InterDigital Inc (IDCC)

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Spreadtrum Rallies; Seen Picking Up 2G Biz After INTC/IFX Deal
Posted by Eric Savitz
Spreadtrum (SPRD), a Shanghai-based producer of baseband chips for mobile phones, is trading sharply higher in anticipation of a potential boost to business from the Intel (INTC) acquisition of Infineon’s (IFX) wireless business.

HSBC analyst Yolanda Wang asserted in a research note today that Intel isn’t likely to be focused on Infineon’s existing 2G handset customers - and that the result could be a business opportunity for other players in the segment - including Spreadtrum and MediaTek - to win business Infineon now holds with key players like Nokia, LG and Samsung. She says there could be as many as 100 million units of 2G baseband chips at play.

SPRD today has spiked $1.48, or 14.6%, to $11.63.