Technology industry is the most popular topic recently, is Chinese investment issues of semiconductor, which like a purple light want to talk about cooperation to mediatek (here there are many media is defined as the investment mediatek), and the second and the third largest purple light to buy into domestic testing factory.
One of the most contentious, is the recent one school of scholars opposed to Chinese investment in IC design news, news and discussion, the other crazy spread on the Internet. Maybe we could start thinking about a topic calmly? We are going to discuss today, is the Chinese in Taiwan IC design? Or a stake in mediatek, the purple lights? Argumentation and proposition are different, the Angle of cut way, how many there will be differences. In this way, we'll become a shareholder with purple light mediatek for proposition, a simple discussion whether mediatek really need purple light investment or other forms of cooperation?
In industry or in the media circle, we are all very clear mediatek will qualcomm as the top competitors, especially in the smartphone and tablet on the market more competitive, let alone the largest smartphone market - China, in recent years between the two sides met more people issues of concern. According to the statistics of IC Insights, qualcomm from 2015 Q1 to Q3 revenue figures are divided into: 4434, 3853 and $3.429 billion, while the number of mediatek for: $1506, 1528 and 1528.
Qualcomm's revenue Numbers appear obvious drop, mediatek is have a lot of growth, but there is still a big difference between both sides. Qualcomm's quarterly revenue is about twice the mediatek, even more so.
In smart phones on the battlefield, excluding apple, samsung in the use of application processor, in addition to their own development, will right amount ground USES qualcomm solution. In the third to the first ten mobile phone industry's flagship model, also is almost invariably use qualcomm application processor. Here again quoting the number of the Boston consulting group, from 2014 to 2019, smartphone ASP (average selling prices) will decline by 4%, but as the world's largest silicon ipr supplier ARM has also made it clear that although ASP in decline, but the flagship or loosening of high-end mobile phones and didn't see the price.
The mediatek's competitors are described briefly and the overall market situation, the problems faced by mediatek is that high-order cell phone still cannot be reached its supply chain, in the middle and lower order market also must face qualcomm processor industry competition with China, not to mention huawei's haisi science and technology also launched its own processor to meet the needs of huawei mobile phone design. Plus the smartphone ASP are falling. And Gartner recently for the global smartphone market share ranking (third quarter 2015), excluding samsung and apple, the top three divided into huawei, lenovo and millet, combined market share of 17.5%.
Since the past mediatek shanzhai era, laying a fairly deep foundation in China. After China started acting on semiconductor localization policy, purple light to the mediatek propaganda, behind also has the Chinese government in the capital, whether a shareholder or other forms of cooperation, coupled with the many factors such as market situation, we use mediatek is standing on the "passive" or even "beat" to describe, also too.
"Even if, mediatek's technical strength above spreadtrum and RuiDi."
Is technology, no market, finally a dead end, that year's elpida, perhaps is a good example, you can tell, mediatek did face quite a serious situation, perhaps this is Mr Tsai want to talk about cooperation may nod with purple light, considerations to market problems, mediatek there is no other option. If Mr Tsai rebuffed, purple light do not hesitate to use behind the huge money take the bloody price war, forcing mediatek withdraw from the Chinese market, it is not not impossible, after all, the development of smart phones but a few years, has already entered the mature period, purple light was (China government?? Ce), geographical (broad domestic market) and human (with spreadtrum RuiDi), Mr Tsai's release of goodwill, how much for mediatek left a posterior approach.
In the short term, mediatek forced to cooperate with purple light, is the inevitable direction, unless mediatek plans to go to war with purple light positive, if mediatek no cash in hand, so our government or people willing to lend money to mediatek? If the consideration shares or rights, Mr Tsai can indeed think shares increase in hand, to ensure the right would not be dominated by the purple light. But for Mr Tsai, if hand holding shares is too high, whether there is also a risk, it is also one of he must think I'm afraid.
In the long term, due to the global standard is in 2017 to roughly 5 g, mediatek is there a way to in the midst of this, key technology and ipr, and obtain the air, so that with the mainland market for commercial negotiations with the attitude of equal. Don't forget, high generalist announced chips with ipr department did not intend to going to split, it means the wireless IP does have a certain appeal. If mediatek can emulate qualcomm the right strategy, perhaps mediatek can take advantage in the Chinese market space.
