Components | January 25, 2012

Qualcomm holds 30% of mobile device semi market

Editor: Staff Editor

M&A activity shakes up mobile device semiconductor market, but Qualcomm still holds 30% of the over USD 25 billion market.

2011 marked a big year for mergers and acquisitions (M&A) in the mobile device semiconductor market. From Intel’s acquisition of Infineon Technologies AG Wireless Solutions to NVIDIA’s purchase of Icera, the mobile device semiconductor market has seen a lot of moving and shaking. Despite all the M&A activity, however, the market is still projected to remain relatively flat, with only 5.6% CAGR from 2010 to 2016, pushing the market from $25 billion in 2010 to $35 billion in 2016. Intel’s purchase of Infineon’s wireless semiconductor business was a smart move for the company, as Intel previously did not hold any significant share in the handset market, despite attempts to break into it with its processors. Its purchase of Infineon’s wireless business, while giving Intel an instant foothold in the market, also appears to be bearing fruit elsewhere. Intel’s newfound market share in other areas of the handset IC market assisted in Intel’s recent announcement that Motorola and Lenovo will release smartphones based on Intel processors in 2012. “Most of the major suppliers are spending considerable resources on improving their platform solution capabilities,” says Peter Cooney, practice director, semiconductors. “Through acquisitions and internal product developments, suppliers such as ST-Ericsson, Broadcom, NVIDIA, Marvell, and Renesas are transitioning to a platform supplier model. Although Qualcomm currently leads the way, many other suppliers are increasing their capabilities and the competition between suppliers will increase significantly over the coming years.” Although Qualcomm currently rests easy as the most successful and largest supplier of mobile device semiconductors (holding almost 30% of the total market share), the company has partaken in the M&A trend as well, acquiring Atheros Communications to form the subsidiary Qualcomm Atheros, strengthening its wireless connectivity portfolio.

The distributor of electronic components and semiconductors has appointed Renato Souza to the position of Vice President of Business Development. Renato previously served as Vice President, Latin America of Smith since 2017.

The German company believes 5G will be a key building block of digitalization and connectivity in manufacturing and logistics. And for that reason, Bosch is now starting compatibility tests and channel measurements for setting up a 5G network in its wafer fab in Reutlingen.

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Global electronics news provider and event organiser Evertiq has been donating computing power to help research effort for a Covid-19 vaccine.

The supplier of wafer cleaning technologies for advanced semiconductor devices, has received purchase orders and final stage bidding activities for a total of USD 36 million from two new China-based customers that manufacture analog and power IC devices.

Semiconductor equipment manufacturer ClassOne Technology announces the sale of its Solstice GoldPro electroplating system to an unnamed developer of microLED technology for advanced applications.

From January through early March business performance was in line with expectations, but clear impacts of the corona pandemic and increasing uncertainty within the automotive industry became apparent from late March on.

Smiths Detection has completed the acquisition of PathSensors, a bio-technology solutions and environmental-testing company, based in Baltimore, MD, USA.

Saab has divested the Dutch-based company QPS (Quality Positioning Services), a provider of hydrographic software solutions within the global maritime industry. The decision is in line with Saab’s strategy to optimise its product portfolio and increase focus on five core areas.

Advancements in 5G and electric vehicle technologies are bringing the mounting demands of power semiconductor. GlobalWafers is teaming up with the National Chiao Tung University (NCTU) to develop the third generation semiconductor material.

Taiwanese NAND Flash controller IC and storage solutions provider, Phison Electronics, broke ground on a new R&D center and inventory management in Guangyuan Science Park in Zhunan township, back in late march.

“Infineon has so far coped well with the challenging situation caused by the coronavirus pandemic. As a company, we reacted quickly to the new situation and established a framework that has enabled us to stabilize our business,” says CEO Dr. Reinhard Ploss.