Intel, the chip giant who is frustrated with the mobile market, is launching a "small partner" offensive.
On April 13th, Chinese local chip company Ruixinwei and Intel held a mass production release for the first chip in cooperation in Hong Kong. Ruixinwei is a major chip supplier in the domestic tablet market and is currently seeking to cut into the mobile phone chip market. Chen Feng, senior vice president of the company, said in an interview with the 21st Century Business Herald that Intel’s strength in the baseband chip will help Ruixinwei to complete the extension of the product line as soon as possible.
Also assisted by Intel is another well-known local chip company Spreadtrum. In September last year, Intel announced that it would invest 9 billion yuan in Spreadtrum. "Intel's money will come in this month." Li Liyou, chairman and CEO of Spreadtrum, told reporters. Under the financial support of Intel, CDB, and the National Integrated Circuit Fund, Spreadtrum has just released two new chips and is seeking a "low price, high quality" competition.
The positive attack of two Intel "small partners" has made the price of the chip market wary.
Local chip companies borrow Intel
In the white-plate market, Rockchip is the top three chip supplier along with Intel and MediaTek. However, the tablet market experienced a significant slowdown in 2014 after experiencing explosive growth from 2009-2013. As a result, Ruixin Wei has entered the mobile phone market, which is already fiercely competitive.
“Ruixinwei enters the mobile communication market and needs baseband technology.†Chen Feng told reporters that he chose to cooperate with Intel because it is very advanced in baseband technology, and has a lot of intellectual property reserves and advanced processes, and the product roadmap is also Not bad.
For Intel, due to the slow transition to the mobile market, in the past one or two years, despite investing a lot of resources, it is difficult to see the Qualcomm and MediaTek on the mobile phone chip. As a result, in addition to its own hard attack, Intel has also begun to seek to cultivate partners in the low-end market.
Rockchip and Intel announced cooperation in May 2014, and the first cooperative chip SoFIA 3G-R is scheduled to be mass-produced. The whole process is less than a year, which is called rapid. Ruixin Wei Chenfeng interprets this as the promotion and execution of excellence and breaks the barriers between different cultures and levels.
The first product of the cooperation between the two parties is aimed at the mobile phone/callable tablet and the card entry "entry level 3G market". Chen Feng believes that although the proportion of 4G products in China is already very high, 3G still has huge market space in overseas markets.
On April 13, Chen Feng told reporters that SoFIA 3G-R had a target shipment of 10 million units during the year. Ruixinwei's marketing strategy is to bid for the standard and to scream "double performance, the same price."
Also in the 3G market, it also includes Spreadtrum. Spreadtrum recently released a quad-core popular 3G chip, the SC7731, and announced that it would use the "four-core two-core" strategy to grab MediaTek.
"Why is MediaTek's financial report so beautiful?" A insider of Spreadtrum told reporters that the key is that 3G, Qualcomm slowly gave up this market, and Chinese manufacturers with more cost-effective advantages will need time to keep up. "In the past MediaTek is almost uncompetitive in this field."
In an interview with reporters, Spreadtrum Chairman and CEO Li Liyou denied the market rumors that Spreadtrum 3G chip is 40% lower than MediaTek's price reduction, but it is very positive that the advantage of Spreadtrum chip relative to competing products is that it is extremely high in the low-end market. Cost-effective, we must fight a "low price, high quality" war.
"Exhibition's operating costs are lower than the opponents, and the demand for gross profit is also lower than the opponent." Li Liyou said.
In fact, in the 2G era, Spreadtrum made it extremely difficult for MediaTek to suffer.
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