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Bountiful year awaits China's cellular chip market

Posted: 15 Mar 2007 ?? ?Print Version ?Bookmark and Share

Keywords:3G? W-CDMA? HSPA? GSM? cellphone IC?

A growing demand for smartphones and 3G handsets is driving mainland China's cellphone chip market, which is poised to hit $11.4 billion this year and $14.3 billion in 2008.

Last year, China's cellphone chip market amounted to $8.5 billion, up 50.4 percent, the biggest increase registered since 2001, according to CCID, a government-backed research firm. For 2007, CCID estimates 28.3 percent growth and a 26.5 percent uptick the following year.

The gains come as more and more cellphones are made in China and also as the market here continues its expansion. There are more than 400 million mobile phone subscribers in China today.

Recently, China's telecom providers have also begun touting their gains in local and global markets. Huawei Technologies said it won 28 W-CDMA/HSPA contracts in 2006, and has a total of 47 contracts to date. ZTE Corp., the country's second largest telco gear maker, claims to have won 41 percent of the orders for CDMA networks worldwide in 2006.

Huawei also claims it has 68 percent of the CDMA wireless local loop global market and 65 percent of CDMA450. Last year, the company said it staked out 21 percent of the global market for GSM networks, placing it in the top three, behind Ericsson and Nokia/Siemens.

Huawei and ZTE mostly operate in second and third-tier markets, such as Latin America and Africa. But they have also gained some acceptance in Europe and North America.

-Cai Yan
EE Times

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