Qualcomm and other manufacturers too strong Ericsson announced the abandonment of chip business

Ericsson, the world's largest telecoms equipment maker, announced a halt to the development of its chip (modem) because of its long loss decision to exit the chip market and cut 1000 people, transferring its resources to the wireless communications network, according to Taiwan Media September 22 Ericsson's chip business lost $63.7 million in the second quarter of the year. Figure August 2013 after the dissolution of Ericsson's joint venture with the Italian-French semiconductor, Ericsson's chip division will focus on the LTE ultra-thin chip, when Ericsson chip business executives think that about 1 billion smartphones each year need LTE chips, the market is large enough to allow many manufacturers to coexist. August 2014 Ericsson M7450 Chip officially launched, ultra-thin chip market size is not up to Ericsson's expectations, and as the market competition intensifies, chip prices continue to lower, technology innovation accelerated also increased the cost of research and development. At present, the mobile device chip market is in the oligopoly, Qualcomm, MediaTek, exhibition and other manufacturers occupy the open market, the closed system is Samsung, Apple, Heiss, etc., Ericsson is difficult to break through these companies. According to current chip market price trend, Ericsson chip business 2014 sales need to reach at least 45 million to turn the profit. After the Texas Instruments, Bo Tong companies have announced the abandonment of mobile communications chip business, Ericsson in the future of the chip business evaluation, to save the company costs, decided to shut down the chip business, transfer resources to wireless communications business. With about 1500 employees in the Ericsson chip business, about 1000 people will face the possibility of being laid off.