Abstract

Both LHWT and HED have launched WLAN baseband+MAC IC solutions. However, these companies are faced with a global WLAN IC market dominated by a handful of leading IC suppliers -Intel in the desktop and notebook PC segment, Broadcom in the broadband segment, and Atheros in the mobile and consumer electronics segment. The first challenge to be overcome is customer development. China's WLAN IC suppliers have been focusing on the Chinese domestic market, particularly the government procurement market, where there is significant demand for WLAN chips for use in e-government and police applications.

With encouragement from the Chinese government, the WAPI Industrial Alliance has been formed with members that include WLAN chip design houses, research institutions engaged in basic research, WAPI IC design firms, system integrators, equipment makers, and telecommunications operators. The government hoped that the formation of this alliance would help to strengthen interaction within the WAPI sector and to facilitate market development. However, the achievement of these aims will depend on the strategies adopted by the individual member companies.

By making WAPI a compulsory standard in China, the Chinese government hopes to stimulate the development of the Chinese WLAN IC industry. However, the failure to have WAPI accepted as an international standard means that WAPI will currently be restricted to the Chinese market. In addition, the enforcement of the WAPI standard in China, originally slated for June 1, 2004, has been postponed by the Chinese government. As a result, developing next-generation 802.11n products and strengthening the level of integration for ICs will play an important role for Chinese IC suppliers in the development of international customers.

Appendix

List of Companies