The dream of the Datang’s chip and the high Qualcomm

2018-06-28

Lei Feng network, according to the news of high tech and Datang Telecom joint venture company of the joint venture company, is not expected to attract the attention of the market in the public opinion environment of the whole people’s attention to the chip, and in this multi party scene, high pass and Datang Telecom have their own thoughts.

The dream of the Datang's chip and the high Qualcomm

The dream of the chip of the Datang

In May 5th, the Datang Telecom listed company announced that in May 4, 2018, the company received the decision of the anti monopoly review of the operator’s centralized antitrust review issued by the Anti Monopoly Bureau of the State Administration of supervision and Administration ([2018] first). The main contents are as follows: “according to the Chinese people’s Republic,” The twenty-sixth article of monopoly law stipulates that, after examination, it is decided that the case of Beijing Jian Guang Asset Management Co., Ltd., Datang Telecom Polytron Technologies Inc, Qualcomm Corp and other newly established joint venture cases are not prohibited. The case involves other matters other than centralized antitrust review by operators, and is handled according to relevant laws. “

As a result, Datang Telecom has triggered a new round of changes in the chip industry. But before that, Datang Telecom’s allied core technology also had a glorious period, though only two years ago.

Jenaki, chairman of the telecommunications and telecommunications group, said that in 2008, Datang Telecom has made TD-SCDMA – style 3G equipment, but overseas chip manufacturers have no positive response to TD-SCDMA – style chips. United core technology was born in such a context, and the 3G market joint technology has indeed achieved an outbreak.

With the decline of the market bonus, the company has been exposed to the fierce market competition, and the direct competitor has become a display (now purple light). Although the company has also had the bright eye performance with millet cooperation to achieve a large number of chip shipments, with the millet one hundred million yuan to buy the related patents related to the core technology, the core technology is not In the past.

Datang Telecom is currently facing two major asset restructuring, one is the establishment of technology with Qualcomm, and the other is the reorganization of beacon group. According to Lei Feng net, the restructuring progress of Datang Telecom and beacon technology is lower than expected, and the chip market has become an urgent opportunity for Datang Telecom to seize.

CEO Wang Pengfei, the original Datang Telecom, told the first financial interview in 2016 that Dang Telecom will turn from the “core to cloud” parallel strategy to the “integrated circuit design + application solution” strategy in the next five years.

From the performance of Datang Telecom in the past two years, the transformation is obviously just a start, and a joint venture with Qualcomm is a great attempt. Datang Telecom can use high pass technology to force about 100 dollars in the middle and low end chip market, but it has considerable uncertainty.

High Qualcomm

Qualcomm, which shares the same shares with Datang Telecom, is the biggest variable.

Datang Telecom is injected into the new company with the total stock price of the core technology and subsidiary company, and Qualcomm to share the same share in the form of cash in the form of cash.

As of March 25th, high Qualcomm 2018 financial year second quarter report showed that high Qualcomm revenue was $5 billion 261 million, no shortage of money, high Qualcomm without financial pressure, the motivation to participate in the establishment of joint venture chip companies is to extend their market leadership cycle. From the point of view of capital contribution, high pass is mainly funded by cash, and there is a lot of discussion space on whether to provide relevant technology and to improve the level of technology.

In return, Qualcomm has obtained the entry permit in the Chinese market.

On the one hand, the Chinese market is still the single largest market with high potential. Lei Feng network (public number: Lei Feng: Lei Feng net) learned that in 2017 fiscal year Qualcomm from China’s OEM manufacturer’s revenue composite annual growth rate reached 17%, Qualcomm is expected to reach 8 billion US dollars in 2019.

From the point of view of “money”, Qualcomm also needs to invest ahead of time.

On the other hand, with the rapid development of the Internet of things industry, Qualcomm chips will further seize the market and seek greater market share. China’s Internet of things research and development center is expected that in 2018, the size of the Internet of things industry in China will reach 1 trillion and 500 billion, in 2020, it will reach 2 trillion, and the compound growth rate will be 22%.

720 million yuan VS future broad market space, from the perspective of “prospects” to consider, Qualcomm should also make such a choice. It is natural to make such a decision on the perspective of high Qualcomm itself, but from the domestic chip industry, the bridge segment with the market for technology is not necessarily viable.

It is impossible to show the core technology of high pass. Datang Telecom has still promoted the establishment of a joint venture. Qualcomm has never explained its intention, with great technical advantages and high Qualcomm to enter the field.

Lei Feng net believes that the chip industry has been the top priority of the national strategic development in recent years. It has a state-owned enterprise endorsement and potential technical advantages, but it can eventually be converted into a real number of books, and the performance and degree of the new company’s market performance.

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