Qualcomm Inc (QCOM)

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Semiconductor Makers Race In Developing Chips For Portable Broadcast Receivers
Tuesday, November 23, 2004
By Kim Kyu-tae & Sung Ho-chul

http://english.etnews.co.kr/news/detail_top.html?id=200411230006&art_grad=9

In an attempt to take leadership in the looming market for chips for portable digital broadcast receivers, leading semiconductor makers such as Samsung Electronics, LG Electronics, Texas Instruments and Qualcomm are racing in development of chips based on different specifications.

While Samsung Electronics and LG Electronics developed a chip for receivers of terrestrial digital multimedia broadcast (DMB) in June and September, respectively, Frontier Silicon, a Europe-based semiconductor maker, plans to introduce a similar chip next year targeting the market in Korea.

In European portable digital TV specification DVB-H camp, TI unveiled last month a plan for developing a chip for receivers, while Sony and Motorola are reportedly developing similar chips. "The company will develop a DVB-H-based receiver chip in conjunction with Nokia and will roll out its samples next year," said Rich Templeton, CEO of TI.

Qualcomm, which supports FLO specification, decided to roll out a DMB receiver chip in the fourth quarter of next year. "The DMB receiver chip is designed to be compatible with its communication baseband chips with higher capacities than 'MSM6500', and it is power-efficient even in high frequencies," said Oh Jae-ha, executive director at Qualcomm Korea.

Fast moves of these semiconductor makers are aimed at taking an initiative in the world market by demonstrating superiority in their respective technologies before any one of them is settled as de facto standard.

Samsung Electronics and LG Electronics are seeking to branch out into world receiver chip market based on their foundation in the domestic terrestrial and satellite DMB market, while TI and Qualcomm are attempting to expand to world market based on their strongholds in European HVB-H and U.S. FLO market, respectively.

Industry observers predict that chip makers will be split into two contrasting groups, a winner group and a loser one, in 2006. This is because terrestrial and satellite DMB service will be commercialized in the first half of 2005, DVB-H service in the second half of 2005, and FLO service will be launched in 2006.

"A consecutive unveiling of sample chips and development plans means that chip makers are girding for commercial portable digital broadcasting service, triggering technology competitions," said executive director Oh.