Small and medium wireless chip manufacturers are under great pressure, and the establishment of the ST-EMP joint venture will set off a new wave of mergers
STMicroelectronics and Ericsson recently announced the merger of ST-NXP Wireless and EMP (Ericsson Mobile Platforms, Ericsson Mobile Platforms), each of which has a 50% share in the joint venture. The newly established joint venture company will occupy 19% of the core mobile phone chip market. Market analysis company Strategy AnalyTIcs believes that this will cause a lot of pressure on Freescale, Broadcom, Infineon and other suppliers with a small customer base and relatively small market share.
"There are a series of 3G platforms as equipment, and the newly established STMicro & EMP joint venture is ready to compete with industry leaders Qualcomm and TI. After EMP joins, the new company said it will take the line of strong products, which is intensive in R & D. And the survival of the rapidly growing cellular chip market is important, "Strategy AnalyTIcs analyst Sravan Kundojjala said in a statement.
Stuart Robinson, head of the mobile phone parts service department at Strategy AnalyTIcs, further added, "The newly established joint venture of STMicro and EMP has annual revenue of US $ 3.6 billion (equivalent to 19% market share), second only to Qualcomm (29%) and Texas Instruments 28%), ranking third in the cellular semiconductor industry. The establishment of the joint venture of STMicro and EMP will further force other small chip suppliers or mergers to become stronger to occupy more market share, or to survive in the gap, aim Niche market. "
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