MediaTek wins Qualcomm patent agreement, former "Shanzhai Wang" is expected to OEM high-end brands

MediaTek wins Qualcomm patent agreement, former "Shanzhai Wang" is expected to OEM high-end brands

Perhaps, from now on, the industry should no longer call MediaTek a spokesperson for cottage electronic products.

On November 20, MediaTek and Qualcomm, the world's leading wireless technology, product and service manufacturer, announced that they had reached a cross-licensing agreement on integrated circuit products for their individually owned patent pools (including CDMA and WCDMA core patents). The agreement is another hand-in-hand between MediaTek and international top brands. This shows that in the future, MediaTek will be able to sell mobile phone chips that comply with the mainstream 3G technology WCDMA standard, and its commercial position will therefore rapidly increase.

For the newly reached agreement, Qualcomm CEO Paul Jacobs also expressed joy, saying: "Our technology licensing has enabled many new manufacturers to join the competition in the 3G market and actively design innovative We are very proud of this wireless device. "At present, Qualcomm owns the most CDMA and WCDMA communication technology patents in the world, and therefore receives billions of dollars in revenue every year.

"IT Times Weekly" learned from MediaTek that in this agreement, MediaTek customers have not obtained any rights to Qualcomm's patents. They need to obtain additional licenses from Qualcomm to use these patents. Similarly, Qualcomm customers also need to obtain additional licenses from MediaTek before they can obtain the rights to MediaTek patents.

The trend of testing 3G

For a long time, MediaTek has been extremely active in the low-end chip market. However, as the competition of major international chip manufacturers has intensified and product prices have been lowered, MediaTek's low price advantage has gradually weakened.

Earlier, the industry expected that MediaTek Chairman Cai Mingjie would not be too happy next year because he was hit by both sides of Spreadtrum Communications and Mstar from Taiwan in the 2G and 3G (mainly TD mobile phone) markets. And, although MediaTek ’s monthly shipments have repeatedly hit records this year, due to shrinking demand for the 2G market and the fact that it has not yet opened the market in the 3G field, the industry expects that it may be taken away by Spreadtrum Communications by more than 15% of the market.

Market research organization StrategyAnalyTIcs pointed out that MediaTek has a 20% share in the mobile phone chip market, and its profit is second only to Qualcomm. Although the low-cost structure and strong software development capabilities enable it to compete with other chip manufacturers, the lack of high-end chip products has always been Restrict its growth.

"Some of the challenges facing MediaTek need to be overcome, including WCDMA, high-end multimedia and application processor product development, and cooperation with first-line mobile phone manufacturers to seek more growth points." StrategyAnalyTIcs mobile device technology practice service director Stuart Robinson (Stuart Robinson) ) Introduction.

Today, the CDMA and WCDMA patent agreements reached by MediaTek and Qualcomm allow MediaTek to sell mobile phone chips that meet the mainstream 3G technology WCDMA standard, which plays a key role in MediaTek's expansion of the high-end chip market.

The two parties did not disclose other specific matters in the jointly announced news, but our reporter learned from insiders of MediaTek that every time MediaTek ships a 3G chip, Qualcomm will draw 6% of the royalties.

Not only this Taiwanese electronics company, but also manufacturers in the industry are participating in the patent acquisition team. On November 9, Samsung spent US $ 1.3 billion to obtain the right to use Qualcomm ’s patents on CDMA, WCDMA and OFDMA for the next 15 years.

The industry believes that MediaTek can successfully obtain Qualcomm authorization, which means that MediaTek has officially obtained 3G admission tickets. In addition to the domestic market, MediaTek ’s market reputation will gradually be "rectified", so as to openly strive for 3G products from international first-tier brands Cooperation opportunities.

Identity identification

In order to get rid of the title of "the king of the cottage", MediaTek has been trying hard to establish a relationship with international first-line brands to "support itself". In recent years, their position in the market has also changed.

On September 4, MediaTek formally entered into several mobile phone chip solutions of Vodafone, Europe's largest telecommunications service provider, and entered the European mobile phone market with justifications, and officially captured the original positions of Qualcomm and Texas Instruments, the largest mobile phone chip manufacturers in Europe and the United States.

In fact, as early as 2006, MediaTek obtained the order for the Vodafone mobile phone through the mobile phone OEM model, but at the time, based on the principle of confidentiality, the two parties did not openly cooperate. Today, Vodafone is finally willing to publicly recognize MediaTek's identity, which symbolizes that MediaTek's market influence is now unprecedented.

In addition, MediaTek earlier received support from two other international electronics giants, Microsoft and Intel, and was authorized by Microsoft ’s smartphone operating system, WindowsMobile, to be able to implant the operating system into MediaTek ’s smart phone solution. Earlier, Yang Xu, president of Intel China, also issued a signal that he was optimistic about the cottage. At the time, the media were arguing about MediaTek's copycat banner, which might later change its flag.

MediaTek successfully established a solid position in the mobile phone chip market in a relatively short period of time. Currently, more than 60% of the company's total revenue comes from the mobile phone chip market. Semiconductor market research organization ICInsights recently announced the latest list of the world's top 20 semiconductors in the first three quarters of 2009. MediaTek was shortlisted for the first time and ranked 17th. Their ranking was only 25th last year. In the first three quarters of this year, revenues reached nearly US $ 2.6 billion, of which growth was 23% in the third quarter.

This electronics company, once dismissed by the industry and even carrying the notoriety of "Father of Black Phones", relying on its own tenacious product production capacity and active participation in cooperation with major international companies, has gradually got rid of the past. Reputation, and it has become one of the companies that can compete with international first-line brands.

MediaTek's confusion

Regarding the agreement reached between MediaTek and Qualcomm on CDMA and WCDMA patents, MediaTek Chief Financial Officer Yu Mingduo emphasized that the agreement with Qualcomm is a patent agreement, not a patent authorization, so MediaTek will not need to pay Qualcomm any one-time and single-chip Authorization fee for goods, but the phone manufacturer must be authorized by Qualcomm. "At present, MediaTek's customers with Design-in agreements have passed Qualcomm's authorization." Yu Mingduo emphasized.

Yu Mingduo revealed to the media that, as far as he knows, MediaTek's chip design customers (including mobile phone brands and manufacturers) are authorized by Qualcomm. As for the timing of 3G mobile phone shipments, it still depends on the customer's progress. The reporter of this magazine also learned from the company that MediaTek's first WCDMA3G chip has been put into trial production at TSMC in small quantities. If the authorization is successfully obtained, it will be expected to be shipped smoothly by the end of the year.

Earlier, regarding Qualcomm's intention to enter the TD market, industry insiders worried whether this would conflict with MediaTek's chip licensing patents. In this regard, Yu Mingduo did not want to mention too much, only saying that because of MediaTek ’s cooperation with large manufacturers, there is no conflict in patent licensing. “If Qualcomm intends to enter the TD market, it does not have much to do with MediaTek.”

"Although the prospects are still unclear, MediaTek has got rid of the title of" Shanzhai Wang "and gradually moved closer to international top brands." People in the industry have expressed their optimism about MediaTek's progress.

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