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SHANGHAI, China Multinational semiconductor companies are nolonger able to compete with China s fabless chips vendors in theconsumer electronics IC business, according to Vincent Tai, CEO ofRDA Microelectronics Inc. It s game over for them, Taiasserted in a recent interview with EE Times here. RDA Microelectronics, founded here in 2004 and listed on the Nasdaqexchange since November 2010, is a leading Chinese fabless ICvendor supplying RF and mixed-signal chips for cellular andbroadcast communications used by China handset manufacturers. RDA is a major supplier to the Chinese mobile handset market. Tai,quoting IHS iSuppli estimates, claimed RDA already has the leadingmarket share in power amplifiers, Bluetooth, FM tuners and DVB-Stuners for the domestic white label market. Still, RDA has a long way to go to compete with the likes ofBroadcom in the global semiconductor market. Still, according toTai, being a leader in the Chinese market is a good place to be. RDA s enviable position foreshadows a growing trend here forcompanies like RDA to dominate global electronics markets, Tainoted. As evidence, he cited the fact that multinationals such asAnalog Devices and Texas Instruments backed out of China sbaseband chip business. While technically not Chinese companies,MediaTek and MStar, two Taiwanese giants, grabbed that market byleveraging their Chinese ties. Indeed, Tai boldly predicts that the days for multinational chipcompanies are numbered, especially in the Chinese mobile handsetand set-top box markets. It s because the supply chain in Chinacan t allow you to have a 50 percent gross margin, he explained. When the entire ecosystem of foundries, design houses along withpackaging and system OEMs resides here, You need to be a local toplay the game, said Tai. The RDA chief described four rules for surviving in the Chinesemarket: Rule #1: The cycle time for Chinese handset manufacturers isextremely short. While takes six months (or a year in the case ofNokia) to design a new mobile handset outside China, Chinesecellphone makers are spinning out new models every three months. Rule #2: Chinese handset vendors provide chip suppliers will littleinformation about market demand. Therefore, chip suppliers need tobe in touch with the market, said Tai, so they can be readywhen market demand spikes. Speed is the key. You need to be ableto live with the ups and downs on the China market, he said. I am an expert from digital-torque-wrench.com, while we provides the quality product, such as China Torque Spanner , China Digital Torque Wrenches, Digital Torque Wrenches,and more.
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