has great impetus for the development of Intel's technology architecture, the development of communications products, the optimization of chip generation and the stability of the Chinese market, and the violet Light can be licensed by Intel technology, in architecture selection, technology development, Process development and marketing can also reap the support of international giants, which is of great significance to their internationalization. ”

"Intel is going back to the mobile chip market, and the exhibition is challenging MediaTek." One insider who approached the partnership told reporters: "The integration of China's integrated circuit industry has risen to the international level." ”

Thanks to more than 120 billion "National Integrated circuit Industry Fund", the most integrated circuit support program in China's history, China's IC industry is rapidly integrated and reborn. IC industry celebrities old to evaluate this cooperation: "The integration of the integrated circuit industry is the international trend, the mainland will become the" East "core. ”

"Chip national team"

At the end of 2012, digital integrated circuit industry leaders recommended to the State to support the integrated circuit industry, and received the attention of the State. Subsequently, the competent department set up a working group to start the integrated circuit industry research, and conveyed to the industrial chain "the state will support the integrated circuit industry" policy signal.

In the second half of 2013, China's integrated circuit industry chain appeared a series of acquisitions, shares, large-scale industrial integration started.

Among them, the most prestigious is the Purple Light group to buy the largest communications chip design company, "Snake Swallow Elephant." At that time, the purple Light group was supported by a number of competent departments and financial institutions, and quickly completed all the approvals and the total amount of tens of billions of large-scale financing, eventually to 1.78 billion U.S. dollars to acquire the 100% stake. Then, in July 2014, the violet Light bought a 907 million-dollar list of RDA, second only to the exhibition.

At the same time, Datang Telecom is also in the integration of core technology, Datang Microelectronics, SMIC, to create a set design, manufacturing integrated circuit platform; the world's top 500 companies in China Electronic Information Industry Group also acquired, integrated a series of chip companies, and launched a platform strategy.

But it should be pointed out that the integration of the exhibition, RDA's Violet Group has become China's largest chip design company, is considered the "Chip national team." Ministry of Software and integrated Circuit Promotion Center Integrated Circuit Department deputy director Zhou Meng told reporters: "Integrated circuit industry fund design fund will be the main investment to the exhibition, manufacturing funds to the core international." ”

September 25, 2014 Beijing International Communication Exhibition, the staff told reporters: "Design is the leading industry, we 1 U.S. dollars output, can be achieved in the consumer market 50 times times magnified." 2013, the 6.4 billion yuan revenue led to 300 billion yuan in the local industrial chain value, but also led the industrial chain upstream and downstream of thousands of enterprises to achieve value, provide employment opportunities. ”

"5 years Beyond MediaTek"

However, the Ministry also gave priority to support the "national team" issued a task: Within 5 years, sales revenue reached 10 billion U.S. dollars. In 2013, the total revenue of the exhibition of RDA was about $1.5 billion trillion, which is far from the goal.

And competitors are particularly strong. 2013, Qualcomm income of 17.2 billion U.S. dollars, MediaTek income of 4.59 billion U.S. dollars. Qualcomm, MediaTek is currently the world's most powerful two communications chip design companies, the two have successively put Bo Tong, Japan, Switzerland, Ericsson and other international chip giants extrusion communications chip market.

Earlier, Violet Group chairman Zhao Wei in the media interview said: "Violet hope to become a world-class chip giant, with five years or so time over MediaTek, become the world, the industry ranked second, shipments first IC design company." ”

2013, the exhibition of smart phone baseband chip shipments of 120 million, the annual income of 6.44 billion yuan. Its main source of income for the domestic 2G, 3G market. 2013, domestic TD-SCDMA mobile phone sales reached 120 million, of which 60% from the exhibition, at the same time, the exhibition of GSM market share of 24%.

It should be noted, however, that more and more operators are planning to shut down GSM services, and AT&T and Sprint are planning to shut down the GSM network in 2016, with Finland's three telecoms operators, TeliaSonera, Elisa and DNA company, agreeing to abandon the GSM network, Mobile also stops the new GSM and transfers its business center from TD-SCDMA to LTE. The important market of the exhibition is Fade atrophy, although the exhibition has been expanding its wcmda market overseas, but it is not enough to support the "5 years to achieve 10 billion dollars" task.

Moreover, there is no mainstream 4G mobile phone chip, its 28nm 4G chip will be introduced in the fourth quarter of this year, after Qualcomm 2 years, MediaTek 1 years, Qualcomm has already monopolized the 4G chip high-end market, while the low-end market is most of MediaTek's income in the bag.

For the exhibition, the international market is the only way to go beyond MediaTek. Partnering with Intel will be one of the most important moves in the international strategy.

"The exhibition will enjoy Intel's high-end manufacturing process, ahead of TSMC's generation." And I guess Intel will give up the phone chip business sooner or later, and moving to the exhibition is the right choice, after all, Intel has stakes. Old Yao told reporters, Intel in 2012 back to mobile chip battlefield, but more focused on the tablet computer market, two years, Intel has developed more than 200 flat partners, mobile phone chip partners only Lenovo. But the exhibition has including Samsung, Huawei, ZTE, Millet, including more than 300 mobile phone partners, will become the most powerful mobile phone chip business carrier.

Old Yao told the Reporter: "3-4 years later, the exhibition will be able to compete head-on with MediaTek." Now, Taiwan Province IC industry is worried. ”

MediaTek,

MediaTek's share price has continued to fall since Intel's stake in the news was revealed. September 25, the company's share price closed at 95.74 U.S. dollars, the lowest price since January.

But MediaTek is already starting to lay out for future competition.

June 2014, Shanghai launched the "Venture capital Investment Guidance Fund (Shanghai Integrated Circuit Design Acquisition Fund)", the fund mainly supports the integrated circuit design industry, scale 3 billion.

"The fund's tender work has been basically completed and the results have not been officially announced." However, there are currently only two consortium tenders. MediaTek is related to two consortia. "Insiders have told reporters that the two consortia are Pudonko and Walden International Union, Wu Yue Investment Company and MediaTek Consortium," the two large consortia of funds, most from MediaTek. ”

Previously, MediaTek has acquired the Suzhou Ao Tong, a stake in the Shenzhen top, the former has TD-SCDMA accumulation, the latter engaged in touch chip design. In addition, MediaTek completed the acquisition of Chip design company MStar, which earned $1.13 billion for 2013 years.

A positive counterweight to MediaTek is a "dream" for the current exhibition. Old Yao said: "In the Future, the exhibition also needs a series of mergers and acquisitions at home and abroad, the introduction of talent, to achieve rapid growth." ”

From this point of view, no enterprise than the exhibition needs of "National Integrated circuit Industry Fund" the rapid landing. A source told reporters: September 24 afternoon, the state officially appointed the Ministry of Industry and Information Division director Ding WENWU for 120 billion Integrated circuit industrial investment fund in charge, "the team has been formed, next month, the fund company landed." ”