Abstract

In 2005, Actions Semiconductor's annual revenue reached US$149.4 million. It even posed a threat to SigmaTel, the current leader in the global MP3 player SoC market. Actions Semiconductor's development model can be analyzed in three areas, namely price, technology, and sales.

First, the company reduced production costs through partnerships with Chinese semiconductor manufacturers such as HeJian Technology and TSHT. In addition, it penetrated the market with a price approximately 50% of the average market price. Secondly, it studied technologies from leaders in the industry, while at the same time collaborating with MIPS, Microsoft and others to enhance its technological capabilities. Finally, Actions Semiconductor has an extensive product line, including chips supporting portable media and chips supporting portable media and digital video camera functions, multimedia chips supporting various storage devices, and multimedia chips/SDKs/Reference designs total solutions. Regarding customers, although the Pearl River Delta is a major MP3 player manufacturing base, many manufacturers do not have very strong technological capabilities. Actions Semiconductor's total solutions meet these manufacturers' needs. Furthermore, the company is located near the facilities of its customers, and therefore it has been able to obtain a significant number of orders and has become a major player in the industry.