The merging wave of wireless mobile field promotes further integration of IC industry

The merging wave of wireless mobile field promotes further integration of IC industry

The integration of the semiconductor industry is far from over! But not necessarily in the way most people intend to do it. The joint venture between the Italian-French semiconductor and the Ericsson Mobile Platform Division (EMP) program may be another way out of semiconductor development.

Unlike the consolidation and hostile takeovers that have brought strong shocks to the company in the past, the case is done in a very gentlemanly way. First of all, en-wise withdrew from the mobile handset chip business, and Ericsson was involved in a strong alliance with St, and formed a stronger joint venture than any independent company.

The powerful coalition has created a powerful first group to counter the biggest competitor in the wireless chip sector. Separately, EMP, though technologically advanced, lacks market power. St is just the opposite.

In May this year, Deutsche Bank's market researchers divided mobile chip suppliers into four categories. St Despite having a high market share, but only in the fourth category, that is, the worst category. Although the market share is relatively small, the EMP is listed as the first category of provider. With the planned joint venture, St's wireless service will have the opportunity to reach the first category.

The move proves that St has not only a long-term strategy but also the ability to implement the strategy. This dramatic cooperation-first with the unaffected scenes of the en-wise, then Ericsson, and Grace--is an admirable secret outreach effort, he reported. Another view is that the unnamed joint venture is the best evidence of an unwritten conclusion of the semiconductor industry – companies that cannot bring enough energy to the size of an enterprise often cannot go very far. The argument may be too absolute, but the competitive mass market for wireless mobile is really a language.

The question is who can best benefit from the joint venture.

According to its parent company, cooperation has given St company the opportunity to expand its market position to the next generation of technology. EMP obtains a complete and consistent hardware platform as the foundation for future applications and services. The partnership has a pivotal position for Ericsson, but St seems to be the main winner.

For St, the stakes are much greater than the smaller but innovative EMP. In fact, although the size of two parent companies is different from their wireless mobile business, the equity of the joint venture is evenly distributed, and Ericsson even has the power to appoint the chairman of the board. It also shows how important Ericsson's technology is to the French-Italian chipmaker.