Abstract

International Makers Enter TD-SCDMA Market via T3G

China's TD-SCDMA standard was accepted by the ITU in 2000. However, since this was a new technology, and the technical capabilities of China's mobile communications industry were still relatively limited at that time, building up TD-SCDMA technology capabilities and a comprehensive industry supply chain became major priorities.

To shorten the learning curve, the Chinese vendors involved in the TD-SCDMA project decided to collaborate with leading international communications equipment vendors. In the case of T3G, Datang joined forces with Philips, Samsung, and Motorola, with Philips providing the IC and protocol technology, while Samsung and Motorola offer commercialized mobile phones for T3G.

Fro international vendors, although the global 3G market as a whole is dominated by the WCDMA and CDMA2000 standards, the Chinese mobile phone market is now the largest in the world. In addition, given the Chinese government's support for TD-SCDMA, expansion into the TD-SCDMA market will be an important move.

While Samsung, Philips, and Motorola acquired shares in T3G, Nokia, TI, LG, and DBTEL have invested in Commit. Sony Ericsson and BenQ-Siemens have yet to join in the TD-SCDMA fray; it is possible that they adopt an ADI or Spreadtrum solution.

Chip Integration Poses Challenges for T3G

ADI, T3G, Spreadtrum, and Commit have all introduced TD-SCDMA chips. ADI and Spreadtrum have already succeeded in integrating the GSM and TD-SCDMA digital baseband functions onto a single chip, whereas T3G is currently still using separate chips for GSM and TD-SCDMA. Similarly, as regards the application processor, Commit and Spreadtrum have already integrated MP3 function into the digital baseband chip, while T3G uses an external application processor. Although the use of an external application processor makes it easier for mobile phone vendors to differentiate their products, it also increases the complexity of mobile phone R&D and results in longer time-to-market for new models. At the same time, the lower level of integration in T3G products also causes overall mobile phone costs to rise.

In the RF IC segment, T3G relies on Maxim to supply the TD-SCDMA RF IC, while Philips provides the GSM RF IC. To achieve further integration in this area, T3G will need to ensure close collaboration between these different suppliers. However, Philips' expertise in IC power management ensures that T3G products have impressive power management performance, which in turn makes it easier for mobile phone vendors to develop mobile phones with an impressive range of application functions.

Appendix

List of Companies