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Exynos 5 Octa, flexible display enhanced with Microsoft vision et al. from Samsung Components: the only valid future selling at CES 2013

[5:30 – 5:39] of the video embedded in ‘Details’ section below:
Samsung Components [the proper name is Device Solutions Division, Samsung Electronics]: a $16B operation just for Q3 2012 alone.

WTF are 8 cores for? How the mobile battery will cope with that? And the fundamental (technical only) answers to both questions (objections) are:
[24:00 – 24:50] of the video embedded in ‘Details’ section below:
demo and illustration of the big.LITTLE
Warren East, CEO, ARM:

[24:57] It is providing roughly twice the performance of today’s leading edge smartphones at half the power consumption when running common workloads [25:07]

Add here just the following illustration in order to avoid the (unfortunately) quite typical misunderstanding of having 8 core in Exynos 5 Octa, when in fact there are 4 cores used for different workloads:

WTF is a flexible display for?
[48:53 – 54:00] of the video embedded in ‘Details’ section below:
How Microsoft is using Samsung components to enhance their solutions, Eric Rudder, chief technical strategy officer, Microsoft:

image
[51:37] We actually have a prototype of Windows Phone and how would look on one of those screens [51:41]
image

[51:41] And Microsoft’s vision is that sensors like Kinect combined with flexible, transparent and projected displays will bring us to a point when any object can be a Surface and can be a computer. I’d like to close with a short video from Microsoft Research which extends interactivity to every surface in your living room. Last year you’ve may seen some videos with precomputed projections. What we’re demoing today is both real-time and fully interactive. And while you may find it hard to believe the footage shown here is exactly what’ve appeared in the lab without any special effects being added. Some companies talk about reality distortion field we’ve actually built one. [52:32]

[52:35 – 53:20] IllumiRoom Projects Images Beyond Your TV for an Immersive Gaming Experience [MicrosoftResearch YouTube channel, Jan 8, 2013]

IllumiRoom is a proof-of-concept Microsoft Research project designed to push the boundary of living room immersive entertainment by blending our virtual and physical worlds with projected visualizations. The effects in the video are rendered in real time and are captured live — not special effects added in post processing. IllumiRoom project was designed by: Brett Jones, Hrvoje Benko, Eyal Ofek and Andy Wilson

[53:24] This is just a glimpse of what our future may hold in store for us. We’re excited that this technology can be used in many different ways: to enhance a TV or movie experience, or increase the reality of a flight simulator, or make educational scenarios more exciting. We look forward to our continued partnership with Samsung to deliver the next generation of devices and services. [53:49]


Details

<CES 2013 “warm-up” clips, worth to skip> [3:10]
<Gary Shapiro intro, might be skipped> [6:00]

Samsung Exynos 5 Octa & Flexible Display at CES 2013 Keynote [SamsungTomorrow YouTube channel, Jan 9, 2012]

Samsung introduced its Exynos 5 Octa, Green Memory Solution, Flexible OLED and Green LCD at CES 2013. This is the keynote speech of CES 2013 with the theme of ‘Mobilizing Possibility’ presented by Dr Stephen Woo, President of Device Solutions Business for Samsung Electronics. He talks on how Samsung’s innovative components technology has been bringing future into present at CES 2013.

Samsung Highlights Innovations in Mobile Experiences Driven by Components, in CES Keynote [Samsung press release, January 9, 2013]

Samsung’s President Introduces Broader Partnerships, New Products and the Possibilities They Enable

LAS VEGAS–(BUSINESS WIRE)–Samsung Electronics Co., Ltd., a world leader in advanced semiconductor solutions, today redefined the story of consumer electronics from its perspective beneath the surface of mobile devices at the 2013 International CES keynote address.

“When you want multiple applications to perform at their best, you want the best application processor currently available—the Exynos 5 Octa.”

Dr. Stephen Woo, president of System LSI Business, Device Solutions Division, Samsung Electronics, shared the company’s vision of “Mobilizing Possibility,” highlighting the role of components as the engine behind innovation across the mobile landscape. The keynote event illustrated possibilities that Samsung envisions offering through its component solutions, and introduced new products that will herald such expectations.

“We believe the right component DNA drives the discovery of what’s possible,” said Woo. “Components are building blocks—the foundations on which devices are built. We at Samsung’s component solutions are creating new, game-changing components across all aspects of devices.”

Guests from partnering companies, such as Warren East, chief executive officer, ARM; Eric Rudder, chief technical strategy officer, Microsoft; Trevor Schick, senior vice president, enterprise group supply chain procurement, HP; and Glenn Roland, vice president and head of new platforms and OEM, EA; also took part in the event, echoing Samsung’s mission to offer breakthrough products and create shared value (CSV) for both manufacturers and end-users.

Woo opened by presenting Samsung’s goal for Mobilizing Possibility that takes big ideas off the drawing board and brings them to life for end-users, especially in the areas of processing performance, energy-efficient memory solutions and display technology. He emphasized that the limitless possibilities presented by consumer electronics will be based on component innovations by the company.

Processing Power

The first of Samsung’s new products announced at the keynote was the Exynos 5 Octa, the world’s first mobile application processor to implement the ARM® big.LITTLE™ processing technology based on the Cortex™-A15 CPU. Following the Exynos 5 Dual, which is already on board of market-leading products such as the Google Chromebook and Nexus 10, the successor is the newest addition to the Exynos family of application processors.

“The new Exynos 5 Octa introduces a whole new concept in processing architecture…designed for high-end smartphones and tablets,” said Woo. “When you want multiple applications to perform at their best, you want the best application processor currently available—the Exynos 5 Octa.”

To expand on the big.LITTLE concept, Warren East, chief executive officer, ARM, joined Woo on stage and introduced the new technology that has just become available in silicon through the Exynos 5 Octa. Housing a total of eight cores to draw from—four powerful Cortex-A15™ processors to handle processing-intense tasks along with four additional Cortex-A7™ cores for lighter workloads—the application processor offers maximum performance and up to 70 percent higher energy efficiency compared to the previous quad-core Exynos.

Glenn Roland, vice president and head of new platforms and OEM, EA [Electronic Arts], helped Woo demonstrate the processing power of the Exynos 5 Octa by showing off one of EA’s latest 3D racing games, Need for Speed™ Most Wanted. Atop the reference device, the application processor delivered an elevated real-life gaming experience within the mobile platform, rendering stunning graphics performance and real-time response speed.

Green Memory Capabilities

As advanced processing power on mobile devices accelerates easier data creation by the masses, the mobile experience will increasingly become more dependent upon datacenters largely responsible for the proliferating data traffic. Growing in size and capacity, IT systems face challenges both in performance and power savings to secure sustainability moving forward. Memory devices, the main products for servers that make up these datacenters, can deliver substantial gains by adopting cutting-edge technology available from Samsung.

Woo pointed out that managing the power consumption in these datacenters have become crucial and that Samsung’s green memory solutions with solid state drives (SSD) and advanced DRAM (dynamic random access memory) are addressing this key issue with their powerful, yet energy-efficient processing capabilities. Compared to traditional datacenters that incorporate hard disk drives (HDD), server and storage solutions equipped with green memory pull the data processing speeds up six-fold while operating with 26 percent less electricity.

Display Technology

As components on the surface that interact directly with users, display solutions bring the technology advancements to life and make them tangible through the device interface. Woo presented the future possibilities of Samsung’s displays along with Brian Berkeley, senior vice president of Samsung Display. While crystal-clear picture qualities become a reality, the two Samsung speakers were pleased to share that the innovations do not sacrifice energy efficiency.

Woo and Berkeley described the 10.1-inch liquid crystal display (LCD) panel that is currently adopted by the Nexus 10. With a 2560×1600 resolution and 300 pixels per inch (ppi), the panel renders stunning picture qualities while consuming only 75 percent of the energy used in previous display solutions.

Using Samsung’s energy-efficient green LCD technology, the company is currently developing a 10.1-inch model that would lower power consumption even further by 25 percent, while offering equal resolution qualities as its predecessor.

Prototypes and real-life scenarios for Samsung’s line of flexible organic light emitting diode (OLED) displays were also showcased, promising various mobile application opportunities for consumer electronics manufacturers. Dubbed “YOUM,” the flexible display line-up uses extremely thin plastic instead of glass, making it bendable and virtually “unbreakable.” Berkeley featured a smartphone prototype equipped with a curved edge that showed contiguous content along the side of the device.

“Our team was able to make a high-resolution display on extremely thin plastic instead of glass, so it won’t break even if it’s dropped,” said Berkeley. “This new form factor will really begin to change how people interact with their devices, opening up new lifestyle possibilities … [and] allow our partners to create a whole new ecosystem of devices.”

One of Samsung’s partners that bring the company’s state-of-the-art components together is Microsoft, adding more layers of value to the final product with its software solutions, devices and services. Eric Rudder, chief technical strategy officer, Microsoft, took the complete ATIV family of devices as an example through which Samsung’s component solutions and Windows 8 together present new potential in user interfaces. Rudder reported that Microsoft Research has been continuing its work on next-generation display technologies, enabling new modes of human-computer interaction.

Possibility for All

Creating a better world with its resources is one of Samsung’s core values. Samsung’s flagship corporate social responsibility initiative, Samsung Hope for Children, was launched in this spirit, through which the company provides its products, expertise and financial support to tackle the needs of children around the world for education and healthcare. Woo emphasized that Samsung’s innovation in components share the same thread as a driver that truly mobilizes possibility without boundaries or barriers.

“When [Samsung’s] technologies harmonize, amazing things happen. Advances in components are giving rise to a whole new era of possibility,” said Woo. “At Samsung, we are passionate about Mobilizing Possibility. Not just for the privileged few, but possibility for all.”

For more information about Samsung’s 2013 International CES keynote, visit www.samsung.com/2013ceskeynote or www.samsungces.com.

About Samsung Electronics Co., Ltd.

Samsung Electronics Co., Ltd. is a global leader in consumer electronics and the core components that go into them. Through relentless innovation and discovery, we are transforming the worlds of televisions, smartphones, personal computers, printers, cameras, home appliances, medical devices, semiconductors and LED solutions. We employ 227,000 people across 75 countries with annual sales exceeding US$143 billion. Our goal is opening new possibilities for people everywhere. To discover more, please visit www.samsung.com.

ARM TechCon 2012 – Warren East, CEO ARM Keynote [ARMflix, Nov 2, 2012]

Warren East, CEO of ARM gives industry keynote at TechCon 2012 Presentation Title: Low-Power Leadership for a Smarter Future

More essential details:
Cortex-A7 OR Low-Power Leadership for A Smarter Future – The Legend of ARM Cortex-A7 [USD 99 Allwinner, Jan 7, 2013]
Fast 3d party IP OR the external Intellectual Property which makes Allwinner’s unprecedented pace of further next-gen SoC introductions possible despite of the company size of only 500 employees [USD 99 Allwinner, Dec 28, 2012]
Samsung Exynos 5250 [Dec 6, 2011]
– for Samsung semiconductor foundry operation: see inside the Qualcomm’s critical reliance on supply constrained 28nm foundry capacity [this same ‘Experiencing the ‘Cloud’ blog, July 27 – Nov 13, 2012]
Intel targeting ARM based microservers: the Calxeda case [this same ‘Experiencing the ‘Cloud’ blog, Dec 14, 2012]
Intel’s biggest flop: at least 3-month delay in delivering the power management solution for its first tablet SoC [this same ‘Experiencing the ‘Cloud’ blog, Dec 20, 2012]

Windows RT must work with more chips to take off, ARM CEO says [CNET, Jan 9, 2012]

LAS VEGAS — Microsoft’s newest operating system that runs on cell phone chips is off to a slow start, but it’s only a matter of time before it gains more traction, the chief executive of chip technology designer ARM Holdings said.

Warren East, speaking today in an interview with CNET at the Consumer Electronics Show in Las Vegas, said that for that to happen, Microsoft needs to make its software, dubbed Windows RT, work with more ARM-based processors. He said it eventually will do so, but it’s unclear when that will be.

Currently, Windows RT runs only on Qualcomm and Nvidia chips (it also used to work with Texas Instruments’ processors, but that company decided to move away from providing chips for mobile devices). And only four PC makers ultimately built Windows RT products.

“If Microsoft wants to benefit from the ARM business model and the ARM world, then they’ll have to support multiple players,” East said. “Otherwise, there’s no real advantage for them in working with ARM.”

East today noted that when Microsoft first started talking with ARM about making a tablet/PC operating system that works with its processors, Microsoft wanted to work with only one ARM-based chip partner.

“We said, ‘no, no, you need to work with a few, because we have found over the years it helps to work with a few, or otherwise you end up getting too channeled into the requirements of one customer,” he said.

Microsoft Research at CES: IllumiRoom [Next at Microsoft blog, Jan 9, 2013]

Earlier this morning at CES, Eric Rudder, Microsoft’s Chief Technology Strategy Officer, joined the Samsung keynote to share Microsoft’s vision for extending computing interactions to any surface in your home. This wasn’t a product launch but I’m excited by the potential shown in the research that we shared.

Imagine a space like your kitchen or a classroom achieving that same level of interactivity as your phone – this will happen through a combination of embedded devices and sensors such as Kinect for Windows. Our research demo only covers educational and entertainment scenarios but the possibilities are endless.

It’s rare for a company to pull back the curtain and share research in such raw form at the world’s largest technology tradeshow. However, we think it’s vitally important to get the next generation of students excited about Computer Science – and what better way than to show off research that makes gaming more fun! 

While magicians never share their secrets, researchers have to publish, so, a bit of explanation about the demo is in order. You may have seen interesting 3D-mapped projections over the past few years – Microsoft partners like Nokia and Samsung have both used pre-rendered footage in recent marketing efforts. What’s new in this work is that our researchers used Kinect for Windows to map the room in real-time in order to make projected illusions fully interactive. Most importantly, the effects shown in the video were captured live as they appeared in the living room environment and are not the result of special effects added in post processing.

For more on the science behind this demo, check out the MSR IllumiRoom project site from Hrvoje Benko, Andrew Wilson, Eyal Ofek, and Brett Jones – they’ll have more to come at CHI 2013 in April.

IllumiRoom: Peripheral Projected Illusions for Interactive Experiences [Microsoft Research, Jan 9, 2013 ]

image

IllumiRoom is a proof-of-concept system from Microsoft Research. It augments the area surrounding a television screen with projected visualizations to enhance the traditional living room entertainment experience.

IllumiRoom uses a Kinect for Windows camera and a projector to blur the lines between on-screen content and the environment we live in allowing us to combine our virtual and physical worlds. For example, our system can change the appearance of the room, induce apparent motion, extend the field of view, and enable entirely new game experiences.

Our system uses the appearance and the geometry of the room (captured by Kinect) to adapt the projected visuals in real-time without any need to custom pre-process the graphics. What you see in the videos below has been captured live and is not the result of any special effects added in post production.

Stay tuned for more information and a paper explaining all the details coming up at ACM CHI 2013.

Intel’s biggest flop: at least 3-month delay in delivering the power management solution for its first tablet SoC

This is all despite the fact that Intel had already the following slides back in April on the IDF2012 in Beijing:

imageimage
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i.e. the slide on the left was explicitly stating these Mobility Features:
9+ Hours Battery Life
~30 Days Standby
as well as among the Experience Features:
Connected Standby 
The last two features are still (Dec 20) not met even for available Acer & Samsung devices!Source of the slides: Developing for Microsoft Windows 8 on Intel Architecture Based Tablets and Hybrids [Intel Developer Forum 2012 in Beijing, April 11, 2012]

In my Windows 8 gaining smartphone like “connected standby” capability [this same ‘Experiencing the Cloud’ blog, Nov 12, 2011] post I summarized the feature as:

New power state called “Connected Standby”

  • Windows coalesces all the timer and network requests, turns the radio on periodically to satisfy them, then goes back to very low power consumption.
  • But because app requests are getting satisfied they are up to date as soon as you press “ON”

Microsoft was clear as early as in 2011 in its Building a power-smart general-purpose Windows [Building Windows 8, Nov 9, 2011] post that:

For Windows 8, we’ve built a new device power framework that allows all devices to advertise their power management capabilities and integrate them with a special driver called the Power Engine Plug-in or PEP, designed for SoC systems. The PEP is provided by the silicon manufacturer and knows all of the SoC-specific power management requirements. This allows device drivers like our USB host controller or a keyboard driver to be built once, and still deliver optimal power management on all platforms from SoC-based PCs to datacenter servers.

We are hard at work with all of our ecosystem partners to deliver the low-power and long battery life technologies we all want in our Windows 8 PCs.

In Collaborating to deliver Windows RT PCs [Building Windows 8 blog, Aug 14, 2012] post Microsoft was even reporting that for ARM based Windows products:

The following chart shows some of the measurement ranges we are seeing as we test early production PCs for the connected standby and power scenarios.

The measurements are based on firmware still undergoing final optimizations, and the just released Windows RT RTM code, and will only improve as the PCs move towards manufacture. To provide context on the significance of the measurement, it is important to understand how the scenario was measured. In this case, the PC was playing back in full screen a local HD video at full resolution with a screen brightness of 200 nits. It was also configured for one email account using the Microsoft network. Finally, these numbers are also influenced by the different PC form factors themselves, which include both tablets and laptops, screen sizes that vary from 10.1” to 11.6”, and battery sizes spanning 25 Whr to 42 Whr.

Scenario

Early production range

HD Video Playback

8 hours to 13 hours of scenario run time

Connected Standby

320 hours to 409 hours of scenario run time

Then in NVIDIA Powers Amazing Windows 8 Experiences [NVIDIA press release, Oct 25, 2012] the number for connected standby on the Windows RT delivery was reported as:

Windows RT marks the first time that PCs have been able to take advantage of incredibly efficient ARM-based processors like Tegra 3, enabling two weeks of connected standby time. The majority of Windows RT devices at launch use NVIDIA Tegra 3, including the ASUS Vivo Tab RT, Lenovo IdeaPad Yoga 11 and Microsoft Surface RT.

Note: For Android tablets similar results are available, if any. The Chinese made V971 tablet from Onda with an AML8726-MX SoC (dual Cortex-A9 CPU cores at 1.5GHz and dual core Mali 400 GPU), for example, has a “longest standby time” (最长待机时) of 360 hours. So even relatively unknown SoC vendors, like in this case Amlogic, in cooperation with Google were able to meet similar kind of power efficiency results in connected standby terms as Microsoft was able to meet with its selected ARM SoC partners, NVIDIA, Qualcomm and Texas Instruments for the new Windows release.

Nevertheless almost a year later than the original public information about Windows 8 gaining smartphone like “connected standby” capability [this same ‘Experiencing the Cloud’ blog, Nov 12, 2011], in September 2012 Bloomberg reported that:

Intel Corp. (INTC) Chief Executive Officer Paul Otellini told employees in Taiwan that Microsoft Corp. (MSFT)’s Windows 8 operating system is being released before it’s fully ready, a person who attended the company event said.

Improvements still need to be made to the software, Otellini told employees at a company meeting in Taipei yesterday, said the person, who asked not to be identified because the meeting was private.

Then despite an Intel Statement in Response to Unsubstantiated News Reports [Sept 26, 2012] Bloomberg BusinessWeek soon reported that Intel Software Snag Said to Hamper Windows Apple Response [Oct 1, 2012]

Intel Corp. (INTC)’s delayed delivery of software that conserves computer battery life is holding up development of some tablets running the latest version of Microsoft Corp. (MSFT)’s Windows operating system, a person with knowledge of the matter said.

Microsoft hasn’t yet approved any tablets featuring an Intel processor code-named Clover Trail because the chipmaker hasn’t produced necessary power-management software, said the person, who asked not to be named since the process is private.

ZDNet clarified the issue as:

Clover Trail introduces two new power management states, called S0i1 and S0i3. S0i1 is described as an “active” sleep state that kicks in when the user stops using the device but hasn’t yet put it to sleep, while the S0i3 sleep state is called a “connected” sleep state [rather: Windows 8 connected standby] and this allows the device to enter a state where it consume microwatts of power but can still wake up in a matter of milliseconds.

These new sleep states mean that the standby battery life of Z2760-powered hardware can be as much as three weeks.

Here we are talking about the driver programming for two power management units, each with its own microcontroller, as shown on the Clover Trail block diagram below:

image

which is related to new ultra low power states introduced into this next-generation Atom SoC:

image
which look like under thermal imaging as follows:
image  imageimage  image
Source of the slides: Tablet Platforms with Next Generation Intel® Atom™ Processors and Microsoft* Windows* 8 [IDF2012 San Francisco, Sept 12, 2012] by Joseph Nielsen,Tablet Platform Marketing Engineer, Intel Corporation and Mark Ewert, Tablet SoC Si Architect, Intel Corporation.

From Microsoft point of view, in addition to the already referred post, there is a follow-up Improving power efficiency for applications [Building Windows 8, Feb 8, 2012] post as well  which summarizes the Windows 8 SW part as:

Connected standby and sleep-capable machines

By the time Windows 8 is released, there will be a broader range of PCs available than ever before. Many of these will have similar power options to those running Windows 7 today. Besides turning off completely, they will be able to go into a “sleep” state, either on demand, or after a period of inactivity. During sleep, all system activity is completely suspended.

image

The chart above shows how, as the PC idles just prior to sleep, desktop apps continue to run in the same way as they have in prior versions of Windows, while Metro style apps run in the managed way I described earlier. When the PC goes to sleep, both desktop apps and Metro style apps are fully suspended. This is great for battery life—when the machine is asleep, it consumes very little power. It’s not as great for a data-freshness though, since when the machine is asleep, it isn’t getting live tile updates, downloading new mail, or getting ready to alert you with alarms or other notifications.

As Pat covered in his post [i.e. in Building a power-smart general-purpose Windows [Building Windows 8, Nov 9, 2011] referred earlier], we’ve enabled a new smartphone-like power state for a new class of PCs that rarely get turned off completely. Typically based on “System on Chip” (SoC) architectures, these PCs are interesting because instead of turning off during periods of inactivity they go into a very low power state while still running. This new state is referred to as “connected standby.” This enables some great connected scenarios, such as always having email up-to-date, and being able to receive instant messages or phone calls, while still delivering amazing battery life. The chart below shows behavior for both desktop and Metro style apps during connected standby. For this to really work effectively though, we had to consider both Metro style apps (which, as you saw earlier, we can very effectively ensure are conservative with system resources), as well as desktop applications, which presented a tougher challenge because they have been designed over the years to expect either full access to system resources (when running in the fore or background) or no access (when the PC is asleep.)

image

To this end, we have added a new component to Windows 8 called the “Desktop Activity Moderator,” which only runs on these new connected standby-capable platforms. This component is designed to help reduce the resource utilization of desktop apps when the device goes into connected standby. If we allowed apps to continue running unchecked in this low-power mode, the PC would run down the battery more quickly. Instead, we suspend desktop applications, stopping their resource use and maximizing battery life. From the applications’ perspective, it will appear as if the PC has simply been put to sleep. When the PC is woken from connected standby, the app will resume as if the PC had been woken from a sleep state.

However, there are actually several components on the system that are required for connected standby, which we cannot suspend. These include drivers, some inbox and 3rd party services, and of course, the Metro style apps that use the background features mentioned earlier. Many of these provide functionality such as responding to user input when you return to your device, or providing network functionality. We enable these to run in connected standby after careful evaluation to ensure they do not have a significant impact on battery life. In addition, there are a set of processes that need to run in response to activity on the system. These processes are throttled to only run for short periods of time until a background activity is initiated, at which point they are allowed to run unimpeded. A great example of this is an antivirus product, which is often scanning in response to activity on the system. When there is background activity occurring such as receiving an incoming email via the background affordances, antivirus can run unimpeded during this time. But during the majority of the time when incoming network activity is not occurring, there is very minimal activity and therefore these components will be throttled to minimize their impact on battery life.

More about that see:
Windows 8: Connected Standby [Jerry Nixon, Microsoft Developer Evangelist, April 17, 2012]
Introduction to Connected Standby [Microsoft whitepaper, Oct 5, 2012] from which it is worth to include here the following definition of the value as measured by Microsoft:

Systems that support Connected Standby must meet the Connected Standby Windows Hardware Certification Kit (HCK) requirement for battery life. This requirement specifies that all Connected Standby systems must drain less than 5% of system battery capacity over a 16-hour idle period in the default shipping configuration. A certification test for this can be found in the Windows Hardware Certification Kit (HCK).

which means a 320 hours connected standby time as a minimum to pass the certification test.

So Microsoft did its job as well demonstrated by ARM based Windows RT tablets, such the Microsoft Surface. This cannot be said about Intel even two months after the Windows 8 launch.

It is also notable for this whole story that the ultra low power consumption to be achieved by the above hardware+driver software solution was indicated as one of the most important feature of Intel® Atom™ Processor Z2760: Tablets that Move as Fast as We Do [channelintel YouTube channel, Sept 27, 2012], that is right, back in September when the Z2760 platform was officially announced by Intel:

From Sandor Nacsa: This video was published when Intel announced the Clover Trail Atom as Z2760. It is remarkable that the first two testimonials are from Sansung and Acer, then there are other two testimonials from ZTE and Lenovo, whose Z2760-based tablets are still not on the market as of Dec 19, 2012. There are still no answers about their availability from the vendors.

Now we are close to Christmas and Dell and HP hit by Windows 8 tablet delays; Clover Trail could be the problem [Dec 19, 2012]

The first Intel Atom and Clover Trail Windows 8 tablets from Dell and HP were slated to launch in late 2012, but now look set to arrive as late as the end of January 2013.

News broke as Dell pushed back the shipping date of its Latitude 10 Windows 8 Pro tablet more than a month to January 22 with HP in turn now expecting its Envy x2 tablet to reach customers by December 21 at the latest.

Dell announced the delay by tweaking the availability date on its website but rumors had been flying around the availability beforehand, with a Dell customer telling InformationWeek that he had been informed the Latitude 10 was delayed.

HP, meanwhile, informed tech website CNET that its convertible Envy x2 Windows 8 Pro tablet, initially set to launch on November 14, will reach customers in time for Christmas.

“Customers can expect to receive an Envy x2 in January, if they order today,” said a customer representative, in an email to the source.

“Customers who ordered their units on Dec. 3 or prior are expected to receive their PC by Dec. 21 at the latest. HP expects additional units to ship in January.”

The exact cause of the problem is unclear, although the InformationWeek report suggests that PC makers are struggling to build Clover Trail drivers stable enough to pass Microsoft’s Windows Hardware Quality Labs testing (WHQL). Devices must pass this certification before being offered for sale.

Talking of Intel-powered Windows 8 tablets and the status of Lenovo’s own ThinkPad 2 also looks unclear.

The tablet has twice been delayed from its original launch date of October 26 but did pass FCC two weeks ago. The slate is listed on the Microsoft Store but its availability is not listed.

TabTimes has reached out to Lenovo for a comment on the matter but is yet to hear back from the Taiwanese PC maker.

Intel-based Windows 8 tablets see spotty availability [CNET, Dec 18, 2012]

Overall availability of Intel-based Windows 8 tablets and hybrids is spotty. While products based on the Intel Z2760 from Samsung (ATIV Smart PC 500T) and Acer (W510) are already available, others from Lenovo, Dell, and HP aren’t.

They are available indeed (note that those tablets corresponf to Intel’s refernce design):
http://www.provantage.com/acer-nt-l0kaa-001~AACEN1KA.htmimage

Acer Iconia W510-1422 vs. SamsungATIV Smart PC 500T [CE Arena, Nov 29, 2012]

The Acer Iconia W510-1422 and the Samsung ATIV Smart PC-500T are two of the more serious contenders of ASUS’s Transformer Pad series. They both feature the same processing unit, the brand new  Intel® Atom™ Z2760, which is running on the Clover Trail platform – specially designed for mobile devices running Windows 8 on a 32-bit architecture. Thus, performance wise, there are literally no differences between the two tablets: same RAM size, same storage space, same graphics unit, etc. However, minor fault lines start to appear when we take into consideration screen size, battery life and portability. That’s all there is between the two gadgets. Also, they essentially cost the same: $750 at the time of this review.

http://www.excaliberpc.com/621516/samsung-ativ-smart-pc-500t.htmlimage

However, in terms of the mobility and experience features mentioned in the introduction even these devices are not ready for the market! Here are quotes supporting that statement for the Samsung device* (as this was under more scrutiny because of higher expectations):
* for the other available Z2760 based device see: Acer Iconia W510 Win 8 Tablet gets 7/10 and 16hrs in Full Test [UMPCPortal, Dec 6, 2012]

Battery Life
[from here, but a lot of other sites contain this initial specification from Samsung, curiously now removed from the Samsung site, but originally was there according to this 3d party webcache]

  • Browsing (8Hrs), Video Playback (11Hr), Charging Time (320Min), Standby Time (600min [i.e. 10 hours]) [vs. Intel’s target of ~30 Days Standby]

BATTERY 
[From Microsoft Store, note that for Acer Iconia W510 there only “up to 9 hours”]
| 2-cell lithium-polymer (up to 14.5 hours)*

Samsung Ativ Smart PC 500T: Don’t Expect Any Miracles [Gizmodo UK, Nov 15, 2012]

The battery performance varied. When using it strictly as an RT tablet, the 500T was pretty efficient, making it through a whole day. But when using a bunch of browser tabs and apps in desktop mode, it drained a lot faster.

Samsung ATIV Smart PC 500T [Review] [CNET, Dec 4, 2012]

Pros

Great battery life! 8-10 hours easily,
Full sized USB port, mini HDMI port, micro SD memory port
Great screen, S pen digitizer, stereo speaker placed well, and sounds great, Windows 8 very responsive, Very peppy dual core Atom processor, yes peppy!.

Cons

Once in a while when coming out of sleep mode I have to refresh the wireless connection since it stalls with a limited connection. Windows network diagnostic handles that as well. Screens a finger print magnet, but aren’t all touch screens?

Hands-on Review: Samsung ATIV Smart PC 500T [Marketnews Canada, Dec 17, 2012]

Battery life is rated at 10 hours. In practice, it seemed very good. A single charge got me through most of my testing, and didn’t dissipate over many hours of idle ‘sleep’ time.

One other oddity: the 500T doesn’t come on instantly, like an Android or iOS tablet. Instead, there’s about a ten-second pause while Windows 8 resumes from Sleep [vs. the ms level latency from connected standby given in September by Intel, as could have seen above].

Customer Reviews for Samsung ATIV Smart PC 500T [Samsung US]

Nov 19, 2012 … Cons: Poor quality, Did not meet expectations, dock is unusable as it constantly disconnects, glitchy drivers = frozen pc = reboot often

Nov 29, 2012:

I was very excited to finally be able to buy this x86 Win8 tablet.
Unfortunately, the tablet has a WiFi problem that occurs after waking from sleep or a power on. Basically, it can’t connect to WiFi for about 2-3 minutes. Usually, you have to turn on/off AirPlane mode to get WiFi to work again.
For 2 weeks, I was installing every Samsung update but the issue was never fixed.
Other users have reported problems with the keyboard dock (I only had the tablet).
So, unless you want to go through a lot of frustration, wait for Samsung to resolve these issues before purchasing.

 

Dec 3, 2012 … Problems:
When I press the sleep button the tablet decides to automatically turn its self off completely. So basically I have to save everything before I turn the screen off expecting to have to turn it on from cold again. The only reason I’m not returning it because of this is how fast it boots up, but if its not fixed by the time my return date gets close it will go back.

Samsung ATIV Smart PC 500T [Softpanorama, Dec 15, 2012]

The tablet is way too fresh and, unless you are a beta addict, it might be beneficial to wait a couple of months and give time to Samsung [rather Intel] to fix the bugs. So buying it in the second quarter of 2013 is better then in 2012. Currently if you want just the Samsung tablet, go for it. But avoid the tablet + keyboard combo till Q2 of 2013.

CONTINUED: Intel-based Windows 8 tablets see spotty availability [CNET, Dec 18, 2012]

Intel-based Windows 8 tablets and hybrids from the world’s two largest PC vendors, Lenovo and Hewlett-Packard, have been experiencing delays.

A tablet from Hewlett-Packard running the full version of Windows 8 is expected to finally ship to customers, though a full Win 8 tablet doesn’t appear to be imminent from Lenovo.

HP’s Envy x2 laptop-tablet hybrid “convertible” was originally slated for November 14 availability but is now expected to reach customers soon, HP said.

“Customers can expect to receive an Envy x2…in January, if they order today. Customers who ordered their units on Dec. 3 or prior are expected to receive their PC by Dec. 21 at the latest,” an HP representative told CNET via e-mail.

“HP expects additional units to ship in January,” the representative added.

The Envy x2 uses a new power-efficient dual-core “Clover Trail” Z2760 system-on-a-chip from Intel that can run the full 32-bit Windows 8. This sets it apart from Windows RT devices, such as Microsoft’s Surface RT tablet, that run a limited version of Windows 8 and are not compatible with older Windows 7 software.

Overall availability of Intel-based Windows 8 tablets and hybrids is spotty. While products based on the Intel Z2760 from Samsung (ATIV Smart PC 500T) and Acer (W510) are already available, others from Lenovo, Dell, and HP aren’t.

HP, for instance, is also prepping an ElitePad tablet using the Intel Z2760 and the full 32-bit Windows 8, but that won’t be available until late January.

And Lenovo’s ThinkPad 2 Tablet — also based on the Intel Z2760 — has been delayed since October.

A Lenovo representative told CNET in November that the ThinkPad 2 Tablet would ship to consumers during the first week of December. But that doesn’t appear to be happening. For instance, the Microsoft Store’s ThinkPad 2 Tablet page gives no indication of availability.

And calls to Microsoft Store representatives today yielded two responses. One rep said the unit wouldn’t ship until January 31 and another said there is no shipment date at all.

As of this afternoon PT, Lenovo had not responded to a request to clarify the shipment date for the ThinkPad 2 Tablet.

Dell’s Latitude 10, also built around the Intel Z2760, lists an “estimated ship date” of January 21.

Dell, HP Windows 8 ‘Atom’ Tablets Delayed Until 2013 [InformationWeek, Dec 19, 2012]

Dell Latitude 10 among Windows 8 systems not yet available, as tablet makers struggle with drivers for energy-efficient Intel Clover Trail chip.

Dell and other vendors have pushed back until January the launch of Windows 8 tablets that use a new, energy-efficient Intel chip that was supposed to put Windows devices on an even footing with the iPad and Android tablets in terms of performance and battery life, but which is apparently causing big headaches for system builders.

Dell’s Latitude 10, which runs Intel’s Atom Z2760, or “Clover Trail” chip, was, as of early Wednesday, not available for shipping until Jan. 22nd, according to the company’s Web site. Only a month ago, Dell had been advertising a pre-Christmas ship date of Dec. 12. The tablet starts at $649, features Windows 8 Pro, and is aimed at business users.

A Dell customer who contacted InformationWeek said company representatives told him last week that the Latitude 10 is delayed. The customer, who asked not to be identified, originally placed his order on Nov. 28, paid for two-day expedited shipping, and was given a mid-December delivery date. Now, Dell is telling him the system won’t be available until January.

“Dell Latitude 10 is not officially launched. As soon as it will be launched it will be sent to you,” a Dell rep told the customer via live chat on Dec. 11, according to a transcript of the session. Dell’s Web site is continuing to accept orders for the Latitude 10, and does not indicate it is available only as a preorder. A Dell spokesman did not respond to a request for comment.

Dell isn’t the only vendor having trouble with Windows 8 systems built around Intel’s Clover Trail chip. Hewlett-Packard’s site shows that its Envy x2 convertible is not available until Jan. 8. The company originally said it would ship in November, within weeks of Windows 8’s launch on Oct. 26.

ASUS and Lenovo have not announced specific launch dates for their Clover Trail systems, the VivoTab Smart and ThinkPad Tablet 2, respectively. Of the top 5 PC makers, only Acer’s W510 Clover Trail tablet is available for immediate purchase, but it can only be had in limited quantities from Amazon and Microsoft’s online store.

Intel designed Clover Trail to take full advantage of Windows 8’s capabilities, including a key feature called Connected Standby. Connected Standby is supposed to give tablet users a smartphone-like experience by ensuring that their devices are always up to date with new e-mails, messages and other data, even when their systems are powered down. Clover Trail also promises all-day battery life.

But PC makers are having trouble building Clover Trail drivers that are stable enough to pass Microsoft’s Windows Hardware Quality Labs (WHQL) testing, sources say. Under Microsoft’s licensing terms, Windows systems must receive WHQL certification before they can be offered for sale. Intel has not responded to repeated inquiries about the situation.

Cindy Shaw, an analyst with research firm DISCERN, said the delay could hurt PC makers that specialize in enterprise sales. “HP and Dell are conceding they’ve given up on the consumer, so missing the holiday season is not that big of a deal. They’re not missing that magical time of the year,” said Shaw. “But the longer it takes for businesses to get their hands on evaluation units, the longer it’s going to take to translate into enterprise sales.”

Most PC makers currently offer Windows 8 systems, such as the Dell XPS 12, that use Intel’s older Core architecture instead of Clover Trail. Microsoft’s Surface RT tablet also runs an Intel Core chip. Core packs more power than Clover Trail, but does not support Connected Standby and consumes batteries more quickly. A Microsoft spokesperson said the company could not immediately offer a comment.

The future of the semiconductor IP ecosystem

December 13 Report:
– Intel’s next-gen SoC manufacturing process will be able to deliver the next Bay Trail Atom only for 2014 products (with higher end Haswell for H2 2013), and it is just a 26nm process in terminology used by the foundry industry not a 22nm one touted by Intel

Lesson from that: Intel may speak about its “22 nm SoC process” but given the late entry of its 32nm SoC process Atom product (Cover Trail) it would be better to assume that with Windows 8 tablets based on that it will affect only the 2014 tablet market, not earlier. This is what the latest leaks are suggesting as well. Meanwhile expect a low-power Haswell ULT based tablet PC push in the H2 2013 as described already in my Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices” [Nov 15 – Dec 11, 2012] post. As for the next year the real question is Can VIA Technologies save the mobile computing future of the x86 (x64) legacy platform? [this same blog of mine, Nov 23, 2012] For this watch what Allwinner vis-à-vis HTC on 2013 International CES [this same blog of mine, Dec 11, 2012] could bring in that respect, something much more than what is described in Allwinner A31 SoC is here with products and the A20 SoC is coming [USD 99 Allwinner blog of mine, Dec 10, 2012] or in $99 Android 4.0.3 7” IPS tablet with an Allwinner SoC capable of 2160p Quad HD and built-in HDMI–another inflection point, from China again [this same blog, Dec 3, 2012].    

– end of life of planar transistor and need to move to FinFET, but meanwhile FD-SOI to the rescue
– ARM Physical IP division via its upcoming IP is preparing with its foundry partners (TSMC, GLOBALFOUNDRIES and Samsung) an easier transition to FinFET

September 27 report:
– TSMC’s View of the Semiconductor IP Ecosystem
– Overall semiconductor IP market overview
– The CEVA case
– When sticking with the “Goliath”: ARM Holdings Plc
– When sticking with a “David”: CAST Inc.

Note: I am not discussing at all the most important development of the 64-bit ARM introductions as will devote to it a separate composite trend-tracking post on this blog.

Warning: These two reports are rather comprehensive and extensive on the given subject. When you will read these through your reward will be a deep and wide ranging understanding of this most actual issue for understanding the upcoming very dramatic changes in the further development of the whole ICT industry. To illustrate only some of the most related topics here is a copy of tags for this post:
14 nm, 14nm, 20 nm, 20nm, 22 nm, 22nm, 28 nm, 28nm, 3D devices, Allwinner, AndesCore, ARM Artisan IP, ARM Holdings, ARM Physical IP division, Artisan Physical IP Platform,Atom, BA22-AP, Bay Trail, Beyond BA22, big.LITTLE Processing, bulk CMOS, CAST Inc., CAST IP, CEVA, choice IP partner, Cortex A15, Cortex-A7, EnSilica eSi-3250, Fastec Imaging Corporation, Fastec TS3, FD-SOI, finFET,foundries, foundry and IP business model, foundry business, Freescale, Freescale ColdFire, general-purpose foundry business, GlobalFoundries, Haswell, Haswell-ULT, in-house IP blocks, inflection points, Intel, Intellectual Property, interface products, Internet of Things, IOT, IP suppliers, Kinetis, LEON3, licensable IP blocks, Lincroft, logic products, mainstream CMOS, Mali, MarketsandMarkets, MediaTek, memory compilers, MIPS32, mobile computing,Motomic, MT6588, MT6589, OpenRISC, planar transistor, POP, prime IP partners, Processor Optimization Pack,reusable subsystems, Samsung, semiconductor design, semiconductor intellectual property market, semiconductor IP, semiconductor IP ecosystem, semiconductor IP market, semiconductor IP revenue, silicon IP market, SoC manufacturing process, SoC process, Sodaville, SOI, standard cells, standard industry IP blocks, STMicroelectronics,system IP, tablet PC, transistor designs, Tri-Gate, Tri-Gate transistor, TSMC, TSMC IP Alliance, TSMC IP portfolio,TSMC Soft-IP Alliance, UMC, VIA Technologies, Z670


December 13 Report

– Intel’s next-gen SoC manufacturing process will be able to deliver the next Atom only for 2014 products (with higher end Haswell for H2 2013), and it is just a 26nm process in terminology used by the foundry industry not a 22nm one touted by Intel

Intel progressing in development of 14nm technology, says CTO [DIGITIMES, Dec 5, 2011]

Intel CTO Justin Rattner on December 4 said that Intel’s development of 14nm technology is on schedule with volume production to kick off in one to two years and development of 18-inch wafers is under way through cooperation with partners.

Rattner also noted that Intel’s aggressiveness over technology advancement will allow Moore’s Law to extend for another 10 years.

At the end of 2013, Intel will enter the generation of 14nm CPUs (P1272) and SoCs (1273), while expanding its investments at its D1X Fab in Oregon, and Fab 42 in Arizona, the US and Fab 24 in Ireland, and will gradually enter 10nm, 7nm and 5nm process generations starting 2015.

As for Intel’s competitors, Samsung is already set to enter 20nm in 2013 and is already working on its 14nm node, while Taiwan Semiconductor Manufacturing Company’s (TSMC) 20nm process [planar, i.e bulk CMOS, see below] will enter small volume production in the second half of 2013 with the first 3D-based FPGA chips to also start.

Globalfoundries has previously announced its 14nm FinFET process will start pilot production at the end of 2013 and enter mass production in 2014.

As for 18-inch wafers, Intel has invested in Holland-based ASML for its EUV technology, and related technologies are expected to start entering production in 2017.

Intel Has No Process Advantage In Mobile, says ARM CEO [Mannerisms on Electronics Weekly, Oct 24, 2012]

Intel has no advantage in IC manufacturing when it comes to manufacturing processes used for mobile ICs, Warren East, CEO of ARM, tells EW.

“This time last year there was a lot of noise from the Intel camp about their manufacturing superiority,” says East, “we’re sceptical about this because, while the ARM ecosystem was shipping on 28nm, Intel was shipping on 32nm. So I don’t see where they’re ahead.”

Furthermore, with the foundries accelerating their process development timescales, it looks increasingly unlikely that Intel will be able to find any advantage on mobile process technology in the future.

“We’re supporting all the independent foundries,” says East. That includes 20nm planar bulk CMOS and 16nm finfet at TSMC; 20nm planar bulk CMOS and 14nm finfet at Samsung and 20nm planar bulk CMOS, 20nm FD-SOI and 14nm finfet at Globalfoundries.

It gives the ARM ecosystem a formidable array of processes to choose from. “I’m no better equipped to judge which of these processes will be more successful than anyone else,” says East, “our approach is to be process agnostic.”

The important thing is that the foundries’ process roadmap is on track to intersect Intel’s at 14nm.

14nm will be the first process at which Intel intends to put mobile SOCs to the front of the node i.e. putting them among the first ICs to be made on a new process.

Asked if the foundries were prepping their next generation processes with the intention of putting mobile SOC at the front of the node, East replies: That’s the information we’re seeing from our foundry partners.”

Globalfoundries intends to have 14nm finfet in volume manufacturing in 2014, the same timescale as Intel has for introducing 14nm finfet manufacturing.

In fact, GF’s 14nm process may have smaller features than Intel’s 14nm process because, says Mojy Chian senior vp at Globalfoundries, because “Intel’s terminology doesn’t typically correlate with the terminology used by the foundry industry. For instance Intel’s 22nm in terms of the back-end metallisation is similar to the foundry industry’s 28nm. The design rules and pitch for Intel’s 22nm are very similar to those for foundries’ 28nm processes.”

Jean-Marc Chery, CTO of STMicroelectronics points out that the drawn gate length on Intel’s ˜22nm” process is actually 26nm.

Furthermore Intel’s triangular fins, which degrade the advantages of finfet processing could underperform GF’s rectangular fins which optimise the finfet advantage.

At the front of the GF 14nm finfet node will be mobile SOCs says Chian. GF has been working with ARM since 2009 to optimise its processes for ARM-based SOCs.

At TSMC the first tape-out on its 16nm finfet process is expected at the end of next year. That test chip will be based on ARM’s 64-bit V8 processor.

Using an ARM processor to validate its 16-nm finfet process should give TSMC’s ARM-based SOC customers great confidence.

Asked about the effects of finfets on ARM-based SOCs, East replies: “There’s no rocket science in what you get out of it. The question is does it deliver the benefits at an acceptable cost? You don’t get something for nothing. How much does it cost to manufacture? How good is the yield? And that, of course, affects cost.”

And so on goes Intel beating its head against the wall to get into the low-margin mobile business.

Recently Intel  said it expected its Q4 gross margin to drop 6% from Q3’s 63% to 57%. Shock, horror said the analysts

But if Intel succeeds in the mobile business, its gross margin will drop a lot more than that.

It’s a funny old world.

The Truth About Intel [Mannerisms on Electronics Weekly, Dec 5, 2012]

The darndest things are being said about Intel. The departure of its CEO is unexplained though I heard one person say it was voluntary.

Some people think Apple will put x86 in the iPad.

Others think Apple will drop x86 from iMacs so as to unify its processors across Phone, Pad and Mac.

Sure as eggs are eggs, both can’t happen

Some think Intel is going to become a foundry in a major way starting with Apple’s business – though it’s said the production cost of an Intel wafer is 3x that of a TSMC wafer.

Others say Intel may make wafers for a few customers but will not enter an industry servicing thousands of customers with hundreds of thousands of mask-sets.

Intel is to borrow $6 billion to buy its own shares something it has been doing for some time. I am too financially unsophisticated to understand why it does this but, even before this latest borrowing, Intel’s debt was already pretty high at over $7 billion and its cash rather low – for a cash generative, capex-gobbling company – at $10.5 billion.

The divi is generous – but the purpose of the generosity is to keep the share price up, then generosity hasn’t worked – Intel’s share price is under $20, unchanged in a decade.

The strategy of getting x86 into mobile phones seems mistimed when Apple and Samsung and now LG are designing their own mobile phone processors. This morning Samsung said it will start mass-roducing its own-brand 28nm processors for mobile devices early in 2013.

Intel’s fab situation at 22nm looks tough with 50% utilisation. A $500 million charge for this is expected to be taken in Q4.

Intel’s claim to have a manufacturing advantage looks unconvincing when its 22nm process turns out to have a drawn gate length of 26nm – virtually the same as volume processes at  leading foundries.

Where it matters, i.e. in the mobile market, Intel has no process advantage at all because Intel hasn’t yet put its mobile SOCs on its latest process at the start of a node. Intel’s mobile SOCs won’t enjoy early access to a new process node until the 14nm generation.

And was finfet the right bet?  20nm planar may still be made to work, while FD-SOI could turn out to be a better route than finfet

Meanwhile CEO Paul Otellini won the 2012 Open-Mouth-Insert-Foot Award by some spectacular boo-boos:

  • Saying Windows 8 wasn’t ready just before its launch, provoked Microsoft’s riposte that Intel’s power management software wasn’t ready for the launch of Surface, Microsoft’s Windows 8 tablet.
  • And endorsing Governor Mitt Romney in the recent US presidential elections probably irked the White House just as Otellini was earning some brownie points by sitting on a Presidential committee. They were much needed brownie points after Intel’s pasting from the FTC for ‘stifling innovation.’

And all the while and worst of all, the PC industry starts to contract and Intel has won few slots in the successor to the PC industry – the mobile device industry.

All in all a pretty rotten year for Intel despite taking in over $50 million in revenues and earning over $12 billion in profits.

Even silver linings can have clouds.

So the war is on as per: IBM, Intel face off at 22 nm [EE Times, Dec 10, 2012]

SAN FRANCISCO – Intel and IBM went head-to-head with their latest 22-nm technologies in back-to-back papers at the International Electron Devices Meeting (IEDM) here Monday (Dec. 10). Separately, a top Intel fab executive commented on increasing wafer costs and the company’s foundry business.

IBM said it is prototyping server processors in a new 3-D ready, 22-nm process technology it hopes will deliver 25 to 35 percent boosts over its 32-nm node. Intel retains an edge with several 22-nm chips already in volume production, and disclosure at IEDM of a variant of the process for SoCs for a wide range of applications.

The Intel paper showed support for “high drive current across the spectrum of leakage and a full suite of SoC tools,” Mark Bohr, head of Intel’s process technology development group, said in a brief interview. The process is geared for a much wider array of designs than that of IBM, he added.

Bohr said Intel’s 22-nm FinFET process is cost effective, contradicting report it is 30 to 40 percent more expensive than TSMC’s 28-nm planar process. The addition of FinFET adds only 3 percent to the cost of the process. Its use of 80-nm minimum feature sizes can be made with a single pass of 193-nm lithography tools, making it cost effective.

Projections from an IMEC keynote that 14-nm wafers will be 90 percent more expensive than 28-nm parts due to the lack of EUV lithography are inaccurate, Bohr asserted. The cost increase for 14-nm wafers at Intel “is nowhere near that,” he said.

“Cost per wafer has always gone up marginally each generation, somewhat more so in recent generations, but that’s more than offset by increases in transistor density so that the cost per transistor continues to go down at 14 nm,” Bohr said.

Separately, Bohr said Intel does have a growing foundry business that may include some higher volume applications than its current announced customers like FPGA startup Achronix. However, “we don’t intend to be in the general-purpose foundry business…[and] I don’t think the [foundry] volumes ever will be huge” for Intel, he said.

Intel’s paper laid out characteristics of Intel’s 22-nm process variation for SoCs (see chart below). It outperforms Intel’s 32-nm planar process by 20 to 65 percent and covers four orders of magnitude in leakage current, said co-author C.H. Jan.

image

The process provides 51 to 56 percent improvements in high voltage performance used for fast interfaces such Ethernet, HDMI and PCI Express. That’s more than twice the 20 percent boost typical in this area for a new Intel node, Jan said.

In addition, analog performance went up three-fold after declines in the past three nodes. Intel offers a small library of analog circuits tailored to the process including precision resistors, metal-in-metal capacitors and high Q inductors.

The process supports high and standard performance options as well as low and ultra low power ones. It also includes SRAM designs optimized for density, power and performance some of which now hit 2.6 GHz at 1V, up from 1.8 GHz at 32 nm.

Finally, Intel created two new transistor designs specifically for the 22-nm SoC variant. One is focused on low power and the other on high voltage for mixed-signal and analog circuits (see chart above).

image

For its part, IBM described its 22-nm process using partially depleted silicon-on-insulator. IBM “has prototyped a number of server processors” in the node that achieve latency below 1.5 ns and 750 MHz random clock cycles, said IBM researcher S. Narasimha.
Narasimha declined to give specifics of what IBM might achieve with the 22-nm node. However he did say the goal was to provide 25 to 35 percent boosts of the previous node which delivered server processors running up to 5.5 GHz and others with up to 80 Mbytes embedded DRAM.
IBM created an SRAM cell that measures 0.026 mm2 using the process. It also power supplies at 1.2V across a 550 mm2 die area, he said.
The process provides up to 15 levels of metal. The lowest five levels use 80-nm features, similar to the Intel process, and the top two levels support through-silicon vias for 3-D stacks with memory chips.
IBM will deliver a separate paper Wednesday on its 3-D stacking work.

Before that it was that Intel describes 22-nm SoC process, not chips [EE Times, Sept 13, 2012] 

Intel provided the first look at the system-on-chip variant of its 22-nm process technology in a talk at the Intel Developer Forum here Thursday (Sept. 13). However, it declined to provide details on the Atom-based SoCs for tablets and smartphones that will be made in that process.

“It’s fair to say Intel didn’t have much of a focus four or five years ago on SoCs, but that’s changed,” said Mark Bohr, director of Intel’s technology and manufacturing group in a process technology talk. “The success of Medfield [Intel’s 32-nm smartphone platform] shows we are learning to do it right, and I think we will have a technology advantage at 22 nm,” he said.

Intel showed at IDF six smartphones and four Windows 8 tablets using the Medfield SoC, made in an SoC variant of its 32-nm process. “There’s a lot more in the pipeline,” said Ticky Thakkar, a lead Atom designer in a separate talk on the mobile chips.

The company is already shipping to OEMs a 2-GHz version of Clover Trail, a follow on 32nm dual-core processor with boosted graphics. A 1.8-GHz version for tablets is also in the works.

Next up is Bay Trail, Intel’s first 22-nm SoC for tablets and smartphones, expected to debut at IDF Beijing [April 10-11, 2013 as per the IDF page of Intel]. “You’ll have to wait until next year to hear about it,” said Thakkar.

In a separate talk, Bohr described P1271, the 22-nm SoC process to be used for Bay Trail. It differs from the 22-nm CPU process now used for Intel’s Ivy Bridge processors by offering lower leakage logic transistors, higher voltage I/O transistors, denser upper layer interconnects and a set of precision resistors, capacitors and inductors.

image

“It’s not one set of features, but a menu of feature options—transistors, I/O, interconnects, passive elements and embedded memory,” Bohr said. “The [SoC] transistors go down to much lower leakage levels, but give up some performance,” he said.

image

The process has significantly better analog characteristics than Intel’s current 32-nm planar process. Designs make heavy use of 80-nm pitch features in lower metal layers, because they are the smallest features Intel can make at 22 nm without needing double patterning, he added.

Intel is running the process at three fabs, two in the U.S. and one in Israel. It will ramp soon in two other fabs.

Reminders: Silicon Technology for 32 nm and Beyond System-on-Chip Products [IDF 2009 presentation by Mark Bohr, Sept 23, 2009]

image     image

image   image

image

Products (Formerly Lincroft) [Intel page]
– Number of Products: 5
– Launch Range: Q2’11 – Q2’10
– Max TDP: 1.3W (Z600) – 3W (Z670)
Z600 (512K Cache, 1.20 GHz)
Z670 (512K Cache, 1.50 GHz)

while the first SoC product was the Sodaville which had no real market success (even specs are not listed on the ark.intel.com), and as such was not continued:
Intel Unveils 45nm System-on-Chip for Internet TV  [press release, Sept 24, 2009]

Intel Corporation today unveiled the Intel® Atom™ processor CE4100, the newest System-on-Chip (SoC) in a family of media processors designed to bring Internet content and services to digital TVs, DVD players and advanced set-top boxes.

The CE4100 processor, formerly codenamed “Sodaville,” is the first 45nm-manufactured consumer electronics (CE) SoC based on Intel architecture. It supports Internet and broadcast applications on one chip, and has the processing power and audio/video components necessary to run rich media applications such as 3-D graphics.

Intel® Atom™ Processor CE4100
The CE4100 processor can deliver speeds up to 1.2GHz while offering lower power and a small footprint to help decrease system costs. It is backward compatible with the Intel® Media Processor CE 3100 and features Intel® Precision View Technology, a display processing engine to support high-definition picture quality and Intel® Media Play Technology for seamless audio and video. It also supports hardware decode of up to two 1080p video streams and advanced 3-D graphics and audio standards. To provide OEMs flexibility in their product offerings, new features were added such as hardware decode for MPEG4 video that is ready for DivX* Home Theater 3.0 certification, an integrated NAND flash controller, support for both DDR2 and DDR3 memory and 512K L2 cache. The CE SoC contains a display processor, graphics processor, video display controller, transport processor, a dedicated security processor and general I/O including SATA-300 and USB 2.0.

Lincroft is mentioned in my Windows 7 tablets/slates with Oak Trail Atom SoC in December [Nov 1-24, 2010] post as:

Intel “is aiming to mass produce its Oak Trail platform for its Sleek Netbook segment targeting the tablet PC market in December 2010. The Oak Trail platform is a combination of Intel’s Lincroft (Atom Z6xx series) processor with Whitney Point chipset.”

The Oak Trail platform will sell at about US$25 with MeeGo [which was terminated as Nokia exited that joint effort 3 months later], and the price for Oak Trail and Microsoft’s Windows 7 will be higher.

so it was Intel’s first attempt to compete against the ARM-based tablet business, including the already successful iPad. As such it ended nowhere in terms of volumes. So adjustment followed as early as noted in my Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market [April 17, 2012] despite that fact that products based on Z670 Atom from Lenovo and Fujitsu, as the big names, and Evolve, Motion Computing, Razer and Viliv, as much lesser names, appeared on the market from April, 2011 on (you could find information about them in the post itself). The price was too high: e.g. $729 for the Evolve III Maestro C.

The next Atom based on Intel’s 32nm SoC process appeared in fact just recently, first appeared in Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [Oct 28, 2012] priced little lower, from $499 and up which is still overpriced relative to the ongoing 10” Android tablets. Moreover, it became available on in the second half of November and appeared on the Microsoft store to celebrate Cyber Monday (Nov 26) discounted to $399, which is the only competitive price. Now it is back to $499.

Lesson: Intel may speak about its “22 nm SoC process” but given the late entry of its 32nm SoC process Atom product (Cover Trail) it would be better to assume that with Windows 8 tablets based on that it will affect only the 2014 tablet market, not earlier. This is what the latest leaks are suggesting as well. Meanwhile expect a low-power Haswell ULT based tablet PC push in the H2 2013 as described already in my Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices” [Nov 15 – Dec 11, 2012] post. As for the next year the real question is Can VIA Technologies save the mobile computing future of the x86 (x64) legacy platform? [this same blog of mine, Nov 23, 2012] For this watch what Allwinner vis-à-vis HTC on 2013 International CES [this same blog of mine, Dec 11, 2012] could bring in that respect, something much more than what is described in Allwinner A31 SoC is here with products and the A20 SoC is coming [USD 99 Allwinner blog of mine, Dec 10, 2012] or in $99 Android 4.0.3 7” IPS tablet with an Allwinner SoC capable of 2160p Quad HD and built-in HDMI–another inflection point, from China again [this same blog, Dec 3, 2012].

End of Reminders


– end of life of planar transistor and need to move to FinFET, but meanwhile FD-SOI to the rescue

FinFETs or FD-SOI? [SemiMD (Semiconductor Manufacturing and Design), Dec 11, 2012]

By Ed Sperling
STMicroelectronics yesterday unveiled the results of its 28nm production silicon chips using fully depleted silicon on insulator technology, which it claims offers a 30% improvement in speed over bulk CMOS while using less power.

The debate over FD-SOI and FinFETs has been notching up over the past few months. While FinFETs and FD-SOI both promise improvements in controlling leakage current, the FinFETs are more difficult to design. FD-SOI uses the same design flow, although it does use a different SPICE model with better characteristics than the one used for bulk CMOS.

ST also used an ultra thin body and box (UTBB) and body biasing to boost performance, according to Joel Hartmann, the company’s executive vice president of front-end manufacturing and process R&D. Hartmann presented his results at an SOI Consortium-sponsored event at the IEDM show last night.

“We are using body bias to boost performance,” Hartmann said. “You can do that with FD-SOI. We also decreased the Vdd of the device by applying body biasing.”

What’s particularly attractive about FD-SOI is that is can be implemented at the 28nm node for a boost in performance and a reduction in power. The mainstream process node right now is 40nm. And while Intel introduced its version of a finFET transistor called Tri-Gate at 22nm, TSMC and GlobalFoundries plan to introduce it at the next node—whether that’s 16nm or 14nm. That leaves companies facing a big decision about whether to move all the way to 16/14nm to reap the lower leakage of finFETs, whether to move to 20nm on bulk, or whether to stay longer at 28nm with FD-SOI.

Hartmann said ST has seen improvements in analog running on FD-SOI, and for memory where the minimum voltage required is lower. He said ST’s road map calls for FD-SOI all the way down to 10nm, with voltages dropping from 0.9v at 28nm to 0.8v at 14nm and 0.7v at 10nm.

One of the sticking points in adopting FD-SOI has been market acceptance. Despite the promise of improved performance and/or lower power, bulk CMOS has been extended using a variety of techniques such as strain engineering and FD-SOI is considered more expensive. At 28nm and beyond, however, bulk has run out of steam, which is why Intel has opted for finFETs.

Still, FinFETs are more difficult to design and manufacture, and they potentially can add significantly to the cost of an SoC. FD-SOI, in contrast, uses the same design tools and reduces the number of masks and metal layers. ST is the first large fab-lite company to adopt FD-SOI and to move beyond just test chips. It remains to be seen which path the rest of the industry takes—and how quickly.

Increasing Levels Of Risk [SperlingMediaGroup YouTube channel, Dec 11, 2012]

Semiconductor Manufacturing & Design sits down with Mentor Graphics’ Jean-Marie Brunet to talk about double patterning, FinFETs, design rules at advanced nodes and why design for manufacturing (DFM) has suddenly become so popular.

Inflection Points [SperlingMediaGroup YouTube channel, Aug 14, 2012]

Semiconductor Manufacturing and Design talks with Paul Boudre, chief operating officer at Soitec, about FinFETs, industry inflection points, the end of life for planar transistors, bulk CMOS vs. SOI, the differences between fully depleted and partially depleted SOI, and the FD-SOI ecosystem.

See also: ST’s FD-SOI Tech Available to All Through GF [SemiMD (Semiconductor Manufacturing and Design), Oct 8, 2012]


– ARM Physical IP division via its upcoming IP is preparing with its foundry partners (TSMC, GLOBALFOUNDRIES and Samsung) an easier transition to FinFET

2012 ARM TechCon John Heinlein Interview [chipestimate YouTube channel, Dec 4, 2012]

Sean O’Kane, Producer/Host ChipEstimate.TV John Heinlein, VP Marketing, Physical IP Division at ARM

TSMC OIP 2012 – Sit down with John Heinlein, ARM [chipestimate YouTube channel, Dec 4, 2012]

Sean O’Kane, Producer/Host ChipEstimate.TV interviews at TSMC OIP 2012

An introductory type video for the roundtable video which is the next:
ARM 16/14nm FinFET Manufacturing Leadership [Charbax YouTube channel, Nov 1, 2012]

John Heinlein, Vice President of Marketing, Physical IP Division at ARM talks about the 14nm FinFET ARM Processor manufacturing technology that is being developed and that is starting to be manufactured next year.

 

ARM TechCon 2012 Executive Roundtable: Manufacturing [ARMflix YouTube channel, Nov 14, 2012]

Embedded in the beginning of this roundtable video there is a [4:19] minutes long Investing in FinFET Technology Leadership Presented by ARM [ARMflix YouTube channel, Nov 12, 2012] video in which Dr. Rob Aitken, R&D Fellow at ARM, discusses the need for new transistor technologies and how FinFET may be a solution. The embedded video is starting at [00:39] of the roundtable video. From this I will transcribe here the following part showing ARM’s commitment and strategy for FinFET in its Physical IP Division:

[02:30] ARM is taking a leadership position in FinFET IP development to accelerate the availability of FinFET IP in ARM partnership. We are working closely with foundry partners to develop prototype FinFET physical IP early in the process lifecycle. Using this prototype physical IP ARM is currently developing two different FinFET test chips both taping out in Q3 2012. These efforts continue ARM’s commitment to early development of silicon testing to reduce risk and time to market. Through our early engagement and prototyping work we actively provide feedback to our foundry partners to assure that FinFET technology is well suited to the requirements of energy efficient SoCs. ARM is further contributing to the technical community by publicly releasing fully pre-authorized FinFET transistor model based RTRs roadmap and is extending these models to more advanced FinFET designs. Internally we are modeling proprietary foundry technologies in support of the development work on those processes. This is just the beginning of ARM’s commitment to FinFET IP leadership. [03:46]

This ARM TechCon panel included the following speakers: Moderator: Dr. John Heinlein VP, Marketing, Physical IP Division ARM Panelists: Simon Segars EVP and GM, Processor and Physical IP Divisions ARM Gregg Bartlett SVP & CTO GLOBALFOUNDRIES Dr. Jong-Shik Yoon SVP, Logic Technology Development, Semiconductor R&D Samsung Dr. Shang-yi Chiang EVP & Co-COO TSMC

There are a number of other ARM specific information about its FinFET efforts in the September 27 report which is in the following major section. Now additional ones from its foundry partners:

Breathing New Life into the Foundry-Fabless Business Model [ARM’s SoC Design blog, Aug 21, 2012]

Early last week, GLOBALFOUNDRIES jointly announcedwith ARM another important milestone in our longstanding collaboration to deliver optimized SoC solutions for ARM® processor designs on GLOBALFOUNDRIES’ leading-edge process technology. We’re extending the agreement to include our 20nm planar offering, next-generation 3D FinFET transistor technology, and ARM’s Mali™ GPUs.
Our collaboration with ARM goes back many years, and its evolution parallels some of the critical developments in the larger semiconductor industry during the same timeframe. ….

This early and deep collaboration has resulted in several significant milestones, including the world’s first foundry optimized Cortex-A9 processor, POP™ IP for the Cortex-A9 processor operating at 1.6GHzon our 28nm-SLP technology, and a demonstration of more than 2GHzon our 28nm high-performance technology. This platform builds on the existing ARM Artisan® physical IP platforms for GLOBALFOUNDRIES processes at 65nm, 55nm and 28nm.

Now we are extending this collaboration to include true joint optimization for 20nm technologies and beyond, as well as a new focus on GPUs, which are becoming increasingly important in today’s smart mobile devices. The TQV strategy has already been scaled to 20nm and is an integral part of our process development, with a 20nm test chip implementation currently running through our Fab 8 in Saratoga County, N.Y.

And while we are seeing great dividends from this collaboration, the real hard work is only just beginning. We are now leveraging historical synergies from 28nm and 20nm planar technology to enable a smooth migration to next-generation, three-dimensional FinFET technology. One of the well publicized benefits of FinFET technology is its superior low-power attributes. The intrinsic capability of the 3D transistor to operate at a lower Vdd translates to longer battery life, which is heavily sought after in performance-hungry mobile computing applications. Our collaboration is focused tightly on this sweet spot in the market, where designers are looking for the optimum combination of performance, power-consumption, area, and cost. Our co-development work with ARM will enable a faster time to FinFET SoC solutions for customers using ARM’s next generation of mobile SoC IP for both CPUs and GPUs.

So clearly the foundry-fabless business model is not collapsing, but rather adapting to meet the challenges of today. Success will be a result of much closer joint development at the technology definition level, early engagement at the architectural stage, and a more integrated and cooperative ecosystem – precisely the kind of collaboration that we’re demonstrating with our valued partner ARM.

Guest Partner Blogger:

Attached ImageMike Noonen is Executive Vice President, Worldwide Marketing and Sales, for GLOBALFOUNDRIES. In this role, he is responsible for global customer relationships as well as all marketing, sales, customer engineering and quality functions.

GLOBALFOUNDRIES at ARM Techcon 2012 [Charbax YouTube channel, Oct 30, 2012]

Talking about the fabrication of ARM Processors, from 28/32nm HKMG to 20nm to upcoming FinFET 14nm process technologies with Subramani Kengeri, Vice President, Technology Architecture, Office of the CTO, Paul Colestock, Director, Strategic Marketing and Srinivas Nori, Director, Marketing, SoC Innovation at GlobalFoundries at ARM Techcon 2012.

If interested in the GLOBALFOUNDRIES Fireside Chat mentioned here watch the separate video GLOBALFOUNDRIES Fireside Chat at ARM Techcon 2012 [Charbax YouTube channel, Oct 31, 2012] with the following content:

“The insatiable need for functional and feature integration on to Mobile SoCs, coupled with ever increasing performance demands has challenged the Foundries and Fabless Semiconductor companies alike. While the diminishing geometries of the process technologies have kept pace to address this challenge, the solutions for leakage power dissipation continued to fall behind threatening to thwart the advances in Mobility. The ground-breaking FinFET technology is the right low-power solution and will serve as an inflection point to further enable SoC-level integration and technological advances in this exciting era of Extreme Mobility. The panel will discuss how the next generation of FinFET technology will change the mobile revolution again.”

Speakers

Dean Freeman, Research VP, Gartner Research
Bruce Kleinman, VP, Product Marketing, GLOBALFOUNDRIES
Subramani Kengeri, Vice President, Technology Architecture Office of the CTO, GLOBALFOUNDRIES
Srinivas Nori, Director. SOC Innovation, GLOBALFOUNDRIES
Dipesh Patel, Deputy General Manager of the Physical IP Division, ARM

TSMC’s information about collaboration with ARM in FinFET space was already included in the second major section (September 27 Report) beginning from ARM and TSMC Collaborate to Optimize Next-Generation 64-bit ARM Processors for FinFET Process Technology [ARM press release, July 23, 2012] part in the text. As an update to that I will include here:  TSMC Accelerates finFET Efforts [SemiMD (Semiconductor Manufacturing and Design), Oct 16, 2012]

In response to its foundry rivals, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) has updated and accelerated its process roadmap. The world’s largest silicon foundry has accelerated its 16nm finFET efforts by one quarter and added a 10nm finFET technology to the roadmap.

TSMC also plans to take the “modular fin” approach for its 16nm finFET. It is also looking at 450mm fabs at the 10nm node, according to a TSMC executive, who also stressed that collaboration is a key to success. Customers must collaborate earlier in the design cycle and “at a new level,” said Mark Liu, executive vice president and co-chief operating officer at TSMC, during a keynote at the company’s Open Innovation Platform Ecosystem Forum in San Jose, Calif. on Tuesday (Oct. 16). “We need to align strategically.”

At present, TSMC is ramping up its 28nm process technology. The next process on the roadmap, dubbed CLN20, is a 20nm planar technology. The reference flow for CLN20 is ready and the process is due out in 2013.

[See: TSMC 20nm and CoWoS™ Design Infrastructure Ready [TSMC press release, Oct 9, 2012]

Then, as previously announced, TSMC will enter the finFET transistor era. The company’s initial finFET process, dubbed CLN16FF, is being targeted and branded for the 16nm node. TSMC’s 16nm finFET process is slated for risk production in November of 2013, Liu said. Risk production has been accelerated from February of 2014 to November of 2013.

In an interview after the keynote, Liu said TSMC will take a “modular fin” approach in finFETs. TSMC will marry a 16nm fin with a 20nm backend. “It has 20nm design rules,” he said.

TSMC will also implement a triple-patterning strategy for 16nm finFETs. The company is also keeping its options open. It is exploring 193nm immersion extensions, extreme ultraviolet (EUV) lithography and multi-beam. “At this point, we have both (193nm extensions and EUV) under development,” he said. “Maybe multi-beam will save the day.”

TSMC’s 16nm finFET design solutions, including the EDA tools and IP, will be ready by the first quarter of 2013.  “We have pulled in our design enablement solutions,” said Cliff Hou, senior vice president of TSMC, during a separate keynote at the event. The first version of the design solutions, dubbed V0.1, is slated for introduction in January. The second version, V1.0, is due out in October of 2013.

Meanwhile, during his keynote, Liu presented a slide that denoted CLN10FF, which is a second-generation finFET for the 10nm node.  TSMC’s 10nm finFET process is expected to move into risk productionclose to the end of 2015,” he said.

Also at 10nm, TSMC is looking to enter the 450mm fab era. It is likely TSMC will have a 450mm fab or pilot line in the second phase of 10nm. “There are no show stoppers,” he said. “All of the equipment companies are developing 450mm.”

Other foundries have also accelerated their finFET roadmaps. For example, GlobalFoundries Inc. recently rolled out its finFET technology for the 14nm node. GlobalFoundries is taking a “modular fin” approach with its bulk finFET offering, dubbed 14nm-XM. The 14nm-XM combines a 14nm-class fin with its 20nm back-end-of-line (BEOL) interconnect flow.

By taking the modular approach, the company has accelerated its process roadmap by a year. Early process design kits (PDKs) are available, with customer product tape-outs expected in 2013. Production, which is slated for 2014, will take place within GlobalFoundries’ new 300mm fab in New York.

Another foundry vendor, United Microelectronics Corp. (UMC), is taking a similar modular finFET approach. UMC licensed finFET technology from IBM. Samsung Electronics Co. Ltd. has yet to elaborate on its finFET strategy.  Meanwhile, Intel Corp. is already ramping up its 22nm process, which is based on finFET transistors. Intel is providing foundry services for select customers, who plan to ship products based on finFETs.

 


September 27 Report

In my role, I serve as one of the members of the Global

Semiconductor Alliance (GSA) Steering Committee on Intellectual Property, where we work to share best practices and continue to improve the IP ecosystem for the benefit of the entire semiconductor industry. As part of this role, I’ve observed a trend in the news speculating on the future of the foundry and IP industry, and I recently posted my thoughts on the GSA blog site, and I’d like to share them with you here as well.

In 1897, after a journalist erroneously reported the passing of famed author and humorist Mark Twain, Twain replied in his typical wit with the now famous retort: “the rumor of my death has been greatly exaggerated.”  Like the then very alive author, recent reports have speculated on the demise of the foundry and IP business model.  I similarly think such talk is pure nonsense.  Across many metrics the foundry and IP space is alive and well and providing unprecedented capabilities to semiconductor companies. [his factual argumentation for that you can find much below, in the <<sticking with the “Goliath”>> section]

Dr. John Heinlein, Vice President, Marketing, ARM Physical IP Division on May 16, 2012


imageTSMC’s View of the Semiconductor IP Ecosystem 

To understand the semiconductor IP ecosystem one should first understand it via the IP related efforts of far the biggest and most influential foundry, TSMC (as their success most heavily depends on a vibrant and quality IP ecosystem):

ChipEstimate.com DAC 2012 IP Talks presenter Dan Kochpatcharin on TSMC OIP and IP Quality [chipestimate YouTube channel, June 26, 2012]

Dan Kochpatcharin, Deputy Director, IP Portfolio Marketing, TSMC. IP Talks presenter with ChipEstimate.com at DAC 2012 in San Francisco. TSMC OIP (Open Innovation Platform alliance ecosystem) and IP Quality. For more information about TSMC , go to: http://www.chipestimate.com/tsmc/

There are 41 IP partners in the semiconductor IP specific TSMC IP alliance program of TSMC OIP (Open Innovation Platform alliance ecosystem) and also have 20-25 IP partners directly supported but not part of the IP alliance program.

image

Among those the winners of the 2011 TSMC IP Partner Award of Year were:

Note that for such an IP excellency the organisations behind are not big at all. Dolphin Integration SA is a 190 people company. eMemory employs around 200 people as per the award news release. While ARM Holdings Plc had 2,253 full-time employees alltogether at June 30, 2012, considering their Physical IP Division (PIPD) having just 11% of the overall revenue the number of employees there would probably not exceed 300. Artisan Components Inc. (US) acquired by ARM Holdings for not less than 1 billion US$ in Dec 2004 (because of “collaboration between the two companies on ARM’s next-generation MPU core, code-named “Tiger”, in 2005 becoming Cortex-A8) had 72 employees in 1997, so it is likely from historical point of view as well (considering even ARM’s heavy investment later on).

As far as Synopsys is concerned, 9 months ago it had ~6800 employees, but its portfolio is rather large (implementation, verification, IP, manufacturing and FPGA solutions), and in addition to the Interface IP the company has Analog IP and Memories and Logic Libraries as well in the overall DesignWare IP portolio. To understand that split let’s take the following “Top Interface, Analog, and Embedded Memory IP Vendor” presentation slide from Synopsis Investor Day 2011 presentation, referring to a Gartner, March 2011 report, which is indicating $104.1M interface IP revenue for 2010:image
which is ~ 7.5% of the overall revenue of Synopsis (having $1.38B for the fiscal year 2010 ending Oct 31, 2010 when it had 6707 employees) which could mean ~500 employees related to Interface IP activities taken proportionally to the revenue.

And here are the number of titles in TSMC IP portfolio also vs. other foundries:

image

See also:
TSMC Extends Open Innovation Platform™ [TSMC press release, June 7, 2010]
TSMC Expands IP Alliance to Include Soft IP [TSMC press release, Oct 5, 2010]
Atrenta and TSMC IP Quality Initiative Gains Broad Industry Acceptance [Atrenta press release, March 5, 2012]: “10 intellectual property (IP) providers have qualified their soft IP for inclusion in the TSMC 9000 IP library using the Atrenta IP Handoff Kit. Those companies, part of TSMC’s Soft-IP Alliance Program, include Arteris, Inc.; CEVA; Chips&Media, Inc.; Digital Media Professionals Inc. (DMP); Imagination Technologies; Intrinsic-ID; MIPS Technologies, Inc.; Sonics, Inc.; Tensilica, Inc.; and Vivante Corporation. The participating companies are able to provide quantitative information to TSMC’s customers regarding the robustness and completeness of their soft or synthesizable semiconductor IP that is part of the TSMC 9000 IP library.
Imagination Technology Forum: Advanced SoC solutions in cooperation with TSMC [detailed DIGITIMES report, June 28, 2012]: “Not only will we be introducing our latest graphics processing IP, we will also talk about video, displays, multi-threaded cores [Meta SoC Processors], and wireless processors [Ensigma Universal Communications Core Processors (UCCPs)]. We hope that industries can further understand that Imagination is a company that provides complete SoC solutions.
TSMC Open Innovation Platform® Ecosystem Forum, Technical Presentation Abstracts image[TSMC, Oct 18, 2011]
ARM Physical IP Overview [ARM presentation, Sept 9, 2011]
Leveraging Advanced Physical IP to Deliver Optimized SoC Implementations at 40nm and below [ARM presentation, Nov 19, 2010] [Meta SoC Processors]
ARM Announces Processor Optimization Pack [ARM press release, Nov 9, 2010]

ARM today announced the immediate availability of the ARM® Cortex™-A9 Processor Optimization Packs (“POPs”).  Processor Optimization Packs leverage ARM Artisan® physical IP to enable customers to achieve technology leading performance or power targets on their Cortex-A9 implementations in the shortest time to market. A silicon-proven POP is available now TSMC(R) 40nm G process technology.  The Cortex-A9 POP on TSMC 40nm LP process technology will be available to customers in January 2011.
The Cortex-A9 Processor Optimization Packages contain three elements: ARM Artisan optimized logic and memory physical IP for a specific process technology, supported by implementation knowledge and ARM benchmarking.  Combined together the POP allows SoC designers to optimize Cortex-A9 designs for maximum performance, lowest power or to develop customized solutions balancing power and performance for their specific application.

– Overall semiconductor IP market overview

The key players listed by the market researcher MarketsandMarkets (with ChipEstimate.com links wherever possible, where “Prime IP Partners” are highlighted in bold) are the following companies:

ARM Holdings Plc (UK)
Atmel Corporation
CAST Inc.
CEVA Inc. (Israel, Choice IP Partner)
Coreworks S.A. (Portugal), but see Homepage, Technologies, Products, Rapidity
Dolphin Integration Inc.
Imagination Technologies Inc.
Lattice Semiconductor, but see its IP website
Mentor Graphics, Inc.
MIPS, Inc., but see Processor Cores, Interconnect IP, and MIPS Alliance
MoSys, Inc., but see unparalleled bandwidth performance for next gen networking systems
NXP Semiconductors N.V
Rambus, Inc.
Silicon Image, Inc.
Synopsys, Inc.
Tensilica, Inc. (Choice IP Partner)
Triad Semiconductor, Inc., but see Mixed Signal ASIC, Engagement ModelIP Catalog, ARM Powered VCAs
VeriSilicon, Inc. (Choice IP Partner)
exited: Wipro-NewLogic, Inc., but see RivieraWaves (France) as a successor
 
Notes:
  1. ChipEstimate.com Chip Planning Portal Overview
    The ChipEstimate.com chip planning portal is an ecosystem comprised of over 200 of the world’s largest semiconductor design and verification IP suppliers and foundries. These companies all share in the common vision of helping the worldwide electronics design community achieve greater profitability and success. To date, a diverse global audience of over 27,000 users has joined the ChipEstimate.com community and has collectively performed over 100,000 chip estimations. ChipEstimate.com is a property of Cadence Design Systems, Inc. (NASDAQ: CDNS), the leader in global electronic-design innovation.
  2. Reasons for missing Coreworks S.A, Lattice Semiconductor, Mentor Graphics, Inc., MIPS, Inc., and MoSys, Inc. on the ChipEstimate.com portal are quite diverse. You can find them via the additional linked explanations, typically marked as “but see”.

Overall the summary of the Semiconductor Intellectual Property Market, Silicon IP Market (2012-2017): Global Forecasts & Analysis [MarketsandMarkets, April 2012] states that:

The growth trend of the Semiconductor IP market revenue can be observed by the CAGRs over various time periods. The CAGR of the Semiconductor IP market from 1997 to 2002 was 17.82% while the value from 2002 to 2007 stood at 11.54%. Post 2007, the market again picked up growth and the forecasted CAGR from 2012 to 2017 is estimated to be 14.47%. In 2012, the global Semiconductor IP market is estimated to be $2.90 billion. The percentage share of Semiconductor IP industry in the global revenue for semiconductors was approximately between 0.3% and 1.0% over the years; stood at 0.71% in 2011, and is estimated to increase to 0.85% by the end of 2012 and 0.99% by the end of 2017.

In the Analyst Briefing Presentation of the same report it is stated that:

Coming to the statistics, in 2011, the global Silicon IP Market stood at $2.25 billion, while the global semiconductor industry revenue was at $315 billion. Both these markets are estimated to reach $2.90 billion and $340 billion respectively by the end of 2012.

which means that while the global semiconductor industry is expected to grow just 6.3% this year the Semiconductor IP Market is estimated to grow by 28.9% ! So the latter is quite healthy although still a tiny part of the whole industry.

Gartner presented last year the following, revenue based Semiconductor IP Market view:image
Source: Synopsis Investor Day 2011 presentation, referring to a Gartner, March 2011 report

Note that the $231.6M semiconductor IP revenue was just ~15% of the CY2010 overall revenue (~1.5B estimated at max) of Synopsis where Core EDA (Electronic Design Automation) was and is the bulk of the revenue by far: Core EDA revenue was $959M in FY2010 and $980.7M in FY2011. Relative to that the overall Semiconductor IP segment was and is a double digit growth area for Synopsis. Since the company is following a strong “M&A strategy to broaden TAM and provide incremental revenue growth” in non-Core EDA areas the semiconductor IP revenue will probably grow at the same pace in the coming years. Therefore its #2 position will be maintained on this market, especially as it has almost no competitors (only Mentor Graphics IP) among Top 10 (those companies having not less than 71.1% share of market), while the #3 Imagination Technologies’ strongest competitor is the #1 ARM Holdings, as well as the strongest competitor of the #4 MIPS Technologies is the same #1 ARM Holdings.

So overall the market is quite mature, with well established and strong leaders already having the most of the business for themselves. The #1 ARM Holdings is also having a strong ecosystem of its own, which is providing opportunities for not less than 53 small silicon IP vendors outside the Top 10 as well. See: SoC IP [providers in ARM Connected Community Program].

I’ve edited a more descriptive list of that in PDF, which you can download from here. Below I’am providing an excerpt from that, with strongest players in ARM’s own ecosystem in the sense of relying on ARM’s Artisan Physical IP via the IPNet Partner Program (denoted by +) and/or TSCM IP Alliance Program (denoted by *):

Analog Bits*: the leading supplier of low-power, customizable analog IP for easy and reliable integration into modern CMOS digital chips. Our product range includes precision clocking macros such as PLL’s & DLL’s, programmable interconnect solutions such as multi-protocol SERDES/PMA and programmable I/O’s as well as specialized memories such as high-speed SRAMs and T-CAMs.
Low Power Wide Range PLL – Common Platform 32LP
Arteris*: Arteris invented Network on Chip technology, offering the world’s first commercial solution in 2006. Arteris connects the IP blocks in semiconductors from Qualcomm, Samsung, TI, and others, representing over 50 System on Chip devices. … Arteris is a private company backed by a group of international investors including ARM Holdings, Crescendo Ventures, DoCoMo Capital, Qualcomm Incorporated, Synopsys, TVM Capital, and Ventech.
C2C™ Chip to Chip Link™ Inter-chip Connectivity IP
FlexNoC Network-on-Chip Interconnect IP
FlexWay Interconnect IP
Aurora VLSI, Inc. +: provides AMBA specification-based SoC/ASIC IP components, peripherals, subsystems, and platforms. … Aurora provides a full set of popular communications and SoC IP cores for ARM and AMBA Bus-based SoCs.
AMBA Peripherals- Ethernet, PCI, USB, IEEE1394, memory and flash controllers, interrupt controller, timers, counters, GPIOs, etc 
AMBA SOC Platform (Configurable)
AuthenTec*: a leading provider of mobile and network security. … AuthenTec’s products and technologies provide security on hundreds of millions of devices, and the Company has shipped more than 100 million fingerprint sensors for integration in a wide range of portable electronics including over 15 million mobile phones. Top tier customers include Alcatel-Lucent, Cisco, Fujitsu, HBO, HP, Lenovo, LG, Motorola, Nokia, Orange, Samsung, Sky, and Texas Instruments.
SafeXcel™ IP-06 KASUMI Crypto Core Family
SafeXcel™ IP-115 HDCP2 Content Protection Crypto Module
SafeXcel™ IP-123 Secure Platform Crypto Module
SafeXcel™ IP-154 Public Key Infrastructure Cores
SafeXcel™ IP-16 3DES Crypto Core Family
SafeXcel™ IP-160 MACsec Security Engine w/ Classifiers
SafeXcel™ IP-18 CAMELLIA Crypto Core Family
SafeXcel™ IP-197 Inline Security Packet Engine
SafeXcel™ IP-28: Public Key Accelerator Cores
SafeXcel™ IP-3X AES Crypto Core Family
SafeXcel™ IP-46 SNOW 3G Crypto Core Family
SafeXcel™ IP-48 ZUC Crypto Core Family
SafeXcel™ IP-57 HASH/HMAC Core Family
SafeXcel™ IP-60 MACsec Frame Engine
SafeXcel™ IP-62 MACsec/IPsec GCM Packet Engine
SafeXcel™ IP-76 True Random Number Generator
SafeXcel™ IP-97 Look-Aside Security Packet Engine
CEVA, Inc.*: the leading licensor of digital signal processor (DSP) cores, multimedia and storage platforms to leading semiconductor and electronics companies worldwide. … This portfolio includes a family of programmable DSP cores, DSP-based subsystems and application-specific platforms including multimedia, audio, Voice over Packet (VoP), Bluetooth, Serial ATA (SATA) and Serial Attached SCSI (SAS).
Application Platforms: for Mobile Multimedia Applications
The Only Silicon-proven Programmable Solution Supporting H.264 codec up to D1 resolution! … Complete, Low-Cost Audio Solution … Complete, Single Processor VoIP Solution
DSP Cores: The CEVA-X family of cores is based on CEVA’s latest pioneering DSP architecture. This architecture offers best-in-class performance, scalability, and lowest cost-of-development for DSP deployment … CEVA-TeakLite Architecture DSP core.
System Platforms: Broad set of DSP peripherals extendible through APB … tailored for specific cores of the CEVA-X architecture framework … High performance multimedia platform … CEVA-TeakLite Architecture DSP subsystems
Chips&Media,Inc. *: video codec technologies cover the full line-up of video standards such as MPEG-2, MPEG-4, H.263, H.264/AVC and VC-1 from CIF to HD resolution.
BODA7Series-HD Video Decoder IP
BODA9Series-Dual HD Video Decoder IP
CODA7Series-HD Video Codec IP
CODA9Series-Dual HD Video Codec IP
Denali Software, Inc. +: Databahn™ products provide optimal control and data throughput for external DRAM (DDR2, DDR3, LPDDR1, LPDDR2) and Flash memory devices.
Databahn NAND Flash Controller
Databahn(TM) PCI Express Controller IP Core
Databahn(TM) SDR/DDR1/DDR2/DDR3/LPDDR2 Solutions
eMemory Technology Inc. *: focused on the development of logic embedded non-volatile memory (NVM) such as OTP, MTP, and Flash. eMemory has published 186 patents. There are over 120 companies who have implemented our technologies and IP’s worldwide.
NeoBit
NeoFlash
Intrinsic-ID *: semiconductor IP and embedded software products based on Hardware Intrinsic Security. Our solutions revolve around patented Physically Unclonable Function (PUF) technology, where a secret key is extracted like a silicon biometric or fingerprint from silicon hardware directly and only when required.
Attackers have nothing to find because no key is stored nor present in the power down state. … Headquartered in Eindhoven, The Netherlands, Intrinsic-ID was founded in 2008 as a spin-out of Royal Philips Electronics and has been deployed in Philips’ production environment.
AES
HMAC-SHA-256
iRNG
Quiddikey™ in Hardware
SHA-256
Kilopass *
XPM: embedded, one-time programmable (OTP) non-volatile memory (NVM). … Over 70 customers have integrated XPM™ in over 200 designs from 180nm to 40nm. Applications range from a few hundred bits for unique ID to prevent cloning to multiple instances of 1Mb for program code storage.
PLDA, Inc. *: a leading provider of semiconductor intellectual property (IP) specialized in high-speed interconnect protocols and technologies.
AMBA 2 AHB to PCI Bridge
AMBA 2 AHB to PCI Express Bridge
AMBA 2 AHB to USB 3.0 Device
AMBA 2 AHB to USB 3.0 Host
AMBA 3 AXI to PCI Express Bridge
PCI Express IP Core with AXI interface
Rambus Inc. *: one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory architectures.
XDR Memory: architecture … proven in high-volume, cost-competitive applications. Operating at 3.2Gbps, XDR DRAM provides 6.4GB/s of peak memory bandwidth with a single, 2-byte wide device.
Renesas Technology America, Inc. *
Renesas Application Specific Products: SoC Architecture for Multimedia Controller Chip. Features: Multiple ARM 9 cores, Graphic Controller on chip, USB on chip, Memory Card Interface, Standard high-performance MCU peripherals, JTAG. Easy to customize with proven architecture and IP.
Sidense Corp. *: Sidense Corp. provides secure, dense and reliable non-volatile, one-time programmable (OTP) memory IP for use in standard-logic CMOS processes, with no additional masks or process steps required and no impact on product yield. Sidense’s patented one-transistor 1T-Fuse™ architecture  provides the industry’s smallest footprint, most reliable and lowest power Logic Non-Volatile Memory IP solution and offers an alternative solution to Flash, mask ROM and eFuse in many applications.
SiPROM
SLP:
ULP
Silicon Image GmbH *+
Multimedia Platform IP: complete system solutions for Mobile Communication including MPEG-4 Encoding and Decoding for video chat and video conferencing applications. For Multimedia the offering incudes solutions for DVD Players and Set Top Boxes. Other leading edge technologies include a broad portfolio of security IPs and IP cores of professional networking applications.
Silicon Interfaces +
Silicon Cores – Core to the Intelligent Systems(TM): 12+ IP cores targeted to areas such as Networking, Wireless, Communication and Interconnect, and around 5+ Verification IPs using Industry standard Verification Methodology
Sonics, Inc. *+:  a pioneer of network-on-chip (NoC) technology and today offers SoC designers the largest portfolio of intelligent, on-chip communications solutions.
MemMax AMP: an intelligent Dynamic Random Access Memory scheduler designed for use with any AMBA AXI compliant bus fabric and memory controller.
MemMax Scheduler: an intelligent Dynamic Random Access Memory scheduler designed for use with an OCP compliant memory controller.
SonicsGN: Sonics’ 4th generation, configurable, on-chip network enabling the design of advanced SoC communications networks using a high-speed scalable fabric topology structure. As the industry’s highest frequency NoC available today, SGN allows SoC designers to deliver high-performance, simultaneous application processing for smart phones, mobile video and tablets.
SonicsLX: On-chip Network contains a high performance advanced fabric with data flow services for the development of complex SoCs.
SonicsMX: an actively decoupled, non-blocking, intelligent internal interconnect that enables designers to implement multiprocessor SoC architectures using combinations of similar or heterogeneous processing elements.
SonicsSX: On-chip Network contains a high performance, advanced fabric and a comprehensive set of data flow services for the development of complex, multicore and multi-subsystem SoCs.
Synopsys *+:  world leader in electronic design automation (EDA), supplying the global electronics market with the software, intellectual property (IP) and services used in semiconductor design, verification and manufacturing. … Synopsys is headquartered in Mountain View, California, and has more than 70 offices located throughout North America, Europe, Japan, Asia and India.
DesignWare Cores: Synopsys is a leading provider of high-quality, silicon-proven interface and analog IP solutions for system-on-chip designs. Synopsys’ broad IP portfolio delivers complete interface IP solutions consisting of controllers, PHY and verification IP for widely used protocols such as USB, PCI Express, DDR, SATA, Ethernet, HDMI and MIPI IP including 3G DigRF, CSI-2 and D-PHY. The analog IP family includes Analog-to-Digital Converters, Digital-to-Analog Converters, Audio Codecs, Video Analog Front-Ends, Touch Screen Controllers and more.
DesignWare System-Level Library: a portfolio of tool-independent transaction-level models (TLMs) for the creation of virtual platforms. Virtual platforms are fully functional software models of complete embedded systems enabling pre-silicon software development and software-driven system validation.

As one could there 18 silicon IP vendors with very strong (Artisan and/or TSMC IP Alliance) ties in ARM’s own ecosystem, and out of them 5 (AuthenTec, CEVA, Rambus, Silicon Image and Syopsys) are in the Top 10 group of providers.

With that we could finish the overall semiconductor IP market overview.


– The CEVA case

A lot of Silicon IP vendors are highly focussed. Probably the most successful among them is CEVA Inc. (Israel, Choice IP Partner):

CEVA DSP – Company Introduction [cevadsp YouTube channel, Aug 4, 2011]
CEVA, Inc. Announces Second Quarter 2012 Financial Results [CEVA press release, July 31, 2012]
… Total revenue for the second quarter of 2012 was $13.6 million, a decrease of 6% compared to $14.4 million for the second quarter of 2011. Licensing revenue for the second quarter of 2012 was $5.4 million, an increase of 3% compared to $5.2 million reported for the second quarter of 2011. Royalty revenue for the second quarter of 2012 was $7.6 million, compared to $8.3 million reported for the second quarter of 2011. Revenue from services for the second quarter of 2012 was $0.6 million, compared to $0.9 million reported for the second quarter of 2011.
Gideon Wertheizer, Chief Executive Officer, stated: “The second quarter was the strongest licensing quarter in more than three and a half years, driven by a strategic licensing agreement with a tier 1 handset OEM for a range of LTE handsets and the first agreement for our newest DSP, the CEVA-XC4000 for LTE- Advanced. These latest agreements bring the total LTE design wins for CEVA DSPs to date to more than 20, and form the foundation for future royalty growth. Finally, while the competitive 2G market is experiencing pricing pressure, our volume growth in the lucrative 3G market during the quarter significantly outpaced that of the overall 3G space, as low and mid-range 3G smartphones gain traction.” …
About CEVA, Inc.
CEVA is the world’s leading licensor of silicon intellectual property (SIP) DSP cores and platform solutions for the mobile, portable and consumer electronics markets. CEVA’s IP portfolio includes comprehensive technologies for cellular baseband (2G / 3G / 4G), multimedia (HD video, Image Signal Processing (ISP) and HD audio), voice over packet (VoP), Bluetooth, Serial Attached SCSI (SAS) and Serial ATA (SATA). In 2011, CEVA’s IP was shipped in over 1 billion devices and powers handsets from every top handset OEM, including HTC, Huawei, LG, Motorola, Nokia, Samsung, Sony and ZTE. Today, more than 40% of handsets shipped worldwide are powered by a CEVA DSP core. For more information, visit www.ceva-dsp.com. Follow CEVA on twitter at www.twitter.com/cevadsp.
LTE-A Ref.Architecture [part of the Ceva-XC4000 product page, Feb 20, 2012]
CEVA-XC4000 multi-mode LTE-Advanced reference architecture
Based on multiple CEVA-XC4000 processors, CEVA offers a complete multimode LTE-Advanced reference architecture targeting LTE-A Rel-10 Cat-7. The reference architecture was developed together with mimoOn, a member of the CEVA-XCnet partner program and addresses the entire PHY layer requirements.
Reference architecture highlights:
    • A complete LTE PHY system architecture addressing the entire PHY layer requirements of multiple standards in software including: TD-LTE-A, HSPA+ Rel-9, TD-SCDMA, WiMAX and more
    • Built around CEVA-XC4000 processors with minimal complementary hardware accelerators
    • Offers industry’s most competitive SDR platform in terms of both cost and power consumption
    • Supports maximal throughput of LTE-A Rel-10 CAT-7 UE FDD (DL: 300Mbps, UL: 100Mbps) with up to 8×4 MIMO and carrier aggregation of up to two carrier components to a total of 40MHz channel
    • High operating margins enabling customer differentiation by software
    [See also the related press release, as well as the  CEVA Continues to Dominate DSP IP Market with 90% Market Share [May 14, 2012] press release]

    CEVA is also a best case for the trend determining the future of the semiconductor IP ecosystem, especially with the above “small print” example of a reusable LTE Advanced subsystem. More about the formation of such a trend you can find in the <<sticking with the “Goliath”>> section below.


    – When sticking with the “Goliath”: ARM Holdings Plc

    Then there are a number of vendors with an ecosystem of surrounding IP partners such as ARM Holdings Plc on the higher end (which we’ve already presented in the earlier, “Market Overview” section) and CAST Inc. on the lower one.

    Let’s examine the future of the semiconductor IP ecosystem through the eyes of these two companies. What they can offer strategically to their customers? Why customers are selecting the smaller and much less influential offerings from CAST against the “industry behemoth” ARM? What does it mean for a customer sticking with one against the other?

    Making IP work and getting the right SoC! [Global Semiconductor Alliance (GSA) Intellectual Property blog, July 18, 2012]

    Jack Browne, Vice President, Marketing, Sonics, Inc.

    Designers defining the next generation SoCs are adding more cores in pursuit of the ever increasing user experience. Whether for pacesetting smart phones, WiFi routers, or personal medical devices, making all this IP work as intended in the SoC requires system IP.  System IP includes the on-chip network, performance analysis tools, debug tools, power management and memory subsystems necessary for best in class SoCs. Whether used by the architect in the initial definition of the SoC or the layout engineer finalizing timing for place and route closure, system IP is critical to the design insuring that the capabilities of the SoC will meet the required end user experiences.

    For complex SoCs over 100 IP blocks may be included in a design.  Choices can be tough, with over a hundred IP vendors offering solutions, each with multiple products.  The System IP eases the design burden by supporting both IP blocks and subsystems with the necessary broad range of interface protocols, widths, frequency domains and power domains.

    System IP eases the challenges of maintaining a common software platform over multiple generations of SoC’s, built with varying IP cores and subsystems. Market research firm Semico, forecasts subsystem functions for computing, memory, video, communications, multimedia, security and system resource management. The increased abstraction from subsystems gives productivity benefit (leveraging use of commercial IP blocks) as well as differentiation through the integration of in-house IP blocks with standard industry IP blocks into reusable subsystems. A computing subsystem example would be ARM’s big.LITTLE CPU clusters where ARM does most of the integration ahead of time with the designer doing final configuration of features and/or number of coresAnother example would be faster communication subsystems like LTE advanced subsystems [we have already shown CEVA’s LTE-A Ref.Architecture above as the best example for that]. By customizing a 4G LTE advanced subsystem solution with internal technology, SoC design teams can differentiate from standard IP blocks using their internal expertise while leveraging the shared R&D benefits of merchant 4G IP subsystems.

    With the increasing cost of today’s SoCs, many are designed for multiple markets where not all of the functionality of the SoC is in use.  Many also have multiple usage scenarios within a given market, e.g. music playback on our smartphone. With the importance of battery life, managing the power of a SoC, including the ability to power off unused blocks, gives the best battery life.  Today’s 28nm SoCs are using dozens of power domains and even more clock domains to meet the performance and battery life requirements. By moving to system IP supporting hardware centric control of power transitions, end users will make more use of Dark Silicon (normally powered off) for better battery life as compared to interrupt centric software power management control.

    When starting a new SoC design, your choice of system IP is a key early decision as you have now selected the on-chip network, performance analysis tools, debug tools, power management and memory subsystems available for your design.  Making the right choice can provide a 2x benefit over other choices with regard to performance, power and cost, so make an informed choice.

    Foundry and IP Business Model: Alive and Well [Global Semiconductor Alliance (GSA) Intellectual Property blog, May 16, 2012]

    Dr. John Heinlein, Vice President, Marketing, ARM Physical IP Division

    … The IP ecosystem … is diverse and vibrant, with today’s IP providers offering many IP types, spanning a wide range of power, performance and area tradeoffs.  As an example, at 45 and 40nm various industry databases list between 450-620 licensable IP blocks available.  Furthermore, the latest IP developments at 45nm and 28nm include extensive power management capabilities, cost tradeoffs and implementation options that give designers choices for their chip.  Only through this ecosystem diversity can we have the rich and competitive landscape to address the many market segments the industry serves.

    Major technology investments are occurring across the foundry space, with new leading-edge R&D investments in fundamental process technology being made.  These investments span major companies like IBM, TSMC, Samsung, GLOBALFOUNDRIES, research consortia like IMEC and even new entrants like SuVolta, all of which are driving for aggressive technologies.  Today, 32 and 28nm products are in production and many more ramping to production.  Following that, there is a range of solutions already announced at 20nm that deliver the next node of planar bulk CMOS scaling.  Furthermore, the industry has clearly shown its commitment to investing in the next wave of 20nm and 14nm solutions beyond bulk ranging from FinFET to fully depleted SOI. …

    Clean Sweep at 28nm for ARM Artisan Physical IP [GSA Intellectual Property blog, Oct 11, 2011]

    John A. Ford, Director of Product Marketing, Physical IP Division, ARM

    On October 6th, UMC announced the selection of the ARM® Artisan® Physical IP Platform for the UMC foundry sponsored IP program. This new platform for UMC’s 28nm high-K metal gate (HKMG) process is a natural continuation of the long standing relationship between ARM physical IP division and UMC. ARM Artisan IP has been successfully used in millions of SoCs produced at UMC for more than 10 years on 180nm, 130nm, 90nm, 65nm and 55nm process technologies. The addition of UMC to ARM’s family of 28nm Physical IP platforms has a larger meaning than just a high quality set of IP on a technology-leading process. ARM Artisan IP is now the only physical IP platform available at all four of the 28nm commercial foundries in the world: TSMC, UMC, GLOBALFOUNDRIES, and Samsung.

    This makes good sense considering ARM’s expertise in physical IP optimization and years of establishing early foundry engagement on advance node IP development. ARM started work on physical IP for HKMG processes way back in 2008 with test chips and process qualification chips for IBM’s 32nmLP process. 32nmLP process was the first commercially available HKMG process and is now in high volume production at Samsung for smart phone, tablet and other applications. With millions of production SoCs at 32nm, 28nm is actually the 2nd generation of HKMG IP from ARM and includes all the critical design technique learning from 32nm development and production. ARM is deploying a full platform of standard cells, logic products, memory compilers and interface products at 28nm. Customers can benefit from being able to use consistent IP at all four foundries for the development of their SoC. With ARM’s exhaustive silicon validation process, customers have the assurance, peace of mind and confidence that only comes for using ARM IP.

    We’re not stopping there. ARM is now actively developing 20nm physical IP at both IBM and TSMC, with 5 test chips taped out starting in 2009 and several more planned for 2012 and 2013. By engaging early with foundries and developing IP in parallel with the process development, ARM ensures that designers can achieve the full entitlement of the technology, with a high degree of manufacturability. Foundries engage with ARM as a partner for early physical IP because of the long experience we have in developing physical IP on advanced process including CMOS SiON, CMOS HKMG and SOI. …

    ARM big LITTLE processing: Saving Power through heterogeneous multiprocessing and task content migration [chipestimate YouTube channel, June 18, 2012]

    Brian Jeff Product Manager at ARM. IP Talks speaker with ChipEstimate.com at DAC 2012 in San Francisco. ARM big LITTLE processing: Saving Power through heterogeneous multiprocessing and task content migration.
    From: Enabling Mobile Innovation with the Cortex™-A7 Processor [ARM whitepaper for TechCon 2011 by Brian Jeff, Oct 15 2011]
    Market requirements for high-end mobile
    High-end smartphones require high performance applications processors and graphics processors, but instantaneous performance requirements are highly elastic. During web browsing, for example, peak performance is required when pages are first rendered, but much lower levels of processor performance are required when reading or scrolling down a page. Similarly, applications have varying levels of performance requirements, typically requiring very high performance during launch, and low to moderate levels of required performance during at least some portion of runtime. For voice calls, the level of performance required by the applications processor is quite low, even on a high-end smartphone.
    Given the wide range of required performance, it would be ideal if the phone could use a very power efficient CPU some of the time, and migrate the context to a high performance CPU at other times. ARM has been researching this idea for several years, and has specifically designed the Cortex-A7 CPU not only to ideally fit all but the high-end performance requirements of a high-end smartphone, but also to be able to connect tightly with the larger and higher performance Cortex-A15 CPU in a coherent system. When connected together through AMBA Coherency Extension (ACE) interface a Cortex-A15 CPU cluster can be connected with a cluster of Cortex-A7 CPUs in a processor complex with a single memory map, hardware managed cache coherency, and the ability to run workloads on the large CPU cluster or small CPU cluster depending on instantaneous performance requirements. This concept created by ARM is called big.LITTLE processing.

    image

    big.LITTLE Processing
    Big.LITTLE refers to the coherent combination of High Performance and Power Efficient ARM CPUs A platform that contains both Cortex-A15 (big) and Cortex-A7 (LITTLE) can execute across a wider performance range with better energy efficiency than a single processor. Hardware coherency between Cortex-A15 and Cortex-A7 enables distinct big.LITTLE use models, either migrating context between the big and little clusters, or OS aware thread allocation to the appropriately sized CPU or CPUs. The CCI-400 cache coherent interconnect enables an extremely fast context migration between the big and little CPU clusters. Finally, software views the big and LITTLE CPU clusters identically, and transitions are managed automatically by OS power management or directly by the OS. The Net result of big.LITTLE power management is a platform with the peak performance of the Cortex-A15, and average power consumption closer to the Cortex-A7. This enables significantly higher performance at lower power than today’s high-end smartphones. The concept of big.LITTLE processing is only briefly introduced here; a more complete description of the ardware, software, and system implementation of big.LITTLE processing is covered in other TechCon resentations.
    From: Big.LITTLE Processing with ARM Cortex™-A15 & Cortex-A7 [ARM whitepaper by Peter Greenhalgh, Sept 15 2011]
    In general, there is a different ethos taken in the Cortex-A15 micro-architecture than with the Cortex-A7 micro-architecture.  When appropriate, Cortex-A15 trades off energy efficiency for performance, while Cortex-A7 will trade off performance for energy efficiency.  A good example of these micro-architectural trade-offs is in the level-2 cache design.  While a more area optimized approach would have been to share a single level-2 cache between Cortex-A15 and Cortex-A7 this part of the design can benefit from optimizations in favor of energy efficiency or performance.  As such Cortex-A15 and Cortex-A7 have integrated level-2 caches.
    Table 1 illustrates the difference in performance and energy between Cortex-A15 and Cortex-A7 across a variety of benchmarks and micro-benchmarks.  The first column describes the uplift in performance from Cortex-A7 to Cortex-A15, while the second column considers both the performance and power difference to show the improvement in energy efficiency from Cortex-A15 to Cortex-A7.  All measurements are on complete, frequency optimized layouts of Cortex-A15 and Cortex-A7 using the same cell and RAM libraries. All code that is executed on Cortex-A7 is compiled for Cortex-A15.
      Cortex-A15 vs Cortex-A7 Performance Cortex-A7 vs Cortex-A15 Energy Efficiency
    Dhrystone 1.9x 3.5x
    FDCT 2.3x 3.8x
    IMDCT 3.0x 3.0x
    MemCopy L1 1.9x 2.3x
    MemCopy L2 1.9x 3.4x

    Table 1 Cortex-A15 & Cortex-A7 Performance & Energy Comparison

    It should be observed from Table 1 that although Cortex-A7 is labeled the “LITTLE” processor its performance potential is considerable.  In fact, due to micro-architecture advances Cortex-A7 provides higher performance than current Cortex-A8 based implementations for a fraction of the power.  As such a significant amount of processing can remain on Cortex-A7 without resorting to Cortex-A15.

    big.LITTLE Task Migration Use Model
    In the big.LITTLE task migration use model the OS and applications only ever execute on Cortex-A15 or Cortex-A7 and never both processors at the same time.  This use-model is a natural extension to the Dynamic Voltage and Frequency Scaling (DVFS), operating points provided by current mobile platforms with a single application processor to allow the OS to match the performance of the platform to the performance required by the application.
    However, in a Cortex-A15-Cortex-A7 platform these operating points are applied both to Cortex-A15 and Cortex-A7.  When Cortex-A7 is executing the OS can tune the operating points as it would for an existing platform with a single applications processor.  Once Cortex-A7 is at its highest operating point if more performance is required a task migration can be invoked that picks up the OS and applications and moves them to Cortex-A15.
    This allows low and medium intensity applications to be executed on Cortex-A7 with better energy efficiency than Cortex-A15 can achieve while the high intensity applications that characterize today’s smartphones can execute on Cortex-A15.

    image

    An important consideration of a big.LITTLE system is the time it takes to migrate a task between the Cortex-A15 cluster and the Cortex-A7 cluster.  If it takes too long then it may become noticeable to the operating system and the system power may outweigh the benefit of task migration for some time.  Therefore, the Cortex-A15-Cortex-A7 system is designed to migrate in less than 20,000-cycles, or 20-microSeconds with processors operating at 1GHz.
    big.LITTLE MP Use Model
    Since a big.LITTLE system containing Cortex-A15 and Cortex-A7 is fully coherent through CCI-400 another logical use-model is to allow both Cortex-A15 and Cortex-A7 to be powered on and simultaneously executing code.  This is termed big.LITTLE MP, which is essentially Heterogeneous MultiProcessing.  Note that in this use model Cortex-A15 only needs to be powered on and simultaneously executing next to Cortex-A7 if there are threads that need that level of processing performance.  If not, only Cortex-A7 needs to be powered on.
    big.LITTLE MP is compelling because it enables threads to be executed on the processing resource that is most appropriate.  Compute intensive threads that require significant amounts of processing performance, as their output is user visible, can be allocated to Cortex-A15.  Threads that are I/O heavy or that do not produce a result that is time critical to the user can be executed on Cortex-A7.
    A simple example of a non-time critical thread is one associated with e-mail updates.  While web browsing the user will want email updates to continue, but it does not matter if they are done at CortexA15 performance levels or Cortex-A7 performance levels.  Since Cortex-A7 is a more energy efficient processor it makes more sense to take a LITTLE longer, but consume less battery life.
    Finally, as a fully coherent system can create a significant volume of coherent transactions, Cortex-A15, Cortex-A7 and CCI-400 have been designed to cope with worst case snooping scenarios.  This includes the case where a Mali™-T604 GPU is connected to one of the I/O coherent CCI-400 ports and every transaction is snooping Cortex-A15 and Cortex-A7 at the same time as Cortex-A15 and Cortex-A7 are snooping each other.
    From Combining large and small compute engines – ARM Cortex-A7 [by Brian Jeff on ARM SoC Design blog, Oct 19, 2011]
    The fourth and final thing is to ensure these engines work with a regular transmission.
    We needed to ensure there was a simple software approach to controlling the big.LITTLE switch consistent with power management mechanisms already in place. Current smartphones and tablet devices make use of Dynamic Voltage and Frequency Scaling (DVFS) and multiple idle modes for individual CPU cores and IP blocks in the application processor SoC. Our implementation of big.LITTLE modifies the back end of the driver which controls the processor’s DVFS operating point (for example cpu_freq in Linux/Android). Instead of three or four DVFS operating points, the driver now is aware of two CPU clusters each potentially with three or four independent voltage and frequency operating points, extending the range of performance tuning that existing smartphone power management solutions use. A big.LITTLE CPU cluster can be operated in a pure switching mode, where only one CPU cluster is active at a time under control of the DVFS driver, or a big.LITTLE heterogeneous multiprocessing mode where the OS is explicitly controlling the allocation of threads to the big or little CPU clusters and is thus aware of the presence of the different types of cores.

    ARM Cortex-A7 launch — Intro Simon Segars, President ARM Inc [US] [ARMflix YouTube channel, Oct 19, 2011]

    image

    ARM Cortex-A7 launch — Presentation, Mike Inglis, EVP & GM ARM Processor Division [ARMflix YouTube channel, Oct 19, 2011]

    The efficiency of the ARM architecture is the reason why ARM processors use less power and occupy a smaller footprint. The Cortex-A7 processor occupies less than 0.5mm2, using 28nm process technology, and provides compelling performance in both single and multicore configurations. Used as a stand-alone processor, the Cortex-A7 will deliver sub-$100 entry level smartphones in the 2013-2014 timeframe with an equivalent level of processing performance to today’s $500 high-end smartphones.

    image

    imageCortex-A7: Redefining Energy-Efficiency (DMIPS/mW)

    • Most energy-efficient applications processor
      ƒ- 5x the energy efficiency of mainstream phones
    • ƒPerformance to handle common workloads
      ƒ- >2x the performance of mainstream phone
    • Feature set and software compliant with Cortex-A15
      ƒ- Full backward compatibility
      ƒ- Scalable and extensible
    • Up to 20% more performance while consuming 60% less power

    From: Enabling Mobile Innovation with the Cortex™-A7 Processor [ARM whitepaper for TechCon 2011 by Brian Jeff, Oct 15 2011]
    The Cortex-A7 processor was designed primarily for power-efficiency and a small footprint. The design team based the pipeline on the extremely power efficient Cortex-A5 CPU, then added microarchitecture enhancements to increase performance and architectural enhancements to deliver full software compatibility with the Cortex-A15 CPU. These architectural enhancements include support for virtualization and 40-bit physical address space, and AMBA® 4 bus interfaces. Virtualization and large address space are unusual features for so small a CPU, but are critical to present a software view of the Cortex-A7 that is identical to the Cortex-A15 high-end CPU.
    Like the Cortex-A5, Cortex-A9, and Cortex-A8 processors that came before it, the Cortex-A7 processor is a full ARM v7A CPU, with support for the Thumb®-2 instruction set, optional 32-bit/64-bit floating point acceleration and optional NEON™ 128-bit SIMD architectural blocks. The Cortex-A7 also includes support for TrustZone® to enable secure operating modes which are increasingly important in modern mobile OEM designs. To bring higher scalability, the Cortex-A7 is also configurable as a multicore processor, supporting 1-4 cores in a coherent cluster.
    The Cortex-A7 is a simple in-order pipeline with significant but not complete dual-issue capability; however the careful choice of design features has enabled the performance of a single Cortex-A7 core to outperform the full dual-issue Cortex-A8 CPU on some important benchmark tests like web browsing, while consuming up to 60% less power.

    image

    Cortex-A7 Microarchitecture
    The roadmap below shows the legacy of Cortex-A class CPU designs, beginning with the Cortex-A8. In that design, ARM introduces the NEON SIMD architectural extension, and implemented a 2-way superscalar CPU that brought significant performance enhancements over the single-issue ARM11™. The Cortex-A9 extended the Cortex-A8 by bringing in MPCore capability for 1 to 4 CPU’s with cache coherency managed efficiently by a snoop control unit. The Cortex-A9 also introduced performance enhancements inside the core that brought a 20-30% performance increase over Cortex-A8 for a single core.
    image
    Cortex-A7 makes use of a simple 8-stage in-order pipeline, extended to include dual-issue capability on a reduced range of data-processing and branch instructions. Increased dual-issuing coupled with other microarchitectural improvements allow the Cortex-A7 to reach very good levels of performance with very low power consumption.
    image
    Other performance enhancing features include an integrated L2 cache, which reduces latency to L2 memory and external memory. The integrated L2 cache simplifies OS support as it uses system mapped registers and can be managed using CP15 operations rather than the memory mapped registers needed for an external L2 cache. Integrating the L2 cache controller also reduces the amount of area consumed by an external controller and enables a tighter integration of the controller with internal bus structures.
    The L2 cache controller itself was designed with low power in mind. The mechanism for looking up tags in the cache RAM includes consecutive tag followed by data lookup; similarly, the associativity is fixed at 8-way to balance performance against lookup energy. External requests are triggered on an L2 miss, rather than on speculative requests, to reduce energy.
    There are branch prediction improvements as well: the branch target instruction cache (BTIC) caches fetches after a direct branch and hides the branch shadow on tight loops.
    There are several improvements in memory system performance. The Load-Store path has been increased to 64-bits from the 32-bit path in the Cortex-A5. The external bus structure has been upgraded to 128-bit AMBA4 to improve bandwidth and introduce support for coherency extension beyond the 1-4 SMP cluster using AMBA 4 ACE.
    Energy Efficiency Features of the Microarchitecture
    There are several features of the L1 Memory system which reduce the power consumption of the CPU or the system. The merging Store-buffer after the write stage reduces data cache lookups. The 2-way set associative instruction cache trades off the slightly improved hit rate of a 4-way set associative cache for the reduced power on each lookup.
    Memory System Tuned to Minimize memory latency
    There are several performance optimizing features in the memory system. The address generation unit is shifted one stage back in the pipeline to enable a single cycle load-use penalty. The design team increased TLB size to 256 entries, up from 128 entries for the Cortex-A5 and Cortex-A9; this reduces page walks saving power and significantly improves performance for large workloads like web browsing with large data sets that span a large number of pages. Also, page tables entries can be cached in L1, improving the speed of page table walks on TLB misses. The bus interface unit has support for multiple outstanding read and write transactions. Finally, the physically indexed caches enable efficient OS Context switching.

    ARM Cortex-A7 launch — big.LITTLE demonstration, Nandan Nayampally, Director, Product Marketing [ARMflix YouTube channel, Oct 19, 2011]

    ARM Expands Processor Optimization Pack Solutions for TSMC 40nm and 28nm Process Variants [ARM press release, April 16, 2012]
    A Processor Optimization Pack solution is composed of three elements necessary to achieve an optimized ARM core implementation. First, it contains ARM Artisan® Physical IP logic libraries and memory instances that are specifically tuned for a given ARM core and process technology.
    This Physical IP is developed through a tightly coupled collaboration with ARM processor engineers in an iterative process to identify the optimal results. Second, it includes a comprehensive benchmarking report to document the exact conditions and results ARM achieved for the core implementation. Finally, it includes a POP Implementation Guide that details the methodology used to achieve the result, to enable the end customer to achieve the same implementation quickly and at low risk.
    “A single POP product can be applied to energy-efficient mobile, networking or even enterprise applications, providing a wide range of flexibility for ARM SoC partners to optimize performance and energy-efficiency while reducing risk in their designs,” said Simon Segars, executive vice president and general manager, Processor and Physical IP Division, ARM. “Only ARM can offer a complete roadmap of Processor Optimization Pack implementation solutions so deeply integrated and tightly aligned with ARM processor development activities now and into the future.”
    The summary below describes the existing and newly announced POP products for TSMC processes. ARM also incorporates the POP optimizations in hard macros of Cortex cores.
    POP availability by process technology
    TSMC 40LP
    TSMC 40 LP high speed options
    TSMC 40 G
    TSMC 28 HPM
    TSMC 28 HP
    ARM Cortex™-A5 Existing
    Cortex-A5
    New
         
    Cortex-A7
    New
    Cortex-A7
    New
     
    Cortex-A7
    New
     
    Cortex-A9 Existing
    Cortex-A9
    New
    Cortex-A9 Existing
    Cortex-A9
    New
    Cortex-A9
    New
         
    Cortex-A15
    New
    Cortex-A15
    Upcoming

    ARM Announces Cortex-A15 Quad-Core Hard Macro [ARM press release, April 17, 2012]
    Power-optimized implementation of quad-core hard macro on leading 28nm process
    ARM today announced the availability of a high performance, power-optimized quad-core hard macro implementation of its flagship ARM® Cortex™-A15 MPCore™ processor.  
    The ARM Cortex-A15 MP4 hard macro is designed to run at 2GHz and delivers performance in excess of 20,000DMIPS, while maintaining the power efficiency of the Cortex-A9 hard macro. The Cortex-A15 hard macro development is the result of the unique synergy arising from the combination of ARM Cortex processor IP, Artisan® physical IP, CoreLink™ systems IP and ARM integration capabilities, and utilizes the TSMC 28HPM process.
    The low leakage implementation, featuring integrated NEON™ SIMD technology and floating point (VFP), delivers an extremely competitive balance of performance and power and is ideal for wide array of high-performance computing applications for such as notebooks through to power-efficient, extreme performance-orientated network and enterprise devices. 
    The hard macro was developed using ARM Artisan 12-track libraries and the recently announced Processor Optimization Pack™ (POP) solution for the Cortex-A15 on TSMC 28nm HPM process. This follows the recent announcement of a broad suite of POPs for all Cortex-A series processors (see ARM Expands Processor Optimization Pack Solutions for TSMC 40nm and 28nm Process Variants, 16th April 2012)
    Full configuration and implementation details will be presented at the Cool Chips conference (18-20 April) in Yokohama, Japan. Further information is contained in an accompanying blog.
    “For SoC designers looking to make a trade-off between the flexibility offered by the traditional RTL-based SoC development strategy and a rapid time to market, with ensured, benchmarked power, performance and area, an ARM hard macro implementation is an ideal, cost-effective solution,” said Jim Nicholas, vice president of Marketing, processor division, ARM. “This new Cortex-A15 hard macro is an important addition to our portfolio and will enable a wider array of partners to leverage the outstanding capabilities of the Cortex-A15 processor.”
    See also:
    Squaring the circle – Optimizing power efficiency in a Cortex-A15 processor [Haydn Povey on SoC Design blog of ARM, April 17, 2012]
    Simplifying SoC’s with Hard Macros – New solutions for old problems [Haydn Povey on SoC Design blog of ARM, Oct 20, 2011]: “For me, the most important aspect of this talk was the public announcement of the availability of a new Cortex™-A5 Hard Macro for the TSMC 40nm Low Power node (40LP) which can achieve a whopping speed of over 1GHz in a tiny footprint of just 1mm2. … there will always be partners who need the full flexibility of RTL and POPs, but there is also a group for whom having a pre-integrated and hardened ready to run solution out of the box is the best route to market.”
    –  Hard Macro Processors [ARM product page, April 17, 2012]
    The ARM Hard Macro portfolio offers performance and power optimized hard macrocell implementations of the Cortex™-A series processors. For SoC designers looking to make a trade-off between the multifaceted flexibility offered by the traditional RTL based SoC development strategy and the significant costs and efforts it involves, the ARM Hard Macro portfolio is an exciting alternative that enables higher profitability through benchmarked PPA (Performance, Power, and Area), design risk reduction and faster time to market.

    ARM Hard Macros are available in a number of different implementation options with more being added.
    Currently the following options are available.
    Processor TSMC 40LP TSMC 40G TSMC 28HPM
    Cortex-A5 Single-core X    
    Cortex-A9 Dual-core   X  
    Cortex-A15 Quad-core     X
    Processor Optimization Pack™ (POP) solutions targeting ARM Cortex™ processors [ARMflix YouTube channel, April 16, 2012]
    ARM Artisan Physical IP Delivers Optimized Performance and Energy-Efficiency for ARM® Cortex™-A5, Cortex -A7, Cortex-A9 and Cortex-A15 cores.

    ARM Holdings Management Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, July 25, 2012]

    If I look at physical IP, the story here is our physical IP is being used right across the different sectors that ARM’s processors are used in. We’re continuing with the processor optimization package activity. It was a record quarter for POPs. The best quarter we’ve had. So total of over 32 POPs sold now, still about a 50% attach rate with Cortex-A licensees, so that’s good in terms of generating royalty for the future.

    image

    [Note that here are only 13 companies shown out of those 32 POP licensees.]

    And also good in terms of generating royalty for the future is that this quarter, we had 4 new fabless semiconductor companies adopting ARM physical IP for their 28nm designs and beyond. So that is good for royalty growth going forward.

    Note: On the very first “Q2 2012 Highlights” slide one could see the following overall split:

    image

    The overall 77% share of processor division comprised of 31% licensing (the lighter blue)and 47% of royalties. So that is a pretty mature part of the business overall, although the Mail GPU part of it is still developing:

    Let’s — I should just highlight, we’ve got on the slide, of course, millions now of Mali devices as well, are going into those Cortex-A-based chips. And as far as Mali is concerned, then we are very much on track for the 100 million-plus units that we expect to deliver this year.

    as around 180 million Cortex-A units were shipped in the first half alone (see the graph in the next exerpt from the earnings call).

    The “Revenue Split Analysis” slide from the Appendix, however, is showing that due to the steadily growing application processor business (simply indicated Processor Division, PD) the share of the Physical IP business (simply indicated Physical IP Division, PIPD) was not growing for the last four years:

    image

    With extremely high interest in upcoming technologies of 28nm and beyond more and more Cortex licensees will (should) exploit the POP opportunity. Here is the low-end SoC market leader, MediaTek (Taiwan) example of its upcoming flagship products which should definitely use PoP as well for such a tight delivery schedule (considering the just 10 months availability of Cortex-A7 for licensing, i.e. ~15 months relative to Jan’13 SoC delivery vs. 2-3 years which were required previously):

    MediaTek a product roadmap leaked: Quad-core code-named MT6588 [MTK Smartphones Network (MTK手机网), July 27, 2012]
    Update: later was renamed and came to market as MediaTek MT6589 quad-core Cortex-A7 SoC with HSPA+ and TD-SCDMA is available for Android smartphones and tablets of Q1 delivery [this same blog, Dec 12, 2012]

    From a recently obtained electronic forum information abroad we see that the MT6585 code communicated earlier for the quad-core MediaTek smartphone chipset is wrong. The true model code is MT6588. It is built on the 28nm process in order achieve higher performance level than the dual-core MT6577 technology.
    MT6588 has a 4-core CPU [Cortex-A7 (!), see on the second slide below] clocked at 1GHz [1.XGHz rather, see the included slides below, as well the latest rumor about that being 1.7GHz or 1.5GHz], supports dual-channel at maximum 1066Mbps, has an integrated multimode modem for WCDMA [+ it is delivering HSPA+ WCDMA performance (!) vs just HSPA with MT6577/75, see the first slide below] and TD (!), that is it can support both Unicom [latest upgrade to HSPA+ service, see here] and China Mobile 3G network, supports an up to 13 MP camera and 1080P video playback. It finally has a GPU upgrade with SGX544, doubles the resolution to 1280×800 HD level, and has 32KB L1 cache and 1MB L2 secondary cache.
    Along the MT6588 there is a 28nm dual-core version, MT6583 on the MediaTek 2012 product roadmap. From the chipset parameters it is evident that MT6583 is a scaled down version of MT6588. It has 2 cores less, the camera support is 8MP, the video decoder is of 720P level, and the resolution is down to 854×480.
    It is understood that MT6588 and MT6583 will be in production in the first quarter of 2013, early next year the fastest.

    The MediaTek product roadmap

    MTK MT6588 chip Introduction

    MediaTek to launch quad-core smartphone solutions in 1Q13, says paper [DIGITIMES, Aug 6, 2012]

    MediaTek is expected to launch its first quad-core smartphone solution, the MT6588, in the first quarter of 2013, according to a Chinese-language Liberty Times report. The MT6588 features a quad-core 1.5GHz or 1.7GHz Cortex-A7 CPU, supporting WCDMA and TD-SCDMA technologies.

    The MT6588, which features a 13-megapixel camera, also supports 1080p video playback and a display resolution of 1280 by 800 pixels. The chip will be built using a 28nm process, the paper said.

    Additionally, MediaTek will also roll out a 28nm dual-core solution, the MT6583, during the same quarter. While the dual-core CPU of the MT6853 will also run at 1.5GHz or 1.7GHz, the chip will support a resolution of 854 by 480 pixels targeting a segment different from that of the MT6588, the paper indicated.

    Back to: ARM Holdings Management Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, July 25, 2012]

    imageOne thing we are seeing is the value coming through in mobile, generally, the increasing number of smartphones, and within the smartphones themselves, an increasing number of Cortex-A products. And you can see a little histogram halfway down the slide, the top bar there is the ARM11. So ARM11 is still accounting for 40%, roughly, of the apps processors. And the Cortex-A is accounting for, roughly, 60% of the apps processors. But within that Cortex-A, you can see dual-core Cortex-A increasing significantly if you compare the situation with a year ago. And that’s good news from a value point of view for ARM as royalty, because typically these chips are more expensive. So single-core moving to dual-core and quad-core is a good trend for us. And note also, the underlying growth in sheer volume of our apps processors in smartphones. Don’t forget, with all this gloom and doom around, smartphones continues to be an area of significant growth for the business, and we’re looking forward to 30% thereabout growth in smartphones year-on-year so — for the year as a whole.
    ARM in MCU and Internet of Things
    imageGrowing standardisation around ARM in Microcontrollers
    – More than 100 companies have now licensed Cortex-M class processors mainly for microcontrollers, smart sensors and smartcards
    – Cortex-M0+ is ARM’s most energy efficient processor for microcontrollers
    Collectively, if you look at the line cards from the ARM partners, there are over 1,400 different ARM microcontroller products that you can go out and buy from ARM partners today. And that’s going to be a much bigger number by the time we’re all of that licensing that we’ve been doing gets into Silicon production.
    Earlier this year, we launched the Cortex-M0+ product … And again, at the Freescale technology forum, we saw an excellent demonstration of that power efficiency, where they literally had an ARM-powered charger, crank it up with a crank handle, charged a few capacitors up in the range of different microcontrollers and of course, the Cortex-M0+ went on and on and on. So that’s a great product.
    As far as the range of opportunities is concerned, it’s huge, and we’re starting to get design ins and as we start to get design ins, so more and more semiconductor companies are jumping onto the ARM-based microcontroller party. And they’re making these decisions in order to position themselves for the Internet of Things way.
    imageInternet of Things brings new opportunities
    – Combining radio technology with ARM-based microcontrollers and sensors
    – Huge range of applications, billions of opportunities
    – New products announced from Freescale, NXP and Toshiba in Q2

    In terms of volume shipments, at the moment then we saw another great quarter, where if we look year-on-year on microcontroller shipments up about 20% compared with industry shipments, up about 8%.

    Freescale: History & Future of “Internet of Things” – Design West (ESC) 2012 [ARMflix YouTube channel, March 28, 2012]
    Jim Trudeau, Solutions Technical Marketing from Freescale on the Cortex-M0+, the Internet of Things and Freescale’s Kinetis L Series
    See more: The Internet of Things, the ultimate mashup [Jim Trudeau on Software Meets Silicon blog of Freescale, April 17, 2012], published on ARM blog as “The Internet of Things, a Triad of Partners, and the Singularity of Change
    Implementing connectivity is where a company like Motomic Software comes into play. They bring Human Machine Interface (HMI) capability to a new arena. With connectedness comes the need for HMI to get smarter, to display what we really need to know when we need to know it in better ways. Take the lowly thermostat – as simple as its task, a traditional digital thermostat UI is typically confusing to use. A modern, simple UI in a “learning” thermostat can be quite simple. The contrast in complexity is startling as shown in Figure 1.
    Attached Image
    Figure 1: Contrasting Digital Thermostat UI
    Motomic Embedded Software Tools for IOT – Design West (ESC) 2012 [ARMflix YouTube channel, March 28, 2012]
    Motomic tells us about embedded software tools for applications focusing on Internet of Things, plus a demo of an embedded browser and media grid. http://www.motomicsoftware.com/
    See more: A Face for the Internet of Things [Mike Gee, CEO of Motomic Software, Inc. as a guest blogger on Embedded blog of ARM, June 11, 2012 ]
    … Motomic has created two browsers. Both browse and render HTML/CSS. Motomic’s µButterfly “microbrowser” runs in as little as ~320 KB Flash and 109 KB RAM. The Butterfly “minibrowser” is based on Qt, it supports features such as TrueType fonts, anti-aliasing and alpha blending. It requires 6+ MB of Flash. The RAM requirement depends on screen size and content requirements, starting around ~1 MB.
    Attached Image
    Both leverage the very low power requirements and very small footprints of ARM’s Cortex-M0+ and Cortex-M4 microprocessors that are too small to run a web browser such as WebKit, Chrome, Mozilla, etc. These small processors can now accurately render HTML/CSS content previously reserved for higher-end processors.
    Qt on Future’s WVGA display [MotomicSoftware YouTube channel, July 9, 2012]
    Nokia Qt for Freescale’s MQX real-time operating system on Kinetis K70 @ Future Electronics’ WVGA (800×480) PIM (Passive Intermodulation http://en.wikipedia.org/wiki/Intermodulation#Passive_Intermodulation) displays …. By adding Qt to MQX, you can: develop Qt-based applications for MQX, begin with the latest prebuilt, prevalidated, preintegrated Qt version, ready for your first deployment on one or more hardware platforms—you don’t need to build Qt, add splash screens with the world’s fastest animations, deploy Qt applications to your embedded devices automatically, leverage hardware optimizations and future-proof your hardware platforms. Motomic also lets you add media to MQX, for example advertisements or instruction videos. You can add social networking, games and browser functionality to your applications and products. Motomic helps you distribute your Qt application across networks.
    Development for the IoT is also being boosted by the Embedded Software Store. Motomic’s browsers and hundreds of other components for developing embedded software are accessible. Pre-built components allow solutions to be assembled more rapidly and with lower project risk. Complex systems can now be built rapidly by adding pre-built components.
    Innovative solutions like the Embedded Software Store (source of pre-built components for embedded developers), Motomic’s browsers, and ARM’s range of processors are allowing the creativity of developers to envision and build highly innovative solutions for the Internet of Things.
    ARM Embedded Software 2.0 [chipestimate YouTube channel, June 19, 2012]
    Will Tu, Director of Business Development at ARM. IP Talks speaker with ChipEstimate.com at DAC 2012 in San Francisco.
    See more:
    Advances in technology create new problems for today’s embedded developers [Will Tu on Software Enablement blog of ARM, Oct 12, 2011]
    Solving the Challenge of Software Complexity for Today’s Embedded Developer [Will Tu on Software Enablement blog of ARM, Oct 26, 2011]
    Avnet Electronics Marketing and ARM Launch Embedded Software Store [ARM press release, Oct 26, 2011]
    … Users can choose from a broad array of reputable embedded software vendors, including ARM, CMX Systems, Inc., DSP Concepts, Micrium, Motomic, YaSSL, and others. New software vendors are invited to join the initiative on an ongoing basis. The site also offers a quick download delivery system and preview of all license agreements in advance of purchase. Users are encouraged to participate in the Embedded Software Store’s online community to create a strong ecosystem of software support for ARM technology. … The site is fully operational and accessible at www.embeddedsoftwarestore.com

    AvnetEMA and ARM Launch Embedded Software Store [AvnetEMA YouTube channel, Nov 1, 2012]

    Watch a demo of the new Embedded Software Store

    Kinetis L Series & Energy Efficiency: FTF Keynote Demo [freescale YouTube channel, July 31, 2012]

    Freescale Debuts Kinetis L Series, World’s Most Energy-Efficient Microcontrollers [Freescale press release, Jun 19, 2012]

    Freescale Semiconductor (NYSE: FSL) is now offering alpha samples of its Kinetis L series, the industry’s first microcontrollers (MCUs) built on the ARM® Cortex™-M0+ processor. Kinetis L series devices are on display this week at the Freescale Technology Forum (FTF) Americas and were demonstrated during the event’s opening keynote address.
    As machine-to-machine communication expands and network connectivity becomes ubiquitous, many of today’s standalone, entry-level applications will require more intelligence and functionality. With the Kinetis L series, Freescale provides the ideal opportunity for users of legacy 8- and 16-bit architectures to migrate to 32-bit platforms and bring additional intelligence to everyday devices without increasing power consumption and cost or sacrificing space. Applications, such as small appliances, gaming accessories, portable medical systems, audio systems, smart meters, lighting and power control, can now leverage 32-bit capabilities and the scalability needed to expand future product lines – all at 8- and 16-bit price and power consumption levels.
    The ARM Cortex-M0+ processor consumes approximately one-third of the energy of any 8- or 16-bit processor available today, while delivering between two to 40 times more performance. The Kinetis L series supplements the energy efficiency of the core with the latest in low-power MCU platform design, operating modes and energy-saving peripherals. The result is an MCU that consumes just 50 µA/MHz* in very-low-power run (VLPR) mode and can rapidly wake from a reduced power state, process data and return to sleep, extending application battery life. These advantages are demonstrated in the FTF demo, which compares the energy-efficiency characteristics of the Kinetis L series against solutions from Freescale competitors in a CoreMark benchmark analysis.
    *Typical current at 25C, 3V supply, for Very Low Power Run at 4MHz core frequency, 1MHz bus frequency running code from flash with all peripherals off.
    Features common to the Kinetis L series families include:
      • 48 MHz ARM Cortex-M0+ core
      • High-speed 12/16-bit analog-to-digital converters
      • 12-bit digital-to-analog converters
      • High-speed analog comparators
      • Low-power touch sensing with wake-up on touch from reduced power states
      • Powerful timers for a broad range of applications including motor control
        The first three Kinetis L series families:
          • Kinetis L0 family – the entry point into the Kinetis L series. Includes eight to 32 KB of flash memory and ultra-small 4mm x 4mm QFN packages. Pin-compatible with the Freescale 8-bit S08P family. Software- and tool-compatible with all other Kinetis L series families.
          • Kinetis L1 family – with 32 to 256 KB of flash memory and additional communications and analog peripheral options. Compatible with the Kinetis K10 family.
          • Kinetis L2 family – adds USB 2.0 full-speed host/device/OTG. Compatible with the Kinetis K20 family.
            The Kinetis L series is pin- and software-compatible with the Kinetis K series (built on the ARM Cortex-M4 processor), providing a migration path to DSP performance and advanced feature integration.
            Availability and pricing
            Kinetis L series alpha samples are available now, with broad market sample and tool availability planned for Q3. Pricing starts at a suggested resale price of 49 cents (USD) in 10,000-unit quantities. The Freescale Freedom development platform is planned for Q3 availability at a suggested resale price of $12.95 (USD).
            For more information about Kinetis L series MCUs, visit www.freescale.com/Kinetis/Lseries.

            Kinetis L Series MCUs Built on the ARM Cortex-M0+ Core: What is the Plus For? [freescale YouTube channel, May 4, 2012]

            http://www.freescale.com/kinetis/lseries – This informative video will address what is new with the Kinetis L Series MCUs built on the ARM(R) Cortex(TM)-M0+ and what the plus really means.

            World’s Most Energy-efficient Processor From ARM Targets Low-Cost MCU, Sensor and Control Markets [ARM press release, March 13, 2012]

            RM today announced the ARM® Cortex™-M0+ processor, the world’s most energy-efficient microprocessor. The Cortex-M0+ processor has been optimized to deliver ultra low-power, low-cost MCUs for intelligent sensors and smart control systems in a broad range of applications including home appliances, white goods, medical monitoring, metering, lighting and power and motor control devices.
            The 32-bit Cortex-M0+ processor, the latest addition to the ARM Cortex processor family, consumes just 9µA/MHz on a low-cost 90nm LP process, around one third of the energy of any 8- or 16-bit processor available today, while delivering significantly higher performance.
            The Internet of Things will change the world as we know it, improving energy efficiency, safety, and convenience,” said Tom R. Halfhill, a senior analyst with The Linley Group and senior editor of Microprocessor Report. “Ubiquitous network connectivity is useful for almost everything – from adaptive room lighting and online video gaming to smart sensors and motor control. But it requires extremely low-cost, low-power processors that still can deliver good performance. The ARM Cortex-M0+ processor brings 32-bit horsepower to flyweight chips, and it will be suitable for a broad range of industrial and consumer applications.”
            The new processor builds on the successful low-power and silicon-proven Cortex-M0 processor which has been licensed more than 50 times by leading silicon vendors, and has been redesigned from the ground up to add a number of significant new features. These include single-cycle IO to speed access to GPIO and peripherals, improved debug and trace capability and a 2-stage pipeline to reduce the number of cycles per instruction (CPI) and improve Flash accesses, further reducing power consumption.
            The Cortex-M0+ processor takes advantage of the same easy-to-use, C friendly programmer’s model, and is binary compatible with existing Cortex-M0 processor tools and RTOS. Along with all Cortex-M series processors it enjoys full support from the ARM Cortex-M ecosystem and software compatibility enables simple migration to the higher-performance Cortex-M3 and Cortex-M4 processors.
            Early licensees of the Cortex-M0+ processor include Freescale and NXP Semiconductor. … The Cortex-M0+ processor is ideally suited for implementation with the Artisan® 7-track SC7 Ultra High Density Standard Cell Library and Power Management Kit (PMK) to fully capitalize on the ground-breaking low power features of the processor.
            The Cortex-M0+ processor is fully supported from launch by the ARM Keil™ Microcontroller Development Kit, which integrates the ARM compilation tools with the Keil µVision IDE and debugger. Widely acknowledged as the world’s most popular development environment for microcontrollers, MDK together with the ULINK family of debug adapters now supports the new trace features available in the Cortex-M0+ processor. By utilizing these tools, ARM Partners can take advantage of a tightly coupled application development environment to rapidly realize the performance and ultra low-power features of the Cortex-M0+ processor.
            The processor is also supported by third-party tool and RTOS vendors including CodeSourcery, Code Red, Express Logic, IAR Systems, Mentor Graphics, Micrium and SEGGER.

            Module 1: Kinetis-L Introduction and Overview of Features [AvnetEMA YouTube channel, Aug 3, 2012]

            Avnet Electronics Marketing presents a short overview of the ultra-low power, scaleable, feature-rich and easy — Cortex M0+ based Kinetis-L Series (32-bit ARM functionality with 8-bit ease-of-use)

            Module 2: Kinetis-L Ultra Low-Power Features [AvnetEMA YouTube channel, Aug 3, 2012]

            image

            More information:
            ARM Cortex-M0+: More than a low-power processor [Thomas Ensergueix on Embedded ARM blog, June 19, 2012]: “The Cortex-M0 MCU was quite unique when launched in 2009, offering a subtle mix of low-power, 32-bit performance and optimized code size, all of this packed in a very low gate count processor. … The new implementation of the very same ARMv6-M architecture with a 2-stage pipeline in Cortex-M0+ has given us 9% more performance while reducing the power consumption by around 30%.
            Introducing the ARM Cortex-M0+ processor: The Ultimate in Low Power [ARM whitepaper by Joseph Liu, May 4, 2012]
            ARM Cortex-M0+ Takes Flight on the Wings of Freescale’s Kinetis L Series [Danny Basler from Freescale as a guest partner blogger on Embedded ARM blog, March 14, 2012]
            FTF 2012 and Everything ARM [Drew Barbier on ARM Embedded blog, Aug 1, 2012]
            The Freedom Board [Erich Styger on Software Meets Silicon blog of Freescale, July 27, 2012]: “… my Freescale Kinetis L series Freedom board arrived. … The board will be available at Element 14/Farnell. It is expected to be publicly available by the end of September 2012, and you can pre-order now. The United States Element 14 site will have the board available for a suggested resale price of $12.95 (USD). In Europe it will be about 10 Euro. …
            Freescale ARM technology powerhouse in action [The Embedded Beat (all posts) blog of Freescale, June 19, 2012]: “Freescale has become an ARM technology powerhouse, offering the most unique and massively broad portfolio on the market today. It starts with our Kinetis portfolio, and the new Kinetis L series based on the ARM Cortex™-M0+ core, extends to the new Vybrid controller solutions [featuring a unique dual core ARM Cortex-A5 + Cortex-M4 architecture that handles both MCU and MPU tasks on a single chip] that enable rich apps in real time,  and stretches to the ultimate multimedia and display solution – the scalable i.MX 6 series [based on the ARM® Cortex™-A9 architecture].

            Continuing with the ARM Holdings Management Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, July 25, 2012]

            We now have nearly 900 licenses, and so that continues to grow. The pool of licenses that are out there to generate royalties for the future. If I look at just quarter on its own, 23 licenses in total, collection of Cortex-A licenses, including our 12 big.LITTLE licensee. So we’ve now got 12 partners signed up for big.LITTLE. At the other end of this scale, the microcontroller end, I was just talking about the Internet of Things, yes, more licensing of our Cortex-M products.

            image
            And our new architecture, the v8 architecture, the 64-bit stuff, we’ve now got 9 v8 licensees, including the latest architecture licensee. And we’ve got this rather, it’s with — rather ill-defined horizontal axis of time going along the slide here. We are at the stage where we’ve done a lot of lead licensing now. We are approaching the first Silicon, the product launch type phase and so the 64-bit program is on track. And the interesting thing about our 64-bit architecture, it is not just about high-end computing and servers, it’s actually people talking about using it and the mobile as well, talking about using it in infrastructure applications, some of the networking applications that I talked about a moment or 2 ago.

            ARM in Networking and Servers

            • imageLeading networking companies choosing ARM processor technology
              – Another v8 architecture licensee for intelligent networking applications
              – Freescale announced their first ARM-based chip for infrastructure applications
              – HiSilicon, LSI, TI and Xilinx have already announced ARM-based chips for networking
            … these smartphones, computers and everything, they have — they communicate and that communication means that they’re getting data from somewhere or they’re sending data somewhere. They’re sending over some data handling infrastructure. And the explosion in smartphones and more mobile computing and prevalence of the Internet is generating much more data. Some study suggests as much as 20x as much data over the sort of 10-year period from 2010 to 2020. And clearly, if that data is handled with the existing architecture, it’s going to consume 20x as much power, which is not a very sustainable situation. If you look at all the electricity generated in the world, then IT equipment accounts for about 10% of it, and if that is going to increase by a factor of 20, then we’ll going to have to build a lot more power stations. So that isn’t going to happen. People are going to look for more power efficient ways of designing this stuff, and here is the opportunity for ARM in networking. And so you see, as I mentioned a moment ago, a new v8 architecture licensee engaged in ARM in networking.
            Freescale, I wasn’t there, Freescale technology forum a few weeks ago. Freescale busy announcing their extensive networking product range, switching to adopt the ARM architecture. We’ve seen similar indications from HiSilicon, LSI, TI, Xilinx and so on. Everybody is realizing that in order to get more power efficient products here, then ARM is a great solution. imageAnd it’s the same power efficiency story, which is behind ARM’s activity in servers.
            • Servers bringing new opportunities
              – Dell launches ARM-based server with 48 quad-core chips by Marvell
              – Calxeda demonstrated 15x power/performance improvement
              – Canonical announces server grade software for ARM-based chips

            ARM Holdings Management Discusses Q2 2012 Results – Earnings Call Transcript, Question-and-Answer Session [Seeking Alpha, July 25, 2012]

            Unknown Analyst … you’ve been talking about 64-bits sort of v8 architecture taping out relatively soon. Maybe you could — if you could give us a bit more details on what type of products would come on the market in the next 12 months for these 64-bit, if it’s only servers and other things.

            D. Warren A. East

            … On the second question, about 64-bits, then as I said in the presentation, it’s being used across a range of different applications, including mobile and computing. Servers is a very visible application area, where as we’ve said before, our penetration in the server market is limited until such time as we deploy 64-bit solutions. And I think it’s well known that one of our early 64-bit architecture licensees is targeting server applications and so probably, you’ll see that Silicon fairly early on. If we move along and move back.

            Unknown Analyst I think, Calxeda provided some interesting milestones this quarter in terms of the server progress. I’m just wondering, whether you can talk to how you feel the progress is going there in terms of actual sort of processing. Secondly, I just wondered whether — part of interesting slide just on the multi-core effect in the quarter, I just wondered, whether you have a sense of how much of your units shipped in mobile today is actually on quad-core based devices, versus dual-core, so the impact of quad-core presumably is still to come.
            D. Warren A. East
            Okay. On Calxeda and the server activity, I really don’t have anything else to say. We’re very pleased with the progress. The data that’s coming out suggests that all the experiments that we did before and all the simulation that we did before is being proven in Silicon. And bear in mind, this first Calxeda Silicon is actually Cortex-A9 based. And so I think I said Cortex-A9 was a core we developed very much with mobile in mind. Calxeda have added System-on-Chip infrastructure to turn into a server chip but it’s still a microprocessor core that was designed for mobile. When you put that server infrastructure around the microprocessor core that’s been a bit more designed with server applications in mind, like for instance, Cortex-A15, or moving onto v8, then you’re going to see even better performance at these levels of power consumption. But we’re very pleased with the data that’s come out so far. We’re also pleased to see other ARM Silicon partners starting to get a bit more public with their activity on the servers. The dual-core, quad-core, I don’t know that I can talk specifically about numbers, but I’ll just point you to shows like Mobile World Congress and CES, where what tends to happen is that you sort of have an announcement about products 1 year, and they turn into reality the next year. And we saw in the 2011 season, a load of dual-core devices being announced and they’ve now sort of materialized into phones. And it was about a year later at these shows that we saw the quad-core products announced and so we’d expect that sort of trajectory to continue. Over and above that, some people have gone a little bit further ahead with the quad-core and they’re using it as a sort of marketing tool and saying that the quad is better than dual. It’s a bit of a marketing thing. And it’s up to us semiconductor partners to see what performance they can actually — for what performance for a given level of power consumption they can actually achieve. We put it up on the slide as multi-core, and put the 2 together, because that’s really how we view it.

            Kai Korschelt – Deutsche Bank AG, Research Division
            … just on a like-for-like perspective, if you could remind us maybe of the potential royalty premium for a 64-bit versus 32-bit, please?

            D. Warren A. East

            … On 64-bit premium for — or sort of royalty premium for 64-bit, I mean this is a continuation of the trend we’ve been on for a while, where, basically, if there’s more value in the microprocessor, they royalty comes through with a higher rate. And we’ve talked about Cortex-A being sort of typically in the sort of 1.5% to 2% range, compared with preCortex-A being more in the sort of 1% to 1.5% range. And that trend will continue with our v8 architecture, so it’s going to be at the higher-end of that range.

            ARM Holdings Management Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, July 25, 2012]

            64-bit, Physical IP and FinFET

            • TSMC and ARM announce collaboration to optimise ARM’s 64-bit processors and Physical IP and TSMC’s FinFET technology
              – Optimization of ARM’s next generation processors and TSMC’s state of the art process technology
              – Companies’ joint work will accelerate the adoption of SoC optimized FinFET technology
              – Allows ARM’s and TSMC’s partners to develop market leading products for high-performance and low-power applications like mobile and enterprise

            Now looking ahead to a more leading edge technologies, as I said, we had an announcement earlier this week with TSMC, and this is ARM and the biggest independent semiconductor wafer fab or foundry company in the world getting together to actually continue work that’s been ongoing together for quite a long time, in terms of optimizing their process technology, working with physical IP division to optimize our physical IP on their new FinFET process, and using our new 64-bit processor as a vehicle for that development. So it’s world leading companies getting together to work from transistors right through its microprocessors to enable our joint partners to produce world leading products.

            ARM Holdings Management Discusses Q2 2012 Results – Earnings Call Transcript, Question-and-Answer Session [Seeking Alpha, July 25, 2012]

            Unknown Analyst

            … So on the FinFETs with TSMC, can you give us, maybe a bit more comments about this? How do you think it compares with Intel 3D, or whatever they call it? And how involved your PIPD team is involved trying [ph] to transistors characteristics, absorbs transistors? And also, I think the timing has been brought forward by 1 year, I think. So that’s the first question. …

            D. Warren A. East
            Dealing with the FinFETs first. A year or so ago, when Intel took technology, we said yes. So this is something which has been around in the semiconductor industry for the last decade or more. It’s one of the ways of making transistors more efficient, but it comes with a load of associated challenges that are actually making this stuff and making them yield and that sort holds back the semiconductor industry from taking that step. Intel took the step and announced that they’ve taken the step. They were the first ones over the gate, announcing that they were doing this. Of course, everybody else has been the same, researching it and playing with it for the best part of the last decade. And TSMC had their plans in place. They just were not choosing to go public on FinFET until they were choosing to go public. And we’ve been working with TSMC on their next-generation processes for some time. We always stood here and done presentations and talked about tape outs on 20nm, the first ARM tape out on 20nm was well over a year ago. We’ve taped out first 40nm designs already with some of these players and its R&D activity. As and when the foundry wants to make some of these things public, then they will, and that’s what TSMC have chosen to do this week. And they chose to, I guess, communicate particularly with their customers who are ARM partners by saying, “Not only are we doing some process development in the back room, but we’re also thinking about how you’re going to take this technology to market, the sort of products you’re going to built with it. You’re probably going to build ARM-based products with it, and so we’ve been working with ARM and ARM’s physical IP division to make sure that their physical IP, their microprocessors and our semiconductor process technology, works well together. And that’s all there is to it.”

            Janardan Menon – Liberum Capital Limited, Research Division
            Two questions. One is on the FinFET agreement with the TSMC, it’s on 64-bit. So I’m just wondering what plans you have on moving the 32-bit, Cortex-A15 kind of products to FinFET? DO you have another agreement with them which we don’t know about and will the timing of the introduction of that be roughly the same as the 64-bit signed?

            D. Warren A. East

            Okay. Well, let’s answer the first one. The FinFETs, yes, the announcement is, with our 64-bit processor because just as we want to work with TSMC’s most advanced process technology, they want to work with our most advanced microprocessor, making a 20nm FinFET and later, a 16nm FinFET implementation so that our 32-bit processors will form naturally out of that development activity. We’re optimizing our physical IP to build microprocessors. We just happen to be using our new 64-bit processor as the vehicle for it. The same physical IP will be very easily used to implement our 32-bit processors.
            Janardan Menon – Liberum Capital Limited, Research Division
            And with your — as part of the timescale of introductions, is that a 2014 introduction or is it ’15?
            D. Warren A. East
            Well, we have to stick with the announcements for now. And I think as and when TSMC want to make more comments on when these things are available, then they’ll make more comments. As I said, from a development point of view, we’re taping out stuff all the time. …
            Sumant Wahi – Redburn Partners LLP, Research Division
            … The second question has to do with the FinFET again. Am I doing — most of the foundries are sort of offering different known transition and in between, I assume, a FinFET would be, an option in between 20nm and probably 16nm. So my question really was that, would you be licensing FinFET technologies separately as well, or is this an exclusive collaboration with TSMC? And then is there a royalty increase coming from products based on FinFET, PIPD, so to speak? …
            D. Warren A. East
            Okay. Next question was about FinFET and whether it’s essentially a different physical IP product from ARM. And the answer is, well, it’s a different flavor. We have different flavors of our physical IP for each semiconductor process. And so a low-power version of a given note is a different physical IP bundle than a high-profile version. And the FinFET is another flavor again. So it would be an incremental licensing opportunity. But the fact that our physical IP is used, would generate the royalty opportunity. But it’s not an incremental royalty opportunity. The fact that it’s FinFET, it’s just another flavor. So if we’re going to have a 20nm low-power plainer flavor and the FinFET flavor, and the chips are going to be made out of one process technology, and so the royalty opportunity is the same. …

            ARM and TSMC Collaborate to Optimize Next-Generation 64-bit ARM Processors for FinFET Process Technology [ARM press release, July 23, 2012]

            TSMC (TWSE: 2330, NYSE: TSM) and ARM today announced a multi-year agreement extending their collaboration beyond 20-nanometer (nm) technology to deliver ARM processors on FinFET transistors, enabling the fabless industry to extend its market leadership in application processors.  The collaboration will optimize the next generation of 64-bit ARM® processors based on the ARMv8 architecture, ARM Artisan® physical intellectual property (IP), and TSMC’s FinFET process technology for use in mobile and enterprise markets that require both high performance and energy efficiency.  

            … The ARMv8 architecture extends ARM low-power leadership with a new energy-efficient 64-bit execution state to meet the performance demands of high-end mobile, enterprise and server applications. The 64-bit architecture has been designed specifically to enable energy-efficient implementations. Similarly, the 64-bit memory addressing and high-end performance are necessary to enable enterprise computing and network infrastructure that are fundamental for the mobile and cloud-computing markets. 
            TSMC’s FinFET process promises impressive speed and power improvements as well as leakage reduction.  All of these advantages overcome challenges that have become critical barriers to further scaling of advanced SoC technology.  ARM processors and physical IP will be able to leverage these attributes to maintain market leadership, while the companies’ mutual customers can benefit from these improvements for their new, innovative SoC designs. …

            ARM and TSMC Sign Long-Term Strategic Agreement [ARM press release, July 20, 2010]

            ARM and Taiwan Semiconductor Manufacturing Company, Ltd. (TWSE: 2330, NYSE: TSM) today jointly announced a long-term agreement that provides TSMC with access to a broad range of ARM processors and enables the development of ARM physical IP across TSMC technology nodes. This agreement supports the companies’ mutual customers to achieve optimized Systems-On-Chip (SoC) based on ARM processors and covers a wide range of process nodes extending down to 20nm. …

            ARM and TSMC Tape Out First 20nm ARM Cortex-A15 Multicore Processor [ARM press release, Oct 18, 2011]

            ARM and TSMC (TWSE: 2330, NYSE: TSM) today announced that they have taped out the first 20nm ARM® Cortex™-A15 MPCore™ processor. The two companies completed the implementation from RTL to tape out in six months using TSMC’s Open Innovation Platform® (OIP) 20nm design ecosystem.

            Building on this tape out, ARM will optimize its physical IP technology to specific TSMC 20nm process technologies for Power, Performance and Area (PPA), driving the specification of the Cortex-A15 Processor Optimization Pack (POP). TSMC’s 20nm process provides more than a 2X performance increase over preceding generations.

            FINFET: Has its time finally come for a sub – 20nm 3D device? [Jean Luc Pelloie Fellow Director of SOI Technology on the ARM SoC Design blog of ARM, Dec 21, 2011]

            … As we move to 20nm and beyond process technology, Fin-FET design may earn its place as the technology path of the future. … Fin-FET or tri-gate may be implemented on either bulk or SOI wafers.  … There is still work to be done, i.e. variability is expected to be different between SOI and bulk versions and needs to be quantified; … However, 3D devices are clearly on the road for sub-20nm nodes…and Fin-FET’s time may finally be here.

            Firms Rethink Fabless-Foundry Model [SemiMD (Semiconductor Manufacturing and Design), July 31, 2012]

            TSMC, for one, plans to accelerate its finFET efforts. Originally, TSMC planned to introduce finFETs at 14nm by late 2014. Now, the company has no plans to brand its finFETs at 14nm, but rather it will introduce the technology at 16nm. TSMC’s finFET “risk production” is slated for the end of 2013 or early 2014, with production scheduled for the second half of 2015, Chang said.

            Taiwan Semiconductor’s CEO Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, July 19, 2012]

            … our 20 nanometer SoC, we believe, is fully competitive with industry leaders, other companies’ 22 nanometer for the served available markets that we serve. For our markets, we believe our 20 SoC is fully competitive with anyone’s 20 nanometer or 22 nanometer offering.
            And, one important point to make is that our 20 nanometer has the industry’s leading metal pitch of 64 nanometers. Our leading competitors have 80 nanometer metal pitch. That allows an advantage in the device’s density and die size.
            Now, as for the timing, we expect our 20 nanometer technology to be qualified by the end of this year and will be ready to support customers (inaudible) in Q1 of 2013.
            Now today, last time I mentioned that we will have a FinFET product after 20 SoC. And today, I’m glad to say that we have been planning the 16 nanometer FinFET. Right after our 20 nanometer (inaudible), which is the 20 SoC, we will offer FinFET at 16 nanometer for significant active power reduction. We expect to achieve speed and density, speed and logic density levels comparable to industry’s leading players 14 nanometer FinFET.
            So, we expect our 20 SoC to be competitive with competitors’ 22 nanometer or 20 nanometer products and we expect our 16 nanometer FinFET to be competitive with our competitors’ 14 nanometer FinFET products. You might ask why are we calling it 16. The only reason, in fact, until two days ago, we were undecided on whether to call it 14 or 16 FinFET. Now the only reason we decided to call it 16 FinFET is first, we want to be somewhat modest; second, we are told quite a few major customers ask the 16 FinFET, that designation and we didn’t want to confuse our customers by now switching to 14. But we expect it to be competitive with other people’s 14 nanometer offerings.
            Now 16 nanometer FinFET, our 16 nanometer FinFET, is expected to deliver about 25% speed gain given the same standby power over the 20 nanometer SoC. It is expected to give 25% to 30% power reduction at the same speed and the same standby power, and for mobile products, it is expected to give 10% to 20% speed gain at the same total power. As for timing, we expect it to be about one year after 20 SoC namely it should be ready for risk production at the end of 2013 or early 2014, about one year later than the 20 SoC.
            [from Q&A session]
            20-SoC which is 20-nanometer will ramp in 2014. And we believe that the 16 FinFET will ramp in, perhaps the second half of 2015. …

            – When sticking with a “David”: CAST Inc.

            Decreasing Risk When Selecting Third-Party Semiconductor IP (49th DAC) [castcores YouTube channel, July 17, 2012]

            In this presentation captured live at the 49th DAC (June 4, 2012), CAST president Hal Barbour describes ways electronic circuit and system designers can help ensure project success through careful selection of IP cores. Specific examples in the talk are drawn from CAST’s 18 years of semiconductor IP experience and include 8051 MCUs, H.264 and JPEG 2000 compression, and effective customer support for IP users. See more of CAST’s low-risk ASIC and FPGA IP product line and learn about the company at http://www.cast-inc.com. Or jump to these cores mentioned in the talk: • 8051 MCU – http://www.cast-inc.com/ip-cores/8051s/r8051xc2/index.html • H.264 Video – Encoder http://www.cast-inc.com/ip-cores/video/h264-mp-e/index.html • J2K Encoder – http://www.cast-inc.com/ip-cores/images/jpeg2k-e/index.html

            Leapfrogging The Competition Through Smart IP Selection [GSA Intellectual Property blog, March 30, 2012]

            Nikos Zervas, VP of Marketing, CAST, Inc.

            The adoption of a reliable design reuse methodology, proliferation of high-quality IP products, and shake-out of the most untrustworthy IP vendors creates a situation offering a huge potential advantage to system integrators and product designers looking to jump ahead of their competition.

            Instead of choosing the same big-vendor, star IP that most competitors may pick by default, smarter firms will seek out and commit to what might be technically-superior IP products from smaller vendors/partners who will offer both deeper and broader service and support.

            A good example is regarding microprocessors and controllers, the heart of most systems and usually the first, most critical system design choice.

            Consider a deeply embedded system that needs the power of a 32-bit processor. Much like that saying from the 1980′s that when choosing PCs “nobody gets fired for buying an IBM,” choosing a processor from the leading processor company is probably the easiest, safest choice, and it’s certainly an undeniably fine product with an extremely effective ecosystem. But making this choice might mean missing an opportunity for differentiation in a competitive market where every advantage is required for success.

            The IP portal sites list many 32-bit processor core options beyond the leading processor company, with Chip Estimate and Design and Reuse each returning nearly 300 results for such a search. More significantly, I count almost 30 different providers of these products. Certainly some of these vendors offer a product, support, or licensing terms—or perhaps even all three—that could give the smart designer a critical edge.

            Six of these stand out as being especially popular based on my recent visits with designers in California and Asia:

            • the AndesCore from Andes Technology,
            • the BA22 developed by Beyond Semiconductor and available from CAST, Inc. (disclosure: I work for CAST),
            • the ColdFire from IPextreme
            • the eSi-3250 from EnSilica,
            • the LEON3 from Aeroflex Gaisler, and
            • the MIPS 4KS and others from MIPS Technologies.
            How can you determine if options like these have sufficient benefits to outweigh the risk of not going with the leading processor company? Comparisons can be tricky, but there are a few key points to start with.
            The technical suitability and potential advantages of course depend on the detailed needs of your system. A good IP sales team will help you articulate the relevant characteristics of your project and make sure their product will work well before selling it to you.
            Quick comparisons of the performance and operating characteristics is made easier through the publication of well accepted power consumption and speed measures, like the CoreMark performance and CSiBC code density standards. Be sure, however, to look deeper to fully understand the specific configuration and technology details behind each vendor’s figures compared to that of your own target system.
            Ecosystems for programming and system development aids are a hot processor marketing topic. Be sure that the basics are covered: effective software programming tools such as the GNU tool chain, JTAG debugging, and ports of the RTOS or OS you want to use. A graphical IDE, support from tool vendors like Keil or Lauterbach, and eval/dev board kits are extras that can help further accelerate development.
            Licensing terms and actual costs can vary dramatically. For example, some vendors rely on royalty streams for their profits, while others have simpler up-front licensing fees with no royalties. What’s best for you depends on your specific product and market plans.
            Finally, credibility of the processor and the vendor are both crucial. For the former, look to successful use by other customers with applications similar to your own. For the latter, look for business longevity and general reputation, backed by your own experiences with the provider’s sales and engineering people. Try to extrapolate from a vendor’s pre-sale support how effective their integration help and other technical support services will be after you purchase from them.

            The examples of 32-bit processor alternatives I listed earlier all compare favorably with the leading processor company’s products in these factors; any might be the one to give you the extra technical, timeframe, or cost edge you need to make your product more competitive.

            The same is true of most other areas of semiconductor IP. Now that our industry embraces the use of third-party IP, the smartest designers will get a major payback from putting up-front effort into investigating the very best IP for their specific needs, whether that initially seems like the “safe” choice or not.

            (Note: all trademarks and registered trademarks mentioned here are the property of their respective owners.)
            About Nikos Zervas
            Nikos is the VP of Marketing for CAST, Inc. Before joining CAST in 2010, Nikos was a co-founder, chairman, and CEO of video/image SIP vendor Alma Technologies, SA [Pikermi, Greece]. He has been a member of the board for the Hellenic Silicon Industry Association since 2009, and he is a senior member of IEEE. Nikos holds BA and PhD degrees in Electrical and Computer Engineering from the University of Patras, Greece, and has published over forty papers in referenced journals and international conferences.
            Additional information:
            AndesCore™ from Andes Technology (founded in Taiwan in 2005) with AndeStar™ ISA:
            AndeStar is a patent-pending 16-bit/32-bit mixed-length instruction set to achieve optimal system performance, code density, and power efficiency.
            Freescale™ ColdFire Architecture IP
            Our extensive collection of ColdFire IP gives you the flexibility to choose the best solution for your cost/performance requirements while benefiting from the huge ecosystem of development resources available for the ColdFire architecture. Deployed in over 500 million devices worldwide, ColdFire is one of the world’s most widely-used 32-bit processor architectures. And the modern implementations of the ColdFire architecture, proven in devices from Freescale Semiconductor and available as synthesizable IP from IPextreme, provide performance and reliability that rival any similarly featured 32-bit processor IP.
            All ColdFire cores feature a variable-length RISC architecture for compact code and are supported by an extensive collection of development systems, tools, libraries, and operating systems from Freescale and several third-party commercial and open-source providers.
            Beyond BA22 Processor [Beyond Semiconductor web page, Dec 17, 2007] from privately held Slovenian fabless semiconductor IP company Beyond Semiconductor sold, supported, and built within platforms by CAST Inc. worldwide:
            Beyond BA22 Processor is the first implementation of Beyond BA2 Architecture processor. It’s main design goal was to minimize code size, gate and flip-flop count while obtaining similar performance as Beyond BA12 processor. The processor is extremely configurable, allowing for variety of size/performance trade-offs.
            Note: more Beyond BA22 related information is given later on as part of the CAST-related information
            eSi-3250 – 32-bit, high-performance CPU [EnSilica (UK) web page, Oct 11, 2009]
            EnSilica’s eSi-3250 CPU IP core is a high-performance processor ideal for integration into ASIC and/or FPGA designs with off-chip memories. The eSi-3250 is suited to a wide range of applications including running complex operating systems such as Linux.
            Scalability
            ImageFor applications that require do not require off-chip memory, the smaller eSi-3200 is available. For even simpler applications that do not require 32-bit performance or more than 64kB of memory, the eSi-1600 16-bit processor can be used. All of the eSi-RISC processors RTL and toolchains share a common code base, resulting in an easy migration path for both software and hardware developers, should the demands of an application change.
            LEON3 Processor [Aeroflex Gaisler (Sweden’s Gaisler acquired by US based Aeroflex) webpage, March 28, 2005]
            The LEON3 is a synthesisable VHDL model of a 32-bit processor compliant with the SPARC V8 architecture. The model is highly configurable, and particularly suitable for system-on-a-chip (SOC) designs. The full source code is available under the GNU GPL license, allowing free and unlimited use for research and education. LEON3 is also available under a low-cost commercial license, allowing it to be used in any commercial application to a fraction of the cost of comparable IP cores.
            MIPS32® 4KS™ Family [MIPS web page, Feb 28, 2003]
            The MIPS32® 4KSd™ secure data core is a high-performance processor that meets the needs of emerging secure data applications and the stringent power, security and size requirements for smart cards. This core has the performance required to implement software programmable cryptography without the need of a coprocessor, reducing SoC size and power consumption. The 4KSd core is the most secure, licensable, 32-bit processor available.
            End of additional information

            ChipEstimate.com DAC 2012 IP Talks presenter Nikos Zervas [chipestimate YouTube channel, June 21, 2012]

            Nikos Zervas, VP of Marketing, CAST. IP Talks presenter with ChipEstimate.com IP Talks at DAC 2012 in San Francisco. Leapfrogging Your Competition Through Smart IP Selection. For more information about CAST, go to: http://www.chipestimate.com/prime-partner/140/CAST-IP-Catalog

            Additional information:

            Meet Our New VP of Marketing [IP Notes from CAST, Inc., Sept 9, 2010]
            We’re very pleased to announce our new Vice President of Marketing, Nikos D. Zervas.
            Why did you join CAST?
            CAST has an industry reputation for being an IP vendor customers can really trust, with solid products and great support. Solving difficult technical challenges still excites me, of course, but my nine years working alongside CAST have shown me that having a passionate drive to help customers then earning the satisfaction of seeing those customers succeed can be just as rewarding.
            When the opportunity rose to join the impressive team at CAST, help grow the company, and further the ideal of easier design through IP, it seemed like the right time in my career for just such a move.
            What trends do you see for the IP market over the next year?
            Design reuse was become accepted for reducing risk and minimizing time to market. With this acceptance—and the fast-increasing rates of design complexity growth and design cycle shrinkage—I believe designers will move beyond specific functional cores to seek broader IP systems and complete solutions, like CAST’s recent H.264 Reference Design System. I think CAST is well positioned to supply this need, and that I can help them succeed with this next stage of growth.

            CAST Interview at DesignCon 2012 [castcores YouTube channel, Feb 14, 2012]

            EDACafe’s Graham Bell interviews CAST VP of marketing Nikos Zervas. Nikos discusses the new BA22 32-bit processor (http://bit.ly/ba22-32bit)—subject of a successful design seminar and booth demos at the show—as well as other recent new cores and the firm’s extreme commitment to customer support. Learn more about CAST at http://www.cat-inc.com.
            Fast JPEG Encoder Core from CAST Used in Fastec TS3 High-Speed Camera [CAST press release, March 6, 2012]
            Fastec Imaging Corporation has incorporated a JPEG Encoder IP Core from CAST, Inc. in its groundbreaking TS3™ line of handheld, high-speed digital cameras.
            ts3-shoot2-01 2 640x425.jpgSourced from long-time CAST partner Alma Technologies SA, the JPEG-E Encoder Core is one of the fastest-available baseline JPEG compression cores. This enables extremely competitive functionality for Fastec’s TS3 high-speed digital cameras, including capture of 1280 x 1024 pixel images at 500 frames per second, or 800 x 600 at 1,250 fps.
            “The quality of the core plus CAST’s ts3-shoot2-22.jpgdetermination to see us succeed were both instrumental in bringing our groundbreaking handheld high-speed camera, the TS3, to market on time and on spec.,” said Bob Sefton, principal FPGA design engineer at Fastec. “The JPEG encoder’s features and excellent performance were as specified, and the system integration was so easy I didn’t need CAST’s technical support services.”
            ts3-shoot2-302.jpgThe encoder core supports the Baseline Sequential DCT mode of the JPEG standard and is suitable for still-image or motion-JPEG capture. This third-generation core offers very fast JPEG compression—up to 750 MSamples/sec in a 65nm technology—yet is compact enough to fit low-cost FPGA devices.
            A bit-rate control option further benefits bandwidth-limited applications. “We envisioned demanding customer applications like Fastec’s when designing the JPEG encoder,” said Spyros Theoharis, vice president of products and technology at Alma Technologies. “It’s exciting to see yet another customer release of such a remarkable product using our technology and CAST’s support.”
            The JPEG-E core is part of a comprehensive family of image and video IP cores offered by CAST.

            A First look at the Fastec TS3 Camera [FastecImaging YouTube channel, May 30, 2012]

            TS3 slow motion nature footage shot at 720p at 718fps. Footage includes moving water, falling rocks and leaves in slow motion. Filmed and edited by Tom Guilmette.

            Butterflies caught on High Speed Camera [FastecImaging YouTube channel, May 30, 2012]

            Beautiful slow motion footage of colorful Butterflies caught on the Fastec TS3 High Speed Camera by Tom Guilmette at a local greenhouse

            Mentos and Diet Coke Geyser in Slow Motion [FastecImaging YouTube channel, July 6, 2012]

            Mentos and Diet Coke geyser shot with a Fastec TS3 100 High Speed Camera at 700 frames per second.
            The New Handheld TS3 100 High-Speed Camera [Fastec Imaging press release, July 10, 2012]
            Fastec Imaging, a leading global manufacturer of digital high-speed video cameras has, once again, taken the high-speed imaging world by storm with the release of the revolutionary new TS3 100 handheld high-speed camera. This portable, affordable, battery operated camera puts all the power of a high end, high-speed camera, in the palm of your hand!
            “We wanted to create a high-speed camera that was going to be easy to use, versatile and very portable, unlike many of the other cameras in this field,” explains Steve Ferrell, President of Fastec Imaging. “The TS3 combines the power, speed, resolution and light sensitivity of our renowned HiSpec camera line with the portability and ease of use of our previous handheld ‘point and shoot’ high speed cameras. The result is a completely portable and intuitive high-speed camera with the ease of use of a DSLR.”
            The TS3 100 captures 500 frames per second (fps) at 1280 x 1024 pixels and over 20,000 fps at reduced resolutions, making it the perfect high-speed camera for broadcast, research and industrial applications. Featuring a built-in 7’’ high resolution touchscreen LCD, the TS3 allows for instant playback of footage out in the field.  Combine that with an industry leading 4 hour battery, and it is easy to see why the TS3 100 is quickly becoming so popular.
            Unlike any other high speed camera on the market today, the TS3 100 offers unmatched versatility.  Not only is it an intuitive point- and-shoot handheld camera, but it can also be controlled over Gigabit Ethernet via a PC or MAC, or even over the Internet using a standard web browser for long distance control. The TS3 also features both USB ports and SD ports allowing users to easily download images to thumb drives, SD cards, or portable hard drives. Additionally, an optional built-in SSD, (Solid State Drive), provides for up to 256GB of non-volatile internal storage. This allows for shooting all day long without having to download to a computer.
            “The response to the TS3 has been overwhelming”, says Ferrell. “Its ease of use and affordability makes the TS3 one of the most accessible high-speed video cameras on the market and a perfect solution for researchers and manufacturers as well as TV and film producers.”
            For more information about the TS3 and other Fastec products, visit the web site at www.fastecimaging.com.

            Beyond BA22 Processor [Beyond Semiconductor webpage, Dec 17, 2007] from privately held Slovenian fabless semiconductor IP company Beyond Semiconductor:
            Beyond BA22 Processor is the first implementation of Beyond BA2 Architecture processor. It’s main design goal was to minimize code size, gate and flip-flop count while obtaining similar performance as Beyond BA12 processor. The processor is extremely configurable, allowing for variety of size/performance trade-offs.
            Embedded Processor Cores [Beyond Semiconductor webpage, May 7, 2007]

            ARM9™, ARM11™, ARM Cortex™-A9 and ARM Thumb®-2 are registered trademarks of ARM Holdings PLC.
            OpenRISC [Beyond Semiconductor webpage, Sept 1, 2007]
            Product Status – Obsolete
            OpenRISC was an open source hardware RISC CPU designed by Damjan Lampret, one of the contributors of OpenCores, released under the GNU Lesser General Public License. The OpenRISC OR1000 and OR1200 are no longer under active development, and are not recommended for new products.
            Beyond Semiconductor can provide commercial support for OR1000 and OR1200 processors.
            The Beyond BA12 Embedded Processor is an up-to-date, fully supported commercial version of OpenRISC, including many enhancements, integrated software development tool suite, development platforms and software debug tools.
            CAST and Beyond Semiconductor enter 32-bit Processor Core Partnership [joint press release, June 3, 2011]
            CAST to sell, support, and build platforms around the BA22 processor IP core from Beyond Semiconductor
            San Diego, CA – June 3, 2011, 48th DAC – Semiconductor intellectual property (IP) provider CAST, Inc. has reached an agreement with Beyond Semiconductor by which CAST will provide Beyond Semiconductor’s BA22 processor core worldwide.
            The BA22 is a fast, compact, power-saving, 32-bit RISC processor that CAST will offer without royalties. These capabilities plus easy development and integration features make the processor an excellent step up for CAST’s large base of 8-bit 8051 customers who need more processing power. In fact, the BA22’s programming code is so efficient that systems using it may require less silicon area than an 8051 with its respective code and memory.
            CAST will package the affordable BA22 with peripheral controllers and other essential IP. The initial focus is on deeply embedded systems; later platforms will exploit the processor’s scalability and performance potential to support broader applications.
            The platform approach gives customers a ready-to-use processor subsystem, and eases the transition to 32-bit processing for designers accustomed to similarly configured 8051 IP cores.
            The 8051 is still a good choice for many chips, but our experience with customers incorporating data-intensive functions like touch-based interfaces and high-res video makes it clear they really need a good 32-bit embedded processor,” said Bill Finch, CAST’s senior vice president for sales. “The silicon-proven BA22’s performance, tiny code footprint, and mature development tools make it a great choice for many new systems, while our 15 years of microprocessor IP experience and very attractive business model make CAST a great 32-bit processor provider.”
            “CAST has a long track record as a smart, effective, customer-focused IP team that makes them a perfect match for our products,” said Matjaz Breskvar, chief executive officer of Beyond Semiconductor. “Working with them will enable us to bring highly customizable Beyond BA22 to new designers across the world while providing ease of use and excellent customer support.”
            Limited availability of the BA22 from CAST begins now, with a full product roll out in the next quarter. IP integration services are also available.
            Learn more by visiting http://www.cast-inc.com/beyond or emailing beyond@cast-inc.com. Participants in the 48th DAC in San Diego, June 5–8, are welcome to stop by CAST’s booth (2217) to see a demo and discuss the advantages of the BA22.
            About Beyond Semiconductor
            Beyond Semiconductor is a privately held fabless semiconductor IP company. Its comprehensive product offering features 32-bit embedded RISC/DSP processors with the highest code density in the industry. For more information, visit http://www.beyondsemi.com.
            About CAST, Inc.
            CAST, Inc. is a privately held company that provides semiconductor IP products and services. The company features advanced image/video processing and microcontroller IP families, plus the memory controllers, high-speed buses, peripherals, and other functions needed to build complete systems. Learn more at http://www.cast-inc.com/.

            Background information:

            CAST IP for ASICs and FPGAs: Introduction and Overview [CAST presentation on SlideShare, July 2002], only images for certain slides are included below

            imageimage

            image

            imageimage

            imageimage

            BA22-AP: BA22 32-bit Application Processor [CAST datasheet, June 20, 2012]
            Implements a 32-bit RISC processor for demanding embedded applications that use offchip instruction and data memories and that may need to run a real-time operating system (RTOS) or a full operating system such as Linux or Android. Part of the royalty-free BA22 family, this processor core is extremely competitive in terms of high performance and low power consumption, and has best-in-class code density.
            The core has Instruction and Data Memory Management Units (MMUs) and Caches, dedicated buses for on-chip instructions and data memories, and an AMBA® AHB™ or Wishbone system bus interface. Optional floating point, divider and multiply–accumulate units benefit DSP applications. The core includes up to 32 general purpose registers (GPRs), a tick-timer (TTimer), a programmable interrupt controller (PIC), an advanced power management unit (PMU), and an optional debug unit (DBGU). Additional microcontroller peripherals may be ordered for pre-integration and delivery with the core, individually or in a complete platform. IP Integration Services are also available to help integrate any BA22 processor configuration with memory controllers, image compression, or other CAST IP cores.
            The processor’s BA2 instruction set is relatively simple and extremely compact. Programing is facilitated with the included C/C++ tool chain; Eclipse IDE; architectural simulator; and ported C libraries, RTOSs, and OSs.
            The BA22-AP synthesizes to 35k gates in a 90nm technology, can be clocked with more than 450MHz in a 65nm technology and provides as many as 1.59 DMIPS/MHz. The core is delivered, with a complete software development environment under Eclipse IDE, and its users get access to already ported real operating systems (Linux, Android, eCOS and uClinux) and libraries.
            The BA22 family of processors has been designed for easy reuse and integration, has been rigorously verified, and is production proven. Contact CAST Sales for details.
            Applications
            Internet, networking and telecom
            Portable and wireless
            Home entertainment consumer electronics
            Automotive

            Deliverables
            The core is available for ASICs in synthesizable HDL, and includes everything required for successful implementation:
            • Verilog RTL source code
            • Verilog Testbench
            • Silicon-proven Reference SoC/ASIC Design
            • Software development tools for Cygwin on Windows and Linux, with Eclipse IDE interface
            • Operating systems and board support package
            A reference design board running Linux and FPGA versions of the core are also available; contact CAST Sales for information.

            Marko Ahtisaari from Nokia and Steven Guggenheimer from Microsoft on the Internet of Things day of LeWeb Paris’12

            Marko Ahtisaari: From the HERE location cloud, through design (principles) and new Lumia 620 announced, to the Internet of (Small) Things, or Nokia’s vision for IoT [leweb YouTube channel, Dec 5, 2012]

            – [02:20] Now the Internet is everywhere around us on the multitude of devices.
            – [02:40] We move forward … to an Internet of ten, twenty, thirty, forty smaller things that are on, in around us that are all connected to the Internet
            – [03:48] So what kind of world we do want to have as we go forward is something where the technology allows us to reach each other remotely but doesn’t get in the way of human interaction and in that connection with the environment that we have every day. So that’s the first, I think, important shift when you’re talking about the Internet of Things. But the other, equallly important , is a return to the significance of place.
            – [04:50] Now as we look at these devices that are increasingly packed with sensors, we know that they are aware and they know where they are. And all of these ten, twenty, imagethirty, forty things that we will have, on us, with us, will be located in a place. And to take advantage of that, to use location, if you like, as a lens for our activities and the experience we make, you need a digital model of the real world. And that’s what we’re building with what we have just recently recently announced as the HERE location cloud. [05:27]
            [see:
            Nokia redefines digital map landscape by introducing HERE as new brand for its location and mapping service [Nokia press release, Nov 13, 2012]
            – HERE. City and Country Maps – Driving Directions – Satellite Views – Routes.
            – HERE.
            Developer Site.]
            – [05:34] A real-time digital abstraction of the world, we call it HERE.
            <from this on you should better watch the video about HERE>
            – [10:08] <talk about design, you should watch as well> [10:55] The role of the architect and designer is to give a gentler structured life. The way I interpret that is that you focus on those things the people do fifty to hundred times a day, and you make them better. [11:10] <talk about design principles, continued now for Nokia smartphones> [14:06]
            – [14:08] <talk about the new Lumia 620 announced on the scene> [19:45]
            – When do you think the Internet of Things will be a reality?
            [21:00] What you’re seeing now is the startups here are in the forefront. I think the key thing is to establish things that do one or two or three things, and do them extremely well. And for that we have these products here today. [21:28

            Marko Ahtisaari, Executive Vice President, Design, Nokia… and introducing the brand new entry-level Lumia 620 as the manifestation of that Internet of SMALL Things as compact

            Detailed information about the three subjects of his talk (or closely related), on my blog:

            Nokia HERE Maps for everything, for FireFox OS in a strategic partnership with Mozilla [Nov 13, 2012]
            The Where Platform from Nokia: a company move to taking data as a raw material to build products [April 7, 2012]
            Nokia’s Lumia strategy is capitalizing on platform enhancement opportunities with location-based services, better photographic experience etc. [Jan 12 – April 27, 2012]
            I WILL ADD TO THAT NOW:
            Nokia HERE by Michael Halbherr [JB Su YouTube channel, Nov 15, 2012]

            Nokia Design direction [Aug 1 – Oct 31, 2012]
            Best practice industrial and user experience design – Nokia and Microsoft [Dec 17, 2011 – Jan 31, 2012]
            Designing smarter phones–Marko Ahtisaari (Nokia) and Albert Shum (Microsoft) [Nov 23, 2011]
            Nokia N9 UX [?Swipe?] on MeeGo 1.2 Harmattan [June 24, 2011 – Aug 10, 2012]
            Nokia to enter design pattern competition for 2011 smartphones with MeeGo [Dec 9, 2010 – Jan 31, 2012]
            – my detailed companion post on Lumia 620 giving also comparison with other WP8 Lumias: High-volume Nokia Lumia superphones with Windows Phone 8 extended on the top for China, and on the entry level needed for Asia and Middle-East as well [Dec 5, 2012]
            Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6 – Nov 13, 2012]
            Less focus on feature phones while extending the smartphones effort: further readjustments at Nokia [June 25 – Aug 9, 2012]
            Nokia Lumia (Windows Phone 7) value proposition [Oct 26-28, 2011]

            + Nokia under transition (as reported by the company) [March 11 – 30, 2012]

            + Regarding the new products below the Windows Phone 8 based Lumias (Lumia 620 … Lumia 920) see:
            With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets–UPDATED [Dec 19, 2012] new entry prices and Lumia 505 (? $220 ?) with AMOLED ClearBlack and Gorilla Glass [Nov 1 – Dec 19, 2012]

            france3 TV station put three questions to Ahtisaari after his keynote which shed more light on what is the connection of those things he was talking about to the subject of the Internet of Things:

            Three questions to Marko Ahtisaari, Executive Vice President of NOKIA, and responsible for the Design 1. How the connected objects changed your life? 2. What is the connected object which you dream? 3. What will be your news in the next 12 months? Trois questions à Marko Ahtisaari, vice-président exécutif de NOKIA, et Responsable du Design 1. Comment les objets connectés ont-ils changé votre quotidien? 2. Quel est l’objet connecté dont vous revez? 3. Quelle va etre votre actualité dans les 12 prochains mois?

            Strangely (or not, if taken otherwise) I could not find any written reports on the web about the HERE, the talk on design, only for the Lumia 620 announcement by Ahtisaari:

            From The Australian report:

            “It is a performance device in a compact package,” he said.

            … the device does support Near Field Communication, which makes it possible for users to transmit data merely by tapping their phones or waving them near terminals equipped with the technology.

            According to Mr Ahtisaari, when the phone goes on sale in January it will retail for $US249 ($238) before tax or subsidy. It will launch into the Asia Pacific region, the Middle East and Africa, before coming to Europe later.

            “When we designed the Lumia family, we knew there was an opportunity for a more compact product,” he said. “But it still has the solid products like the camera and the signature apps we have developed like Maps, Drive, City Lens.

            “We wanted something that was a bit more playful in a market that is essentially grey or black or white rectangles. We are introducing choice.”
            The phone sits nicely in the hand and the high-colour gloss finishes have a richness which Mr Ahtisaari said was achieved by overlaying a translucent layer on top of an opaque layer.

            From CNET report:

            Marko Ahtisaari, Nokia’s executive vice president of design, put the new colors front and center as he unveiled the phone at the LeWeb conference here.

            The phone comes in base colors, but using Nokia’s “dual shot” approach, transparent but colored covers that form new color combinations.

            “With the 620, we wanted to introduce some bold blends,” Ahtisaari said. “We use a technique called dual-shot application of color, with an opaque layer underneath then a translucent layer above.” A yellow base becomes lime green with a cyan cover and orange with a red cover, for example.


            Steven Guggenheimer: pretty clear Microsoft vision coming out of his discussion at LeWeb as:

            – Huge ecosystem is the major attraction for partners
            – Consistent UI across devices with choice in price, form factors and personalisation

            CHOICE is indeed a unique proposition of Windows 8 for end-users, as it was well demonstrated (here just in form factors) by Microsoft on another event, the Gadget Show Live Christmas in UK (Dec 1, 2012). And keep in mind that this is just the beginning.

            – Continuity in innovation while running an app on all those seemlessly
            – Relieve HW manufacturers of the pretty painful extra SW work and bring more vendors to operators than just Apple and Samsung (even if Samsung will jump on the Windows bandwagon in full, in addition to Android) to select from, in particular Nokia as a big player
            – CIOs getting cool devices that fit into enterprise IT in terms of security etc., while might be offered as real alternatives to iOS/iPad and Android devices to the end-users in terms of consumerization of IT
            – Developers reusing their skills in the world of Windows embedded for IoT as well
            – While Steven Sinofsky is a phenomenal visionary and shipper, one who ships products, but there is a great bench of executives, Julie Larsen Green, John DeVaan …, so the team is still there to continue on
            – Enabling the digital world globally by serving the fastest growing markets of the developing world as well

            Steven Guggenheimer, Corporate Vice President, Developer & Platform Evangelism Group, Microsoft & David Kirkpatrick, Founder & CEO, Techonomy Media. Questions from Kirkpatrick were: 1. [02:57] Why should we care about Microsoft and Windows? 2. [05:26] What is the case that you can really have a better phone, a better tablet than what Apple is making , and what Google is making and licensing? 3. [07:12] What is the most amazing stuff we are going to see as consumers, as employees on these phones and tablets, that we can’t do on the other products? What is the differentiated selling proposition? 4. [09:19] What is the next phase beyond the little rectangle of glass we carry on in or pocket? 5. [11:36] The trade-off required from the HW vendors for this, does it frustrate them, or you feel they can be completely fine with it? … with some going with Android … Samsung we have seen making big-big play on Android. 6. [13:04] How big of a potential partner is Samsung for you? … [13:45] Presumably there is a huge opportunity for you guys … to get a swing in effect. 7. [14:50] Operators might want a third choice [vs. Apple and Samsung only] but if Windows 8 starts to really take-off … Samsung will just go right there and that does not really help the operators in that respect. [Your opinion?] … [15:35] Operators in a way are key ally for you. 8. [15:55] CIOs are clearly another huge ally of yours. … Tell us a few of the reasons why. 9. [17:30] How is IoT fit into Windows 8 pitch? 10. [19:40] What does it [Sinofsky being forced out] do to the shape of Microsoft? What was your reaction to Sinofsky leaving? How big the deal is it for the company? 11. [20:58] How do you think about global and the developing worlds’ importance in terms of what you are doing?

            Detailed information about the subjects of this discussion (or essentially related, as that of Intel), on my blog:
            Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2% [Nov 20, 2012]
            Giving up the total OEM reliance strategy: the Microsoft Surface tablet [June 19 – July 30, 2012]
            The future of Windows Embedded: from standalone devices to intelligent systems [March 9-29, 2012]
            Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [Nov 13, 2012]
            Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12, 2012]
            Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
            Microsoft Surface: First media reflections after the New-York press launch [Oct 26, 2012]
            ASUS: We are the real transformers, not Microsoft [Oct 17, 2012]
            Urgent search for an Intel savior [Nov 21, 2012]
            Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices” [Nov 15, 2012]
            Can VIA Technologies save the mobile computing future of the x86 (x64) legacy platform? [Nov 23, 2012]
            AMD 2012-13: a new Windows 8 strategy expanded with ultra low-power APUs for the tablets and fanless clients [Feb 3, 2012]
            BUILD 2012: Notes on Day 1 and 2 Keynotes [Oct 31, 2012]
            Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [Oct 28, 2012]
            NOOK Media LLC: the finalization of the strategic joint venture between Barnes & Noble and Microsoft [Oct 6, 2012]
            The cloud experience vision of .NET by Microsoft 12 years ago and its delivery now with Windows Azure, Windows 8/RT, Windows Phone, iOS and Android among others [Sept 16-20, 2012]

            I searched the web for reports on that discussion and attributed that to the questions shown above. It’s quite typical that there were only two reports, the TechCrunch one just simply copied in quite a number of others. As you could see these two reports are also just focusing on certain questions and also reporting on them in a kind of distorted/biased way. So I will recommend read once again my concise summary of the microsoft vision as truly represented by Guggenheimer and watch the video record as well (if you have not done so yet).

            Here is what I’ve found:

            1. [02:57] Why should we care about Microsoft and Windows? 
            TechCrunch’s summary of the answers:

            Starting off the discussion, Kirkpatrick noted how Microsoft is still unsurpassed in the enterprise and how its successes like Xbox and Kinect reflect on the company’s strengths. At the same time, though, many people remain very skeptical about the company’s future – especially in the startup and developer community. Asked about why we should care about Microsoft and Windows 8, Guggenheimer noted that the company’s scale, including the millions of PCs that are expected to sell next year, make it an interested target for developers. He also stressed how the Windows store charges developers less than most other stores (especially for developers with sales over $25,000) and offers them access to a broader hardware ecosystem and access to significantly more eyeballs than other platforms.

            memburn’s summary of the answers:

            In one word: “opportunity.” Guggenheimer confirmed that some 1500 devices have been certified for Windows 8 already… and it only launched in October. The potential for growth is massive. Users can upgrade from older versions of Windows or buy a new device: and Windows 8 runs on tablets, laptops, desktop computers and smartphones. Whether the adoption curve will really spike as high as Microsoft hopes it will remains to be seen, but this is a key point for major app developers: they won’t build for a platform that no one is using, or for one where they can’t guarantee the best possible experience for their users.

            Guggenheimer says that if developers want hundreds of millions of devices to have the potential to access their apps, Windows 8 is the way to go. He also stressed the flexibility of the company’s system. For example, developers can use Microsoft’s engine to accept payments from users, or they can use their own.

            2. [05:26] What is the case that you can really have a better phone, a better tablet than what Apple is making , and what Google is making and licensing?
            3. [07:12] What is the most amazing stuff we are going to see as consumers, as employees on these phones and tablets, that we can’t do on the other products? What is the differentiated selling proposition?
            TechCrunch’s summary of the answers:

            Kirkpatrick pushed Guggenheimer to explain why Microsoft’s products are better and why developers – and consumers – should care. Guggenheimer took the standard Microsoft line here and argued that the company’s new products like Windows 8 and Windows Phone 8 offer a more personalized experience (he was clearly referring to the live tiles here) and a broader choice of form factors and price points than its competitors. It’s clear that for Guggenheimer, who previously focused on hardware, after all, the wide variety of hardware devices in the Windows ecosystem is a major selling point. This holiday, he said, will be interesting, but we will see thousands of devices in all kinds of sizes and designs by next year.

            memburn’s summary of the answers:

            “For the individual, it’s the personalised setup,” said Guggenheimer. There is a “constantly updating customised screen”, a number of devices at a range of price points and the choice of more and more phones, tablets, laptops and desktop computers. “Give hardware manufacturers a year with Windows 8, and you’ll see hundreds of thousands of devices,” said Guggenheimer.

            While the devices come in every shape, size and colour, he said they have one thing in common: a consistent user experience. “As developers, when you build an app, it runs on all of those [devices],” said Guggenheimer.

            5. [11:36] The trade-off required from the HW vendors for this, does it frustrate them, or you feel they can be completely fine with it? … with some going with Android … Samsung we have seen making big-big play on Android.
            memburn’s summary of the answers:

            He sees it as a middle ground between Android and Apple’s strategies:

            1. Apple’s model: Build all the hardware so all the software will run on the machines, but only offer consumers a limited choice of devices
            2. Android’s model: While manufacturers can build any hardware they like, the software experience is not consistent over all devices. It’s lead to the dreaded f-word that is a major drawback for Android users: fragmentation.
            3. Microsoft’s model: Partner with manufacturers and provide enough definitions for the hardware so that there are set standards, so all the applications will run on every device, but still offer the customers a wide product range.

            10. [19:40] What does it [Sinofsky being forced out] do to the shape of Microsoft? What was your reaction to Sinofsky leaving? How big the deal is it for the company?
            TechCrunch’s summary of the answers:

            Kirkpatrick, of course, also used this opportunity to ask about Steven Sinofsky’s unexpected exit from Microsoft just days after the launch of Windows 8. According to Guggenheimer, Sinofsky is a “phenomenal visionary” and “phenomenal shipper.” While Kirkpatrick insinuated that Sinofsky was pushed out, Guggenheimer obviously wouldn’t say so and just reiterated Microsoft’s company line that he “decided to leave.” “We’ll miss Steven,” he said, but he also argued that Microsoft has a very deep bench of executive talent.

            memburn’s summary of the answers:

            The quick departure of the former President of the Windows Division just days after the launch of the OS he helped design has sparked lots of rumours about whether he left voluntarily or was pushed out. Guggenheimer didn’t elaborate on exactly what happened, but he admits that while they’ll “miss him” and “he did great things” at Microsoft, “we have a great bench — the team under Steven is still there.”

            11. [20:58] How do you think about global and the developing worlds’ importance in terms of what you are doing?
            memburn’s summary of the answers:

            With the range of low and high-end devices and partnerships with major international manufacturers, Guggenheimer seems to think the answer to that question is ‘yes’. He said that they’re focusing on the shift: the market in countries like China has outstripped places like the US, and Microsoft is aiming to enable the digital world globally. He said that international expansion is not an obstacle for developers, stating simply that “if you develop for Windows, it’s going to work in 200 countries.”

            And finally see what was shown by Microsoft at LeWeb 2012 [Charbax, Dec 8, 2012]

            Microsoft is showing off Surface RT, Windows Phone 8, Windows 8, a bunch of devices running these.

            $99 Android 4.0.3 7” IPS tablet with an Allwinner SoC capable of 2160p Quad HD and built-in HDMI–another inflection point, from China again

            [This is a huge, compiled collection basically finished in September, 2012. Contains updates till November, 2012. It was published in early December, 2012. A new USD 99 Allwinner blog was launched on Nov 30, 2012 based on this compilation. Please read the two entry posts of that as well: The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs and $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India in order to understand very quickly that  It’s a Strategic Inflection Point of enourmous consequences, and not only for the ICT industry.]
            Or it is first time that we can see globally that China is on a different, significantly more effective price/performance/functionality trajectory of its own than anybody else. Even the latest challengers to the already fading Wintel empire will be affected by this. We should therefore understand: 1. The new challenge—2. The learnings from similar fundamental shifts in the history of ICT—3. The current market for this new industry trajectory—4. The initial advantage that made possible this trajectory—5. The most significant new customer value which will assure its global victory in the end—6. The current way of thinking of the established client device players.—7. Possible further hardware advances sustaining this new trajectory.
            Inside PRC the situation is even more dramatic. Below you could see 3 market leading products on the mainland China market as was indicated on Sept 25 by vast and quite sophisticated marketplace information of PConline, the largest portal in the PRC specialising in IT product-related content, in terms of advertising revenue. The type of SoC used in those products is shown in blue ink. A13 and A10 are from Allwinner Technology, while RK3066 is from Fuzhou Rockchip Electronics. Both are quite successful SoC companies founded in China. Information about these tablets will be given in section 3. The Teclast & Window tablets shown below are also available globally for $120 and $215 respectively.

            image

            Update: All three tablets essentially have kept their position up to now (Dec 3). The price of Teclast P75D even went down to ¥499 i.e. $80 at one of the dealers, three of the dealers have price between ¥594 and ¥599, i.e. between $95 and $96, while 5 others still selling it for ¥699 i.e. $112 by today’s exchange rate. This is showing clearly that the $99 pricing for the HAIPAD i7 is realistic even in terms of the hottest tablet of such kind on the mainland China market which has ¥646 i.e. $104 across all of its dealers on PConline.
            At the same time the unchanged ¥259 i.e. $41.5 price of Andorra A713 clearly shows the fact that for a non-IPS 7” tablet with the Allwinner A13 SoC, essentially a constrained to 512M RAM version of A10 with no HDMI output, there is a well established entry-level price in China. Note that the A713 tablet has a capacitive multi-touch (5-point touch) screen, so it is not a kind of cheap resistive screen variety of tablets.
            This whole story will end in section 7. with the even more dramatic development of a PCMCIA card (or as was renamed PC Card) format package called EOMA-68 (see: Embedded Open Modular Architecture), which contains a whole computer with an Allwinner A10 SoC, 1GB of RAM, 1 to 16 GB of NAND Flash etc. All this for a target price of $15. Almost all interfaces available of the Allwinner A10 SoC have been made available on the 55x85mm credit-card-sized card, including both Transport Streams, SIM Card, PATA, the 24-pin Camera Interface, both 24-pin LCD Interfaces, VGA, Composite Video (CVBS), SPDIF, AC97, I2S, GPS, CAN-Bus, Infrared, and many more. This is in addition to the standard EOMA-68 Interfaces of Ethernet, I2C, SATA, LCD 24-pin RGB/TTL, USB2 and 16 GPIO pins.
            While this is a FLOSS-related initiative rooted in UK, the hardware part is fully based on mainland China companies, including Allwinner Technology. What is the benefit for the FLOSS-people could be much more for the Chinese industry network already moving along a much faster and more effective trajectory than the outside world. To me it can go as far as a SoC vendor like Allwinner Technology will be able to produce these type of cards as well which will significantly enhance the possibilities and worldwide competitiveness of the hundreds of independent manufacturers is Shenzhen, Zhuhai and elsewhere in PRC. As a consequence the consumer equipment prices could go down even more and/or functionaly, as well as quality, could be risen even more.
            Meanwhile the SoC and subsequent Android tablet competition is intensifying very-very fast inside PRC as evidenced by this latest Overview of the latest/best 7″ Tablets out of Shenzhen China [Charbax YouTube channel, Oct 28, 2012]:
            Here’s my overview video showing some of the latest best value 7″ Android tablets that I have found in Shenzhen on this trip. At least the samples that I was able to buy. [IN BULK PRICES, i.e. in 1K orders at least:] $40 A13 800×480, $65 RK3066 1024×600, $80 Nufront NS115 1024×600 IPS, and there’s also the sub-$50 VIA 8850 (which can run a Windows RT clone UI on top of Android), and I compare these with the $199 Kindle Fire HD
            Finally there is an even stronger newcomer, Nufront already on the Chinese SoC market, also posing the greatest challenge to Allwinner for the next year as it stands on Nov 1. We are talking about the Taishan platform with:
            The NS115 mobile computing chip, a dual-core ARM Cortex™-A9 MPCore™ processor up to 1.5GHz and Mali™-400 MP GPU implementation, features 1080P HD encode/decode and support of Android 4.0
            which justifies a whole section of its own to describe the whole strength of:
            8. The Nufront challenge coming from inside

            All those finding are compiled into this very large composite post on my trend-tracking blog here, which has the following sections with final names reflecting better the individual section contents as:

              1. The new challenge
              2. A proper recollection of what happened to Intel’s memory business
              3. The market and industry situation reflecting this new inflection point
              4. The Allwinner advantage 全志
              5. The wireless display and 2160p (“Quad HD”/4K) outlook
              6. Are the established client device players recognizing this strategic inflection point or not?
              7. Possible further hardware advances sustaining this new trajectory
              8. The Nufront challenge coming from inside

                Please go through those compiled sections at least by reading the emphasized texts which I’ve put everywhere to make fast reading possible.

                Note as well that section 2. is also on a new blog of mine, USD 99 Allwinner, as an expanded version standing on its own and made accessible from every post there via It’s a Strategic Inflection Point page.

                Finally, on this new blog you will find the USD 99 Allwinner page as well which, besides providing the rationale for the naming and the existence of that blog, will summarize my current (Dec. 1) opinion about the mobile device market for 2013, especially the threat which may force Microsoft and Intel to adjust their current strategies radically.


                1. The new challenge

                HAIPAD I7 IPS 1024*600 Multitouch Screen with Android 4.0 Dual Camera 1080P HDMI [Merimobiles.com, Sept 10, 2012]

                List Price: $269.99   Your Price: $99.99  [with free shipping worldwide]
                [when it became available in April’12 it was briefly $137.99 already]
                [more tablets of this kind coming to the market too, e.g. the $99 Dragon]

                Haipad i7 Android ICS 7” capacitive IPS Thin Tablet Review – Allwinner A10 Merimobiles ColonelZap [SchlumpfiHB YouTube channel, April 15, 2012]
                The only cons are that the cameras are “really, really bad”

                TECH SPECS:

                Warranty:
                – 1 Year, click here for details
                CPU:
                Allwinner A10 1.2 GHz
                OS:
                – Android 4.0.3
                Memory:
                1GB DDR3 Ram, 8GB Nandflash built in
                – Extend Memory up to 32GB via micro sd card
                Screen:
                – 7 inch IPS 5 points Capacitive Multitouch
                – 1024*600
                Audio:
                – Stereo Speaker
                – 3.5MM headphone jack
                – Supports: AAC, AAC+, eAAC+, AMR-NB, AMR-WB, QCP, MP3, WMA, WAV, MIDI, M4A
                Video:
                1080P,WMV/ASF/MP4/
                3GP/3G2M4V/AVI/MJPEG/RV10/DivX/
                VC-1/MPEG-2/
                MPEG-4/H.263/H.264
                – 1280*720P HD 30 fps, 1080P,720*480 D1 30fps
                – Real-time Video decode
                Camera:
                Front 0.3MP camera,
                back 2.0MP
                Battery:
                – 3600mAh
                Features and highlights: – Allwinner A10
                – 8GB Nandflash
                – 3D G- Sensor
                – 802.11b/g,support WAPI
                – Capacitive touching panel multi-point( 5 point touch)
                – OTG and host expand
                – USB2.0 data transfer
                – Micro 5pin USB
                – Supports mouse, external keyboard
                HDMI output
                – Multilanguage support
                – Excellent Ebook reader
                – Weather on line
                – Web Browser
                – Slim body
                – Sound Card:AC97
                – 196.3*122.3*8.5mm
                – standby time:36 hours
                – working time:4~5hours (play video online)
                Package Content:
                  • HAIPAD I7
                  • Earphone
                  • USB Cable
                  • Charger
                  Color:
                    • Gray
                    Language:
                    • English
                    Regarding the multimedia capabilities I will suggest to go through a review of a similar tablet: MPMan MID74c (NATPC Primatab 7″) tablet review part 3: multimedia and HD video playing capabilities (Boxchip Allwinner A10) [ARCHTABLET NEWS, May 25, 2012]. Two videos are included there as well!

                    As you can see this process was well visible much earlier, in the beginning of Q2 2012 at the latest. Besides the September milestone of reaching the $99 cost with such a high-quality IPS tablet, another impetus for me to write this post was a last Sunday’s article titled Hardware is dead [VentureBeat, September 15, 2012]:

                    I go to China every four or five months for work. I have to visit all the corporate headquarters in Beijing and Shanghai, but the highlight of every trip is the day I spend at Hua Qiang Road North in Shenzhen. Pretty much every piece of electronics we use today is sourced and manufactured within 100 miles of Shenzhen, and Hua Qiang is the city’s electronics shopping district.
                    On my last trip, in July, I met a ‘procurement’ consultant, and he told me which of the 50 mega malls in the area to visit to buy tablets.
                    In the US, when we talk about tablets we usually mean the iPad and increasingly the Kindle devices, but beyond that there is not much else in the market. I had heard that tablets in China had already reached low price points. You can buy a reasonable Android phone for $100 retail, and I wanted to see if I could find a $150 tablet. This consultant pointed me to a mall filled with hundreds of stalls selling nothing but tablets. I walked into the middle of the scrum to a random stall. I pointed to one of the devices on display and asked, “How much for this one?” 300 kuai. My Mandarin is a bit rusty, so I had to ask again. Slowly, the stall owner repeated renminbi 300 yuan.
                    If this were a movie, the lights would have dimmed and all the activity in the room frozen. 300 renminbi is US $ 45. And that was the initial offer price given to a bewildered foreigner in China, no haggling. I felt a literal shock.
                    I bought the device and did some more research. This was a 7-inch tablet, Wi-Fi only with all the attributes of a good tablet. Capacitive touchscreen. Snappy processor. Front facing camera. 4GB of internal memory and an expandable memory slot.
                    I later found out that these devices are now all over the supply chain in Shenzhen. At volume, say 20,000 units, you can get them for $35 apiece. My device ran full Android 4.0 Ice Cream Sandwich and had access to the full Google API, including Gmail, Maps, YouTube and Google Play (not quite sure how that works either).
                    Once my heart started beating again, the first thing I thought was, “I thought the screen alone would cost more than $45.” My next thought was, “This is really bad news for anyone who makes computing hardware.”
                    My contacts in the supply chain tell me they expect these devices to ship 20 million to 40 million units this year. Most of these designs are powered by a processor from a company that is not known outside China — All Winner [Allwinner]. As a result, we have heard the tablets referred to as “A-Pads.”
                    When I show this tablet to people in the industry, they have universally shared my shock. And then they always ask “Who made it?.” My stock answer is “Who cares?” But the truth of it is that I do not know. There was no brand on the box or on the device. I have combed some of the internal documentation and cannot find an answer. This is how far the Shenzhen electronics complex has evolved. The hardware maker literally does not matter. Contract manufacturers can download a reference design from the chip maker and build to suit customer orders. If I had 20,000 friends and an easy way to import these into the US, I would put my own name on it and hand them out as a business cards or Chanukah gifts.
                    I think this leads to an important conclusion: No one can make money selling hardware anymore. The only way to make money with hardware is to sell something else and get consumers to pay for the whole device and experience.
                    Postscript
                    I thought discovering the A-Pad was pretty exciting. So I was dismayed to find that the week after I got back from China, a device that looks a lot like my A-Pad was on sale at Fry’s Electronics for $79. No brand listed. The process has already begun.
                    Jay Goldberg is a financial analyst with an investment bank. He has been working with tech companies for ten years. Prior to that he lived and worked in China for almost 10 years.

                    A morale of this story is not the one written in the title of the article, i.e. it is not true at all that “hardware is dead”, rather we are witnessing again an old phenomenon first discovered by Intel’s Andy Grove back in the 80’s and coined with a term “[strategic inflection point]”. With no proper representations in places like Wikipedia (don’t confuse with mathemetical concept only included there) you better search the web with the phrase:

                    “Andy Grove” “inflection point” Japanese “memory chips”

                    For me the best quote for my initial purposes here is from the permitted excerpt of Andy Grove’s famous Only the Paranoid Survive [Sept 1, 1996] book, reformatted for more immediate recognition of the intended meanings as follows:

                    I’ll describe what a strategic inflection point is a bit later in this book. For now, let me just say that a strategic inflection point is a time in the life of a business when its fundamentals are about to change.  That change can mean an opportunity to rise to new heights.  But it may just as likely signal the beginning of the end.
                    You can be the subject of a strategic inflection point but you can also be the cause of one. Intel, where I work, has been both
                      • In the mid-eighties, the Japanese memory producers brought upon us an inflection point so overwhelming that it forced us out of memory chips and into the relatively new field of microprocessors.
                      • The microprocessor business that we have dedicated ourselves to has since gone on to cause the mother of all inflection points for other companies, bringing very difficult times to the classical mainframe computer industry
                        Having both been affected by strategic inflection points and having caused them, I can safely say that the former is tougher.

                        Next I should give a brief explanation for “changing fundamentals of a business”. As is obvious from the recollection given below (section 2.) there were certain assumptions on which Intel’s original DRAM business was based upon. These assumptions were questioned by its Japanese competitors entering the lucrative DRAM market, first time winning against Intel in 1979 with better manufacturing yields and then by 1982 in terms of overall manufacturing competence as well. Equally important was that Intel was not able to remedy the situation although the symptoms were well recognized and seemingly effective actions were taken as well.

                        Please study that recollection first and then the sections which follow after that and which describe the observable facts about this very latest strategic inflection point. You will be able to both understand the current situation properly (unlike the investment analyst quoted above) as well as to predict the possible outcome of this inflection point for the ICT industry as whole (with the highest probability possible at all). I wish you good reading!

                        From the brief understanding of the new challenge as given above I should also paraphrase my remaining points of study as:

                        2. A proper recollection of what happenned to Intel’s memory business
                        3. The market and industry situation reflecting this new inflection point
                        4. The Allwinner advantage
                        5. The wireless display and 2160p (“Quad HD”/4K) outlook
                        6. Are the established client device players recognizing this strategic inflection point or not?
                        7. Possible further hardware advances sustaining this new trajectory


                        2. A proper recollection
                        of what happened to Intel’s memory business

                        Exerpts about the factual evidence are taken from the following scientific article:
                        A PROCESS MODEL OF STRATEGIC BUSINESS EXIT: IMPLICATIONS FOR AN EVOLUTIONARY PERSPECTIVE ON STRATEGY [Robert A. Burgelman, Strategic Management Journal, Vol. 17, 193-214 (1996)] (available here for download)

                        Table 1. Key events in the evolution of DRAMs at Intel: 1970-85
                        1970
                        E1. Intel introduced the first 1K (kilobit) dynamic random access memory (DRAM) in volume. The product used the new metal-oxide semiconductor (MOS) process technology. This process technology was relatively slow but less power consuming than the standard bipolar process technology. Intel was the first successful mover in DRAMs.
                        1972-74
                        E2. Intel introduced 4K DRAMs. Intel captured more than 80% of the 4K DRAM market in 1974.
                        E3. The first competitive challenge came from Mostek, a new startup. Mostek focused on user-friendliness of DRAMs in the 4K DRAM generation.
                        1976-77
                        E4. Intel introduced a standard 16K DRAM. Intel captured more than 35% of the 16K DRAM market in 1976.
                        E5. The competitive challenge from Mostek and others continued. By 1979, Intel’s market share in standard 16K DRAM was less than 5%.
                        E6. High demand for EPROMs created a shortage in Intel’s manufacturing capacity. For the first time, DRAM manufacturing capacity was shifted toward the higher-margin EPROM products.
                        1979
                        E7. Intel introduced the first 5-volt ‘single-power-supply’ 16K DRAM. Single-power supply greatly simplified the user’s design and production tasks. In 1979, Intel was the only supplier of single-power-supply 16K DRAMs and captured a price premium of double the industry average for three-power-supply 16K DRAMs.
                        E8. Intel expected the 64K DRAM generation to be introduced later and to be based on single power supply. Fujitsu introduced a standard 64K DRAM in 1979 and captured a large market share.
                        E9. The single-power-supply 16K DRAM remained a small-niche product.
                        E10. Intel fell behind in manufacturing yields relative to top Japanese producers of DRAMs (Prestowitz, 1988: 46).
                        1982
                        E11. Intel’s 64K DRAM with ‘redundancy’ entered production. Redundancy involves adding an extra column of memory elements so that, in the event of a process-induced defect, the auxiliary column could be activated. This allows a defective memory chip (at testing) to be reprogrammed before shipment and to increase yields. Intel expected that ‘redundancy’ would help overcome its disadvantage in manufacturing yields relative to the Japanese, and that the 256K DRAM generation would be based on the redundancy process technology.
                        E12. However; Fujitsu and Hitachi entered with a standard 256K DRAM in 1982 and captured a large market share.
                        E13. Intel was now far behind in manufacturing competence relative to the Japanese.
                        March 1985
                        E30. COO Andy Grove felt strongly that the burgeoning logic (microprocessor) business needed to get more resources
                        Summer 1985
                        E34. The General Manager of the Components Group stepped down and was reassigned to another business area. Andy Grove assumed direct operational control over the DRAM exit process. He assigned two senior managers to immediately and fully implement the DRAM exit decision.
                        October 1985
                        E35. The decision was reached to close Fab 5 for DRAM production. Fab 5 was to be transformed into a process technology site for microprocessors. Animosity and mistrust between manufacturing and process technology personnel flared at Fab 5.
                        E36. Andy Grove went to Portland to speak to the group: ‘Welcome to the Mainstream Intel’. That is, Intel the ‘microcomputer company’.

                        Intel’s initial success in the 1K (kilobit) DRAM (1971-73) was due to the ability of its technologists to come up with a process technology that allowed production yields sufficiently high to beat magnetic core memory, which was the industry standard of the day, in the market (E1). Process technology was therefore viewed by Intel management as the firms’ ‘distinctive competence’ (Selznick, 1957) on which its ability to differentiate its products and get a premium price depended (E7, E11, E18, E22). Having maintained leadership in the 4K DRAM generation (1972-76) (E2, E3), Intel’s process technologists came up with the first 5-volt single-power-supply 16K DRAM in 1979. Intel process technologists decided to focus on the single-power-supply 16K DRAM because they projected a relatively long life cycle for the 16K generation due to the technological challenges posed by the 64K generation (E18). They also believed that the single-power-supply process would eventually dominate the memory industry. They considered it too risky to tackle both the 64K DRAM generation and the single power supply in the same product.
                        While it is usually difficult to observe distinctive competence independent of the successful product with which it is associated, and the risk of tautology is high, Intel’s pattern of strategic actions offers the opportunity to make independent observations. When changes in the DRAM industry structure shifted the basis of competition from process technology to largescale precision manufacturing, Intel continued to rely on process technology to compete in four successive product generations. The first independent observation concerned the 16K DRAM generation. But, as documented below, inertial deployment of process technology competence was also observed in the 64K, 256K, and 1 Meg (megabit) product generations. Paradoxically, the distinctive competence that provided Intel with its initial competitive advantage became a source of failure later on.
                        Falling behind reinforces the impetus process
                        Falling behind in the market made it difficult for the DRAM business managers to compete with Intel’s other businesses for resources. Business managers had tried to reposition Intel’s single power-supply 16K DRAM as a niche product that would fetch a higher unit price (‘2x’). They had expected that eventually the whole 16K market would have to go for single-power-supply. This did not happen for the 16K generation, however, and further impetus for exit was gained when the strategy to reposition Intel’s DRAMs as niche products failed (E9; Cogan and Burgelman, 1990).
                        Repositioning
                        Intel was already late in the 64K generation and Japanese companies had entered the DRAM market in 1979. In addition, Intel’s 64K product design was flawed and expected to result in uncompetitive low manufacturing yields (E10). The DRAM process technology group responded by introducing a new process technology called ‘redundancy’, as a way to overcome the low yield problem (E11). This new process, however, had a major defect which showed up late in its development. Intel introduced its 64K DRAM with redundancy only in 1982. These delays were fatal for Intel’s strategic position in the 64K generation. A former General Manager of the Memory Components Division (during the early 1980s) said that he took a 1-week trip to see the Intel sales engineers and explain that Intel would be late. He said (Cogan and Burgelman, 1990: 15):
                        The sales force was very disappointed in the company’s performance. Any sales force wants a commodity line. It’s an easy sell and sometimes it’s a big sell. That trip was perhaps the most difficult time in my whole career. When I announced we would be late with the product, the implication was that Intel would not be a factor in the 64K generation.
                        Having assessed that they were behind in the 64K generation, the DRAM process technology group took another gamble. They had come up with yet another innovative process technology—complementary metal-oxide semiconductor (CMOS)—which was to eventually supersede the standard n-channel MOS (NMOS) technology. They decided to apply the CMOS technology to a new 64K DRAM product as well as in the 256K generation (E16). This raised the difficult question for the memory components division about how to effect the transition from NMOS to CMOS. The NMOS products had been made at the Chandler (Arizona) facility, but that capacity had been shifted to microcontrollers based on the maxmize margin-per-wafer start rule. In early 1984, the decision was made to phase out the NMOS line (E17).
                        The former General Manager of the Memory Components Division (during the early 1980s) said that the new business strategy was to reposition Intel in DRAMs. The idea was to create a niche market with premium pricing for 64K and 256K CMOS products, so that Intel could maintain a memory presence while accelerating back into an overall leadership position at the 1 Meg (Megabit) generation. But for both the 64K and 256K DRAM products, the innovative solution did not produce competitive advantage. The large majority of customers for the 64K generation were looking for standard products of high quality (few defect devices) at low prices. Japanese companies provided what customers wanted at very low prices. The Japanese had introduced standard 256K DRAMs in 1982 (E12), and Intel had fallen far behind the Japanese in manufacturing yields (E13). Intel entered with its CMOS 256K product only in 1984, and it remained a small niche product. The former General Manager of the Memory Components Division (during the early 1980s) said that standard DRAMs were being sold at less than half of the price Intel was asking, and the improved performance of the CMOS chips just wasn’t worth it to most customers. Intel’s repositioning effort resulted in completely losing strategic position in the DRAM market. Intel’ s market share shrunk from more than 80 percent in the 4K DRAM generation in 1974 to less than 1 percent in the 256K DRAM generation in 1984 (Cogan and Burgelman, 1990). Repositioning thus failed to reestablish Intel as a key player in the industry. Also, prices for the niche products were lower than expected, making it harder for DRAMs to compete with other products for Intel’s scarce manufacturing resources.
                        The Director of Technology Development observed that Intel’s DRAM business had entered a ‘death spiral’. In the face of strong competition from Japanese manufacturers, business managers’ focus on the more profitable products and technology development’ s preoccupation with leading-edge processes contributed to missing the
                        DRAM mainstream market. This led to cutbacks in manufacturing capacity and budgets which made it even more difficult to compete. This manager, in an interview in October 1988, anticipated a similar vicious circle (‘death spiral’) for EPROMs, which had also become a commodity product, and correctly foresaw the decision to exit from EPROM manufacturing, which happened in 1991.
                        Strategic context
                        For Intel’s top management, the strategic context of DRAMs had always been very clear. DRAMs had very strong legitimacy. DRAMs was the business that ‘made Intel’, as one senior manager put it, and some top managers, including the CEO, viewed DRAMs as a core business and one that served as technology driver on which the learning curve of the company depended. It was not easy for top management to admit that the legitimacy of DRAMs was vanishing. And it was difficult to decide to exit from DRAMs even though objective analysis seemed to suggest that this was the appropriate course of action in light of Intel’s strategic alternatives.

                        3. The market and industry situation
                        reflecting this new inflection point

                        Let’s see first the latest market data by one global analyst companies, IDC:image 
                        Source: IDC Expects Smart Connected Device Shipments to Grow by 14% Annually Through 2016, Led by Tablets and Smartphones [IDC press release, Sept 26, 2012]

                        According to the latest information from China the tablet market is quite underestimated by IDC:

                        How many tablets does China make, how big is the Chinese market?
                        80 percent of media tablets made in China are exported
                        Unit: Million of units
                        S
                        ource: Chinese industry estimates

                        as China alone will be delivering 50 million tablets this year and the overall Chinese estimate is 155 million units vs. 120 million per IDC:

                        By volume, the Android tablet sector has grown to an estimated 80 million units, outpacing the 75 million iPads sold by Apple thus far, according to estimates by Rockchip [marketing] vice president Feng Chen.

                        as reported by Junko Yoshida, ex-editor in chief of EE Times who now has a strong emphasis on China as “a roving reporter”: 

                        in China Fabless: Rockchip rattled by Android tablet wars [Sept 25, 2012]
                        Just nine months ago, Fuzhou Rockchip Electronics, a developer of apps processor for tablets, looked almost invincible. …
                        … since then, the Android-based media tablet market has gotten far more competitive. By volume, the Android tablet sector has grown to an estimated 80 million units, outpacing the 75 million iPads sold by Apple thus far, according to estimates by Rockchip [marketing] vice president Feng Chen.
                        At the beginning of 2012, the target price of a 7-inch capacitive screen media tablet featuring Cortex-A8 was $99. That price has since dropped to around $65, due largely to Allwinner, a red-hot Chinese fabless company that has flooded the tablet market with its own turnkey system. … Rockchip’s situation vividly illustrates the challenges most Chinese fabless chip companies now face.

                        During a recent interview with EE Times here, Rockchip’s Chen said, “This is a new world war we’re fighting.” … Indeed, nearly every apps processor [sic, SoC] vendor here is in a rough spot because “the time-to-market requirement has gotten much shorter,” he noted. “Worse, catching the market rhythm or cycle — at the right time – has become much harder.”

                        “… now, as end-product cycles get shorter, we do everything from designing a chip to developing a board and software that goes around the hardware — literally within a couple of months,” he explained. In March, for example, Rockchip started to design its RK3066, a dual-core Cortex A9 chip with a quad-core Mali-400 GPU. By April [15], it hustled to showcase sample tablets based on the chip at the Hong Kong Electronics Fair. By May, the company began shipping the new apps processor to its customers.

                        Note regarding the timing of RK3066 SoC development:
                        – The initial version of RK3066 datasheet brief is dated Oct 30, 2011. the 1.0 version of it February 15, 2012.
                        – The RK30xx platform was announced on Feb 27, 2012 with information that “Dual-core ARM Cortex-A9 processor with up to 1.4GHz speed, implemented with Artisan Processor Optimization Pack (POP)” and that “Samples of the Rockchip RK30xx platform will be available in March 2012.”

                        Unlike other startups here, Rockchip has been profitable from the start. But as the tablet battle heats up, it also needs to find a way to move to the next level. “We are fighting a world war. We need the world’s top talent.”
                        The company also needs access to capital. Without it, Rockchip can’t even think about mergers or acquisitions. Organic growth alone won’t get it to the next level, Chen acknowledge, saying he expects consolidation in the Chinese fabless sector but “no Chinese companies want to give up.” 
                        Lastly, Chen said, “We need to be clear on the market” so that Rockchip can choose its battles.

                        Another of her observation:

                        Yoshida in China: How Nokia failed, MediaTek won [Sept 26, 2012]

                        Earlier this month when I sat down for breakfast here with Feng Chen, vice president of China fabless company Rockchip, he abruptly asked if I knew the “80-3-2 rule.” I had never heard of it.
                        The subject came up as we were discussing the global media tablet market. Chen, who noted that this is his personal theory, not Rockchip’s, explained: If you design a system (or chip) with performance of at 80 percent compared to the best-in-class product on the market, and if you offer it at one-third the price, you can double the sales volume of your system (chip).
                        Chen used the media tablet market as an example. Many Android-based tablets with relatively less performance than Apple’s iPad, will eventually exceed sales of iPad in volume, he argued.
                        In other words, don’t over-engineer it.
                        Android, along with outsourcing and faster product turnarounds are the key elements that make the 80-3-2 rule possible. The rule also offers a mechanism for getting products in the hands of consumers.
                        Source: IHS iSuppli
                        Does the 80-3-2 rule make sense? Sort of.
                        The chart above illustrates the theory’s flaw: While Apple gets all the profits generated by the iPad, sales revenue for the Android camp is divvied up by many me-too Android tablet and chip suppliers.  Presumably those companies, all subscribing to the 80-3-2 rule, are fiercely undercutting one another, further reducing their margins.
                        So, the 80-3-2 rule is simplicity itself, but it doesn’t look sustainable to me.
                        Chen’s theory reminded me of something else. The Economist carried a story about “frugal innovation.” The article cited companies like General Electric and India’s Tata Consultancy Services (TCS) that developed new products like a hand-held electrocardiogram (by GE) and a water filter (TCS).
                        “Instead of adding ever more bells and whistles, they strip the products down to their bare essentials,” embarking on “frugal innovation,” or as it is sometimes called, “reverse innovation,” the Economist explained.
                        According to the Economist, “Frugal innovation is not just about redesigning products; it involves rethinking entire production processes and business models. Companies need to squeeze costs so they can reach more customers, and accept thin profit margins to gain volume….”
                        Therein are the dots we can use to connect to Chen’s theory. His 80-3-2 rule also addresses the issue of how a company finds a way to develop a product and a business process to squeeze costs, gain volume and reach millions of new customers.
                        (Full disclosure here. The Economist article was first pointed out to me by a U.K.-based engineering executive who works for Taiwan’s chip giant MediaTek. He was explaining how MediaTek’s recent success has a lot to do with “frugal innovation.” MediaTek, virtually unknown 10 years ago, is now a power house with huge market share in the Chinese smartphone  and media tablet markets.)
                        MediaTek has fundamentally changed the playbook for the chip industry here, especially for smartphones and tablets. More chip suppliers for smartphones and tablets who are competing with MediaTek are now expected to provide similar “turnkey systems” that MediaTek delivers, rather than just reference designs.
                        Technology development, especially in the electronics industry, has historically been one-dimensional. It all pretty much comes down to how your engineering team makes a system operate faster, run more apps and features, while consuming less power.
                        Frugal, or reverse, innovation and the 80-3-2 rule both suggest that it’s time to rethink innovation in more in multi-dimensional terms.
                        I can think of two good examples for how ignoring reverse innovation costs companies. … Nokia … Japanese LCD TV manufacturers like Sharp …

                        Her latest report continues with Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]

                        NEW YORK – The global tablet market may be a lot bigger — perhaps as much as 50 percent bigger — than previously thought depending on how you measure the increasing numbers of “Shanzhai” tablets produced in China.
                        Loosely translated, “Shanzhai” means white box, as in, no label. These tablets manufactured in China are distinguished from “knockoff” products, which the original Chinese term “Shanzhai” suggests.
                        Earlier, I wrote about the global market for tablets during the third quarter of this year. According to estimates, shipments reached 27.8 million units.
                        Several industry sources based in Beijing and Shenzhen responded with notes  saying that the math behind the industry estimates didn’t add up. The Chinese observers argue that most estimates ignore the size of the white box tablet market. 

                        Factoring in the number of apps processors shipped by Chinese fabless companies and tablet displays from its panel vendors, the number of white box tablets made in Shenzhen during the third quarter could total as high as 18 million units, Chinese sources claimed. 

                        Add those to the branded tablets sold by Apple, Samsung, Amazon, Asus and Lenovo and the global tablet market in the third quarter jumps to 42.5 million units. That’s 52 percent more than the global total estimated by IDC in 3Q.
                        This huge gap makes me wonder what other Chinese consumer electronics products are uncounted or under-counted.

                        One thing to take into account is Chinese fabless chip company Allwinner Technology — how it operates and and how it has taken advantage of the growing white box market.

                        The  applications processor vendor has substantially expanded its market share over the last 18 months, primarily based on the strength of its turnkey system that has been described as “super easy to use” by Chinese industry sources. The solution allegedly makes it a snap for practically any white-box vendor to make media tablets and ramp up production in a Shenzhen minute.

                        According to sources in Shenzhen, Allwinner holds as much as 60 percent of the white box market and shipped 3.5 million apps processors in August alone. Allwinner is said to have shipped 5 million apps processors in October, generating $30 million revenue (at a $6 average selling price). If true, wow!

                        The momentum behind white box tablet production in Shenzhen is building. Chinese sources now believe shipments have climbed from 6 million units in August to 9 million in October.

                        Who’s buying all these tablets?

                        A source in Beijing describes them as “tablets shipped by no-name brands at about $50.” The end market is not necessarily China, but “mostly emerging economies including Southeast Asia, the Middle East, Eastern Europe, South America and Africa, etc.” He added that Chinese consumers “have similar tastes and demands as those living in the developed world. They don’t really buy these low-end tablets. They buy iPad or Samsung.”

                        If true, we may need to rethink not just the size of the booming tablet market, but the consumer revolution triggered by the tablet market well beyond China’s border.
                        The lack of recognizable brand names makes it that much harder to track unit shipments. Plus, chip shipment figures can be inflated or double-counted. Then there is China’s vast gray market.
                        Even taking all of those factors in account, the explosion of tablets in emerging markets is no mirage – and it might be spreading much faster than any one imagined.
                        For example, one source in Shenzhen estimates that  annual shipment of white box tablets this year could hit 50 million units.

                        With all that she (Junko Yoshida) came closest from the West to understand the new ICT phenomenon rooted in China. Now let’s look at what others have come to so far:

                        The overall tablet market trend is illustrated by IHS iSuppli via the tablet display shipments as follows: 

                        image

                        then it is described in Global Tablet Display Shipments to Soar by 56 Percent in 2012 [IHS iSuppli press release, Sept 17, 2012] as:

                        … [the first part of the press release is essentially giving information which is represented by the diagram above] …

                        LG and Samsung Dominate Tablet Display Shipments
                        LG Display and Samsung Display were the main suppliers of tablet displays in the first quarter with 42 percent and 38 percent shipment market share, respectively. Both are market leaders because they make the liquid crystal display (LCD) panels that are used in the iPad, which continued to dominate the media tablet space with a commanding 58 percent of all tablets shipped in the first quarter.
                        [LG Display holds 70% of iPad panel shipments [DIGITIMES, Sept 20, 2012]: while Samsung Electronics, Sharp and Chimei Innolux (CMI) have all been seeing decreasing shipments … CMI will make up less than 5% of overall iPad panel shipments by the end of the third quarter in 2012.]
                        Aside from supplying Apple, LGD also furnishes display panels to Amazon and Barnes & Noble, while Samsung provides panels to its internal tablet division. Investments are being made by the two major tablet panel suppliers in capacity allocation and technological improvements to supply high-performance tablet panels and to develop wide-viewing-angle technologies like in-plane switching (IPS) and fringe-field switching (FFS). Both LGD and Samsung Display are also looking to convert amorphous-silicon fabs into making oxide silicon panels to help improve tablet panel resolution, power consumption and overall performance.
                        Panel Manufacturers Enter the Tablet Panel Fray
                        Other LCD panel suppliers also are jumping into the fast-growing tablet market. In particular, Japanese suppliers such as Sharp, Japan Display and Panasonic are actively targeting the tablet panel market by dedicating capacity at their Generation 6 and Generation 8 fabs in order to make tablet panels.
                        Together the capacity allocation this year for small and medium displays by the Japanese is expected to increase 164 percent from last year’s levels, reaching 5.5 million square meters in 2012. Of particular interest is the oxide silicon capacity at Sharp, which has been supplying panels from its G8 fab for the latest iteration of the iPad—also called the new iPad. Another company, Panasonic, is likely to produce 7.x-inch and 8.x-inch tablet panels during the second half of this year.

                        For their part, LCD suppliers based in Taiwan, such as AU Optronics and ChiMei Innolux, reportedly are adjusting their business models—some to focus on tablets for the education sector, and others to supply tablets for the white-box market in China.

                        It is believed that AUO may be one of the suppliers qualified to supply the smaller iPad’s 7.85-in panels.

                        But unlike Tier 1 tablet display makers LGD and Samsung Display, Taiwanese panel suppliers primarily target the Chinese market that is geared more toward lower-priced tablets. To meet lower price points, display specifications are usually dialed down compared to Tier 1 products. Displays targeted at the white-box tablet market in China mainly employ the more basic twisted nematic (TN) LCD, not the wide-viewing-angle LCD technologies of IPS and FFS.

                        Regardless of the display technology and market segment, display suppliers are making sure they align their strategies to serve this fast-growing market.

                        Chimei Innolux to Win 40%-50% Share of White-brand Tablet PC Touch-panel Market [CENS, Aug 15, 2012]

                        Chimei Innolux Corp., the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, is expected to win a 40% to 50% share of the global market for white-brand tablet PC applications, according to the company.

                        Some 40 million to 60 million white-brand tablet PCs are expected to be shipped this year, similar to the total shipments of Apple`s iPad.

                        Major market research firm DisplaySearch recently forecast that some 121 million tablet PCs would be shipped worldwide this year, and the annual volume would increase to 416 million units in 2016, in conjunction with a compound annual growth rate (CAGR) of 28% over next five years. Apple would continue to be the market leader in next five years with a market share of 60%, while white-brand counterparts are expected to enjoy high growth due to their advantageous pricing.
                        Jeff Hsu, Chimei Innolux`s vice president, pointed out that demand for white-brand tablet PCs from emerging markets has been quite strong this year. In addition to sales in China, many Chinese white-brand tablet PC makers also export products to other nations. So, the annual demand for touch panels for white-brand tablet PCs this year is expected to reach some 60 million units, with 7-inch models as the mainstream and followed by 10-inch ones. Chimei Innolux aims to ship more than 25 million touch panels for white-brand tablet PCs, accounting for 40% to 50% of the application market, Hsu said.
                        Hsu also added that this year, the mainstream touch-panel type in tablet PC application has shifted from resistor to capacitive, which is expected to benefit many Taiwanese suppliers with more advanced technology. Jtouch Corp. of Taiwan, for example, is stepping up boosting production capacity of its new touch-panel factory in Hunan Province of China. The firm`s large-sized touch panels are expected to account for more than 20% of its revenue this year. Mutto Optronics Co., Ltd. recently also won big-ticket orders for tablet PC touch panels, and expected to see a 30% sequential revenue growth in the third quarter.
                        Google recently pushed its Nexus 7 tablet PC priced for only US$199, and the company immediately sold out one million units. A white-brand tablet PC with 7-inch screen is often priced for about US$100 only, and such more affordable device has won very hot market responses in Latin America, Southeast Asia etc. Currently, monthly tablet PC shipments in China are between three million and four million units.

                        However in Tablet PCs will have good sales in the third quarter [Micdigi from China, July 19, 2012], from a knowledgeable source in Shezhen:

                        In the first quarter of 2012, the manufactures have good business, but in the second quarter they have so worse business.
                        As they have produced so many products in the first quarter, they have large stock of goods that they have to mark down price to sell them.
                        In the second quarter of 2011, the tablet PCs has good sales. But in this year, it is so cold.
                        In the third quarter, tablet market will rebound.
                        VIA chips was the winner in all the chip manufactures last year.
                        But in this year, Allwinner with high cost/performance chips gets the winner.
                        Most of Shenzhen tablet manufactures export to other countries. Because Chinese do not like knock off tablet PCs or SurperPad tablet PCs, they like brand ones.
                        In the third quarter, the tablet market will rebound and the fourth quarter will be the boom season.
                        I think the manufactures must get ready for the fourth quarter.
                        They had better prepare products with high cost performance.

                        This is one of the reasons why Nexus 7 not yet allowed to enter China market [Sept 11, 2012]:

                        While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.
                        The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.
                        Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.
                        Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.

                        Tablet Shipments to Surpass Notebook Shipments in 2016 [NPD DisplaySearch press release, July 3, 2012]

                        Total Mobile PC Shipments Exceed 800M Units by 2017
                        Tablet PCs, such as Apple’s iPad, are expected to be the growth driver for the mobile PC market over the next few years. Tablet shipments will surpass notebook shipments in 2016, according to the latest NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report. Overall mobile PC shipments will grow from 347M units in 2012 to over 809M units by 2017.
                        While notebook PC shipments are expected to increase from 208M units in 2012 to 393M units by 2017, tablet PC shipments are expected to grow from 121M units to 416M units in this period, for a compound annual growth rate of 28%. A key driver for tablet PC growth is adoption in mature markets (including North America, Japan and Western Europe), which will account for 66% of shipments in 2012 and remain in the 60% range throughout the forecast period. Tablet PC shipments into mature markets will grow from 80M units in 2012 to 254M units by 2017.
                        Figure 1: Worldwide Mobile PC Shipment Forecast (000s)

                        Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
                        “Consumer preference for mobile computing devices is shifting from notebook to tablet PCs, particularly in mature markets,” said Richard Shim, senior analyst at NPD DisplaySearch. “While the lines between tablet and notebook PCs are blurring, we expect mature markets to be the primary regions for tablet PC adoption. New entrants are tending to launch their initial products in mature markets. Services and infrastructure needed to create compelling new usage models are often better established in mature markets.”
                        Figure 2: Emerging and Mature Market Tablet Shipments (000s)

                        Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
                        Building upon convenience-oriented features including instant-on capability, long battery life and extreme portability, tablet PCs are expected to evolve in form factor and performance, making them a compelling alternative to notebook PCs. Tablet PCs are expected to incorporate multi-core processors, increasingly stable operating systems, growing app libraries and higher resolution displays.
                        In addition, notebook PCs are also evolving to meet the challenge from tablet PCs. Thinner form factors, higher resolution displays and touch functionality features are expected to increase. The notebook PC market will remain the largest part of the mobile PC market during the forecast period, accounting for 60% of mobile PC shipments in 2012, declining to 49% by 2017.

                        Digitimes Research: China tablet SoC developers enjoy robust shipment growth in 2012 [DIGITIMES Research, Nov 20, 2012]

                        There has been a surge in demand for tablet-use SoC solutions in the China market thus far in 2012, benefiting local IC design companies such as Allwinner Technology, Rockchip Technology and Amlogic, according to Digitimes Research. The tablet-IC market in China is dominated by local SoC developers, which mainly adopt the ARM architecture enabling a low-cost and easy-to-design platform.

                        Shipments of China makers’ branded and white-box tablets destined for the local market are forecast to reach about 15 million units in 2012, while those destined for overseas will climb to as high as 44.15 million, Digitimes Research said. In total, shipments of China makers’ branded and white-box tablets are estimated at nearly 60 million units in 2012, Digitimes Research indicated.

                        China’s white-box tablet companies will account for 81% of the overall units shipped in 2012, Digitimes Research said. Shipments of China’s brand-name tablet companies are set to reach only about five million units in 2012, Digitimes Research added.

                        Europe, the Middle East, Southeast Asia and South America are the key markets which China-based tablet exporters will target in 2012, Digitimes Research noted. The exporters, mainly white-box makers, have their products sold through local distributors and telecom carriers in the target markets. [8%]

                        Allwinner will unseat Rockchip as the top developer of tablet SoCs in 2012. Allwinner is forecast to ship a total of 22 million chips in 2012 [37%], while Rockchip‘s shipments will total 12.5 million units [21%], Digitimes Research said. Amlogic will rank third with shipments of 5.5 million units [9%],  followed by Taiwan-based VIA Technologies with 4.5 million units [8%], according to Digitimes Research.
                        Source: Digitimes Research, November 2012

                        Non-Apple tablets to drop to US$150-200 upon release of upcoming 7.85-inch iPad [DIGITIMES, Sept 18, 2012]

                        Tablets priced US$199-400 are expected to drop in price to US$150-200 in order to help non-Apple tablet makers stay competitive when Apple releases its reported 7.85-inch iPad, according to industry sources.
                        The sources are predicting that Apple will have a big influence on the 7-inch tablet market just like it currently has with its 9.7-inch iPad series and competitors will need to drop their tablet prices as well as provide more value-added features for the devices, said the sources.
                        If major tablet makers were to drop product prices they would most likely not incur losses as many makers make a substantial amount of profits from 3G plans with telecommunication providers, added the sources.
                        The sources still haven’t confirmed an exact release date for Apple’s 7.85-inch iPad but are expecting it will be early in the fourth quarter.

                        MediaTek’s Q3 sales expected to beat company’s guidance [Focus Taiwan, Sept 16, 2012]

                        … Bill Lu, a Morgan Stanley analyst in Hong Kong, expected MediaTek to ship over 200 million smartphone chips in 2013 by offering a more complete solution to Chinese handset. …

                        Another upside factor for MediaTek is growing interest in “white-box” tablets in emerging markets, which could approach 100 million to 150 million units in 2013 and drive up MediaTek’s revenue if the company can tap into the supply chain, Lu said.

                        A white-box tablet is a model without a registered brand name, which is usually sold more cheaply than branded tablets to gain traction among price-sensitive consumers.

                        Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]

                        Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.

                        An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.

                        Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.

                        White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.

                        China white-box vendors showcase tablets at HK fair [DIGITIMES, April 16, 2012]

                        Many China-based white-box vendors are showcasing 7.0-inch tablet PC models at shipment prices of US$65-80 and 10.1-inch models at US$100-110 at the 2012 Hong Kong Electronics Fair (Spring Edition) taking place during April 13-16.
                        These white-box vendors include Dream Technology, Aocos, PCTX, HKC, Onn and Onda.
                        These tablet PC models are equipped with chipset solutions mostly developed by China-based Allwinner Technology, Android 4.0, Wi-Fi modules, 4GB built-in memory, 800×480 or 1,024×600 16:9 touch screens, plastic casings. In addition, 9.7-inch tablet PCs equipped with IPS touch screens and metal casings are priced at US$130-140.
                        If these tablet PC models are also equipped with 3.5G modules, shipment prices will increase by US$45 on average, according to white-box vendors.
                        White-box vendors indicated that they have reached combined shipments of three million tablet PCs a month.

                        China-based white-box tablet PC makers ramping up shipments, say sources [DIGITIMES, April 13, 2012]

                        China-based white-box tablet PC makers have ramped up their combined shipments to three million units a month recently, and total shipments of tablet PCs by all makers are expected to top 50 million units in 2012, market research firm eMedia Asia has estimated.
                        In Guangdong province alone, hundreds of small- and medium-size businesses have entered the development and production of tablet PCs on an OEM, ODM or OBM basis, according to industry sources.
                        With the availability of Android 4.0 platform, white-box makers have rolled out tablets in 7-, 8-, 9.7- and 10.1-inch sizes with specifications catered to customer’s demand, said the sources, adding that the models target markets in the Middle East, Southeast Asia and Latin America.
                        The white-box makers are able to deliver a 10.1-inch model, which runs on Android 4.0 and has a display resolution of 1024 by 600 and 4GB built-in storage, at FOB prices of about US$100-110, indicated the sources.
                        Shipments of tablet PCs by China-based makers totaled 14 million units in 2011, eMedia Asia said.

                        Suggested further reading: Here is a recent set of briefing documents produced by Seasize Technology Co., Ltd, formed in 2007 in Shenzhen China with roots in trading of electronic goods for export as early as 2005, see: Support [Seasize, Aug 20, 2012] 

                        Download Free
                        CHINA TABLET PC SOURCING GUIDE (English) [Aug 8, 2012]
                        This is a guide to purchasing (“sourcing”) from China, and working with Chinese factories. It will probably be most helpful to people like me – entrepreneurs developing a new product or starting a new business that need to obtain parts and raw materials from China. It is written humorously, but hopefully there is some useful advice.
                        CHINA TABLET PC WHOLDSALES MARKET 2012(English) [Aug 7, 2012]
                        This article is provided by Seasize Technology- professional tablet PC manufacturer in Shenzhen,China, exclusively to customers. You may share this information to your friends and colleagues. Seasize should not be held responsible for any information that may be misleading or incorrect.
                        CHINA TABLET SOLUTIONS INTRODUCTION(English) [Aug 8, 2012]
                        This article is provided by Seasize Technology- China popular tablet pc solutions:chips company&chips introduction. The performance of a tablet model is determined by the tablet solution. To select and source the right tablet products, you have to know the difference among tablet solutions and identify the right tablet designers and manufacturers.
                        which are giving a kind of industry insider’s view into the complex world of the Chinese ICT goods market.
                        How relevant is it? A year earlier Company Introduction [Sept 5, 2011] described Seasize Technology’s business as:
                        After years of development, Seasize technology already has a strong domestic procurement and export capacities. We are committed to provide affordable and quality digital video and GPS navigation products. Our company persist the principle of: Customer first, quality first not only meets the needs of customers and has been recognized by customers.
                        Since its inception, the company mainly engaged in two major product lines: digital audio playback systems and GPS navigation devices,
                        Digital audio and video aspects of the products covered MP3/MP4/MP5 players, digital TV set-top box, digital television etc.
                        GPS navigation devices contain : GPS navigator, GPS tracker, networking version of GPS, GPS navigation and digital TV combo products, and the recently launched GPS navigation function with Internet personal terminal device (MID).
                        Based on trade in the same time, has been developing its own brand and own technology products, after years of effort, the company has filed multiple patents in the country, and has registered the brand. Dependent on many years of trading experience and technology accumulation Seasize Technology already has more advanced ability to enter  this industry. It can be  expected in the near future that we will get a place in the relevant fields, and access to long-term development.
                        Its new profile [May 27, 2012] stated a subsequently changed description as:
                        After years of development, we have grown up into a strong company which enjoys many advantages from procurement, production and export. We have passed ISO9001:2008 certificate in year 2011 and established a standard quality system that will ensure our delivery of quality product to our customers. Our product lines include two areas: digital audio&video products and GPS-related products. We are committed to provide our customers with cost-effective solutions, whose value has been seriously balanced against its prices.
                        and then there is a SOURCING GUIDE-Android Tablet pc,tablet pc,wifi tablet pc,google tablet pc,tablet pc review,wholesale tablet pc [Aug 8, 2012] page which was quite probably the marketing campaign page for the above documents with leads generated via registrations for each, with more direct indication of the China Tablet Solutions Introduction [Aug 8, 2012] as well as another one of Risks of Doing Business in China.
                        Seasize therefore is definitely trying to expand its purchasing business as well, so its documents could be valuable, even sufficiently authentic for those people who are potential partners of Seasize. As such these documents might describe the purchasing situation over there for everybody else as well. For Seasize’s track record of activities see: Seasize Technology Co., Ltd.: Newsletter Archive [May 31, 2011 – Aug 7, 2012 and beyond].

                        4. The Allwinner advantage 全志

                        image珠海 Zhuhai 全志科技 Allwinner Technology (150 ~ 499 employees) — 148 campus hirees only for 2013 (click here for a full content) recruited with a roadshow held in:
                        – 西安 Xi’an: at 西安交通大学 Xi’an Jiaotong University (XJTU) on Sep 18; at 西安电子科技大学 Xidian University on Sept 21
                        – 哈尔滨  Harbin: at 哈尔滨工业大学 Harbin Institute of Technology on Sept 25
                        – 武汉 Wuhan: at 华中科技大学 Huazhong University of Science & Technology (HUST) on Sept 22.
                        – 广州 Guangzhou: at 华南理工大学 South China University of Technology (SCUT) on Sept 17, at 中山大学 Sun Yat-sen University TBD
                        – 成都 Chengdu: at 电子科技大学 University of Electronic Science and Technology of China (UESTC) on Oct 11.

                        image

                        From jobyun.com:
                        = US$ 1,113

                        Company Overview of AllWinner Technology Co., Ltd.
                        [Bloomberg Businessweek]

                        AllWinner Technology Co., Ltd. engages in mixed-mode SOC technology research and VLSI design. The company’s products are used in high-definition television and digital photo frame markets. It also provides support services. The company was founded in 2007 and is based in Zhuhai [Guangdong province], China.

                        From: AllWinner Technology Selects ARM Cortex CPU and Mali GPU Technologies To Bring Integrated SoC To Android OS-Based, Connected Consumer Devices [ARM press release, April 12, 2011]

                        AllWinner Technology Co., Ltd was founded in 2007, and is engaged in mixed-mode SOC technology research and VLSI design.  AllWinner Technology is dedicated to be the major leader in the HD media field, to excel in low-power VLSI design, advanced technology and innovative architecture; to be the pulse of the consumer market, with a unique understanding of self-developed core technologies.  Through functionality, performance and cost advantages of integrated products and the industrialization of the operational capabilities of the market to provide customers with leading designs and services from SOC products to comprehensive solutions. 

                        From: Zhuhai sez daily: Gan Lin investigated in high-tech zones “two little two two high” enterprise [Allwinner press release, June 10, 2010]

                        Gan LinParty Secretary of Zhuhai city … accompanied by director of the CMC Qiu Shi, successively investigated the Kingsoft Park (Jinshan Software Park) project site, Xuan Garment Co., Ltd. Design Center, BOXlight (Po Wright) Medical Technology Inc., Tin Shui Power Technology Limited, Allwinner Technology Co., Ltd. and Bioenergy Limited. …
                        Zhuhai Allwinner Technology Limited is committed to becoming a leader of application requirements in the area of key technologies for HD multimedia and communication networks, radio and television networks, and the Internet “triple play”; specializes in low power VLSI design capacity of independent research and development of core technologies, has completely independent intellectual property rights. According to the General Manager [Chairman and CEO] of the company, Zhang Jianhui (张建辉), the Allwinner company was established in 2007. In the first two years to April 2009, the company had been working hard on technology R & D and did not earn a penny, then launched two categories for the introduction of a series of nine full HD network integrated smardescriptiont chips in order to become one of the leading manufacturer of ultra-large-scale system-on-chip and embedded software technology.

                        The roots of the Allwinner Technology:

                        May I ask [about] Zhuhai [珠海] Victory Technology [全胜 科技] – How can I like it? [http://laoyaoba.com in Chinese, Oct 23, 2010]  

                        Looking for a job, this company has come to our school, a little want to go, but I don’t know how on Earth is this company, [since there is] almost no information on the Internet, looking for an insider look, appreciate it!

                        The entrepreneurial team of Zhao Guangmin[赵广民先]’s [Zhuhai] Actions Semiconductor Co., Ltd. was brought over after Zhao’s unfortunate, untimely death. The Zhang Jianhui[张建辉]-led team, however, is still very strong in the Chinese semiconductor industry. It began to grab the PMP [Personal Media Player >>> MP3 etc.] market share last year, and it is estimated that [its] revenue this year should be around $ 30 million ….

                        The life and spiritual heritage of the legendary Chinese IC design industry leader Zhao Guangmin [Baidu in Chinese, Aug 27, 2007]

                        … In early 2006, Zhao Guangmin left Actions, where had been working for a number of years, and with a number of like-minded partners co-founded Victory (Zhuhai) Microelectronics Co. as chairman with aspirations to win a new peak. …

                        Actions pass the sudden departure of founder, investors have been excluded [VentureData.org, April 4, 2006], the picture of Zhao Guangmin below is from this source which is the Chinese origin of this material below:

                        Led the company successfully landed on the Nasdaq after 4 months, founder of Zhuhai Actions Semiconductor Co., Ltd. (hereinafter referred to as “Actions”), Zhao Guangmin [then vice chairman of the company] suddenly announced his resignation.

                        Zhao Guangmin the early 1980s graduated from Xi’an Jiaotong University, has a number of Semiconductor companies in the office. Zhao Guangmin founded in December 2001 and served as general manager [not CEO] of Actions. Actions a total investment of $ 10 million, primarily engaged in the development of VLSI design and test production. Taiwan-funded by the holding of shares in which Zhao Guangmin unknown.
                        Under Zhao Guangmin leadership, relying on keen to capture the opportunity to MP3 chips, Actions to achieve rapid development. In 2002, Actions Semiconductor sales only 1.08 million yuan [US$ 130K]; in 2003 sales increased to 4,000 million [US$ 4.3 million – see the chart later]; in 2004 sales soared to more 460 million [US$ 55.5 million], net profit up 200 million yuan [US$ 24.1 million].
                        At the same time, Actions also introduced more than a dozen proprietary chip. In 2004, the company was selected as the China Semiconductor Industry Association, the annual top ten IC design companies. To the fourth quarter of 2004, Actions in the global chip market share in the first MP3.
                        November 30, 2005, to Actions as the main Action Semiconductor Co.Ltd (Nasdaq: ACTS) in the U.S. Nasdaq market, the first phase of financing $ 72 million. Since listing, the market responded well to the Actions, and there have been investment banking analyst cut its rating to “buy.”
                        Actions with the same period of rapid development and to the patent dispute. Zhao Guangmin issue in the mail two days before departure, the U.S. International Trade Commission a preliminary ruling, Actions part of the audio processor infringes two U.S. SigmaTel’s patents. SigmaTel is the world’s leading mobile phones and digital audio players, chip vendors, the company early last year to the U.S. District Court in Austin, sued Actions Semiconductor infringed its patents.
                        “Now I can not say anything, but to leave and certainly nothing to do with the lawsuit.” Zhao Guangmin side of the phone hesitantly.
                        Zhao reasons for leaving, Actions official answer is “retired.” One of the company staff responsible for media relations, said, “Although less than the retirement age, but Zhao fame in this industry has made the decision to retreat is also very natural.”
                        However, close to Zhao Guangmin the industry does not think so. He said that Zhao’s departure and the investors.
                        The source said, as early as Actions Prior to listing, to facilitate investment in the idea of ​​a replacement company executives. Public information, Zhao Guangmin general manager of the term of Actions of August 2005, is the company going public push. Zhao’s successor as general manager, is working with many years experience in the semiconductor industry, China Taiwan nationals Yenan Hong.
                        On this course, after listing a media interview, Zhao Guangmin stunned: “In order listed, and sometimes take their cut first!”
                        According to Zhao said, in order to make more in line with investors Actions taste, Actions update prior to listing a number of board members and executives. Most of these people in the chip industry has a deep background and is familiar to foreign investors, including former vice president of operations SMIC Chiu Tsz Wan.
                        Interestingly, in the Actions of the prospectus, as the founder of Zhao Guangmin not appear in the list of shareholders, executives, Zhao’s team did not name.

                        Further explanation is given here, only two sentences are important to quote (the picture of Zhao Guangmin below is from this source which is the Chinese origin of this material below):

                        … [Till] June 2005 Zhao Guangmin has been Actions’ general manager, [then] since June to become vice president, and in November the company officially listed [that] Zhao Guangmin had [been] transformed into a vice chairman. … In fact, although Zhao Guangmin since 1993 as was general manager of Zhuhai Actions, but he has had no control of the company, the company has had been in a firm grip on the hands of equity investment in Taiwan.

                        Note that Actions is a still existing company keeping its description as under Zhao Guangmin’s leadersip: About Actions [Sept 6, 2005]

                        … Actions has successfully put into market some products, such as digital audio/video SOC chip and its total solution, a series of IC for digital potential meter, SOC chip for TV entertainment products and its total solution, … etc, since the first day it was found. All Actions’ products are under the protection of intellectual property law, and have been gradually showing their competitive power after directly joining the international market.

                        With management and techniques accumulated, high-tech and product positioning, precise market position, strong innovative power, Actions sustains fast improvement and development. In 2003, Actions was identified as one of the top 10 fastest growing IC design companies within the China area by the China semiconductor association; the same situation will happen again in 2004 as well.

                        Actions’ latest product developed under his leadership: Actions Introduces New Video Technology — Advanced Media Video (AMV) [Actions press release, April 10, 2006]

                        … provides comprehensive mixed-signal system-on-a-chip solutions for portable consumer electronics, today introduced a new generation of video technology, Advanced Media Video-AMV3.0.  This new technology supports a higher degree of picture resolution (QCIF i.e. 176 x 144), a better display of motion picture than the AMV1.0 and 2.0 technologies, and is capable of converting SWF files and other regular movie formats.  This technology was developed specifically to be the video engine for Actions’ new 9 series SoCs.
                        The history of Actions’ audio and video technology can be traced back to 2004, when Actions introduced two video technologies, MTV1.0 and MTV2.2, ahead of a majority of its competitors. This breakthrough innovation of Actions had risen the technology playing field of the entire digital music industry to a higher level.
                        “Although our current 9 series SoCs require conversion software to enable playback, our next generation of SoC products, embedded with a MIPS core, will support direct streaming video playback.  With the benefits of a MIPS core, the data processing speed will be much faster,” continued Mr. [John] Lee [Senior Product Manager of the company].
                        “The advancement of our MIPS core technology will remain consistent with our development in AMV4.0.  Furthermore, based on the MIPS platform, both the design house and the manufacturer will be able to freely take full advantage of their expert technology, thus providing them with a favorable position in a fiercely competitive market,” concluded Mr. Lee.
                        Here is the “Proven Management Experience and Expertise” slide (#11) from the May 2006 Corporate Overview of Actions presentation. Note that this was immediately after the departure of Zhao Guangmin and there were three managers from the original founding team, neither of them with executive power (as evidenced by EDGAR submissions), and only Shao Chuan (Shawn) Li is still with Actions as a director of the board (since September 2005) but more importantly as Chief Technology Officer (since the establishment of Actions in December 2001), while Zhang Jianhui was the head of Multimedia Division and as such he was the topmost manager with core innovation competency, and it was no surprise that he left Actions when Zhao Guangmin established his next venture, Victory (Zhuhai) Microelectronics Co. which after his death became the current Allwinner managed by Zhang Jianhui. (There is no information about Gong Hui.) Note as well that at the time of that presentation Actions had 280 employees; 210 engineers with IC, system, and software capabilities.
                        image
                        imageIt is quite remarkable that after Zhao Guangmin’s departure Actions went into decline as visible from the chart showing the revenues generated by the company. With $150M in 2005 Actions was the second-largest China-based fabless company. Employing not less than 280 people in 2006 the new Taiwanese executive duo of Nan-Horng Yeh as CEO and David Lee as CFO (both educated in the United States) have completely failed. This is all despite of their strategy to move into midrange products by developing mobile TV SoCs via licensing core technology from U.S.-based Mavrix Technology. See: SoC firm finds fertile ground in China [EDN, Aug 22, 2006]. This licensing decision led only into an industry sideline with stronger external reliance on MIPS processor cores (originally selected by Zhao Guangmin in July 2005 as the vice president, but for fast internal development) and a subsequent, necessary acquisition of Mavrix as licensee in 2010. Paradoxically Mavrix’s CEO, Dr. Zhenyu Zhou became even the CEO of Actions in December 2011. Only David Lee has still a high-level position with the company as chairman of the board. The future outlook for Actions is also rather uncertain as only a single analyst had any interest in the company’s Q2 2012 Results Call [Aug 7, 2012].

                        What a contrast with Zhao Guangmin’s new company which became after his death today’s Allwinner. Here is the Commemorate [what] Zhao insisted: a win-win situation, team together and do things realistic [Aug 24, 2007] by his deputy (??) and effective successor in charge of his Victory Microelectronics Co., Ltd., Zhang Jianhui:

                        Zhao went away from us, the circle of friends chatted about Zhao, and so far we are still unable to accept that this is a fact. Remembered Zhao, in addition to in the legendary entrepreneurial experience at Actions, we talk about the most, is the insistence of Zhao and low-key.
                        Speaking of the insistence of old Zhao, when Zhao won the Zhuhai Special Economic Person of the Year in 2004, in an interview he said: “As long as you choose the right direction, be sure to persist in walking, did not insist on was not successful.” It is this insistence on belief and perseverance of action which created Zhao’s unusual success story.
                        First, Zhao insisted on the concept of win-win, through the development of core IC products to add value for the customer, and industry chain downstream supporting enterprise vertical and horizontal, building win-win business model among enterprises, resulting in overall lead between the company and the customer.
                        Zhao served as general manager of Actions by virtue of more than 10 years accumulated of IC design and enterprise operating management experience. He led there a well-trained professional operating team to share common goals, to carry out efforts with hard work, to get global semiconductor industry attention via achievements. This made Actions from an unknown small company, in just a few years, China IC design industry’s  first to become a globally known enterprise. The MP3 multimedia master chip R & D accounted for more than 50% of the world market share. This led to billions of dollars via the quick formation of the MP3 industry chain in China, prompting mainland China to become world’s major export base of MP3 which has brought tremendous development and benefits to the consumer electronics industry [here].
                        This was for the first time as a mainland China IC design company established itself in the field of global consumer electronics products, mastered and mass provided the core technology products with international advanced level. Actions’ operating income grew significantly from a few million yuan in 2002 to 1.2 billion yuan in 2005, [thus] creating rapid growth of more than 100 times for the Actions Semiconductor in three years only, and [then] eventually prompting the success of Actions to be listed on NASDAQ.
                        Second, Zhao insisted on the need to uphold the integrity of the fundamental values [which] can be established between the team and the customer, [on the] long term sustainable growth of business culture, [that] the strength of the team is always greater than the power of any individual.
                        In the early venture days of Actions Zhao personally wrote a column for the internal publications, talked about the issues of development ideas and the reform of corporate culture, and also to encourage other executives to write articles for publication. Fixed each Wednesday [?his?] commuting leadership talked about the exchange of business issues, to develop common thinking habits and language of communication – because every time before this would open, the kitchen will cook a pot of noodles as participants of dinner, affectionately called “noodles will”.
                        This will sometimes be open until two o’clock at night, and the truth is argued more and more out; companies and departments use the monthly regular meeting with employees face-to-face communication. After a year passed, not only everyone has made great progress, but he also formed a fully functional teamwork of high degree of homogeneity and quality, great combat effectiveness of entrepreneurial backbone of the team, and subsequently laid a very good foundation to the success of the company.
                        Third, Zhao insisted on doing anything seriously, down-to-earth. He used to say that a 99.99% working IC is still not working. Design paradoxes are in place, it is where the BUG. In 1995 I and old Zhao did cooperative research and development projects for the first time. I was responsible for the system design, Zhao for the circuit design. There was no RTL coding method as now, the circuit was built by human hand structures. Zhao’s design adhered to repeated scrutiny and carefully optimized design logic based on clear, simple drawing. Sometimes he explained to me where is the circuit of the collar, which is the heart of the circuit and the limbs, old Zhao could meander, and the favorite circuit design is input ready.
                        It is quite unfortunate that China’s IC design industry has lost an outstanding leader, and friends lost an honest, down-to-earth best friend. However, true to Zhao’s spirit, I believe in increasing prosperity and burgeoning growth of Chinese IC design, offering useful lessons and inspirations, and I believe this will also correspond to Zhao’s heartfelt wishes and expectations.
                        Mr. Zhao Guangmin may rest [in peace] .
                        Author: Zhang Jianhui, Victory Microelectronics [全胜] Co., Ltd. (Zhuhai), general manager, for the friends and colleagues of Zhao Guangmin years
                        For more information see Mr. Zhao Guangmin Memorial page [Aug 29, 2007] of eMedia Asia Global resources. Note from there that he entered the university in 1977 which is the first year of entry after the Cultural Revolution when only exceptional people were able to enter the universities. More explanation about that phenomenon see in Yoshida in China: Cultural rev survivors leap forward [EE Times, Oct 1, 2012]

                        Allwinner’s close cooperation with ARM Holdings started with Victory Technology selects ARM processor for ultra-low-power high-definition network video applications [joint press release available only in Chineese on eetrend.com and elsewhere, Feb 9, 2010]

                        ARM926EJ-S processor to achieve high-definition video processing while reducing power consumption by up to 50%.
                        Zhuhai Victory Technology Co., Ltd. (referred Victory Technology) and ARM [(LSE: ARM); (Nasdaq: ARMH)] today jointly announced: Victory Technology licensed the ARM926EJ-S ™ processor for its IC design for ultra-low-power high-definition network video applications. These applications include: home Internet video streaming via the Internet, cable television and wireless network high-definition video player and other network video equipment.applications include: home video streaming via the Internet, cable television and wireless network high-definition video player and other video devices on the network.
                        Victory CEO Zhang Jianhui said: “In addition to the well known high-performance and low-power characteristics, another important feature of the ARM ® processors is versatility, they can bring better scalability, reducing the workload and difficulty of development, and shorten time to market. These features help us design IC products for the fast-changing Internet video applications, and are very important. ARM has always spared no effort to promote innovation through its strong product planning, which provides an opportunity for us to further cooperation in the future. The resources required to design the system is very rich around the ARM ecosystem, and we are very confident in each other’s cooperation capability that it will be successful.”
                        With more and more Chinese consumers having broadband access at home or on the move, China’s Internet video applications market is developing very rapidly. With rich experience in the field of video processing technology, as well as a deep understanding of the market, combined with ARM’s top high-performance, low-power processor technology Victory Technology has the capability to meet the standards and local consumer demand to develop IC products for the high-definition Internet video equipment. Through the use of excellent performance at low power consumption of ARM926EJ-S processor as well as Victory Technology’s ultra-low-power design techniques, the company hopes that its new chip can achieve 50% of energy consumption savings versus the similar products on the market, without sacrificing performance needed for HD video streaming on the Internet.

                        Brief English content appearing about the same on Sept 26, 2012:
                        Gan Lin, Party Secretary of Zhuhai, Visited Allwinner Technology

                         

                        全志科技

                        全志科技

                        Gan Lin, Party Secretary of Zhuhai, accompanied by several other leaders, visited Allwinner Technology on June 10, 2011.
                        During the visit, Gan gave Allwinner Technology credit for its independent R&D and spirit of leadership in technology. He pointed out that Allwinner Technology should continue embracing innovation to boost its competitive edge and accelerate the development of strategic emerging industry.

                        A10 won “The Most Promising Award” on the Sixth “China Chip” Ceremony [Allwinner press release, in Chinese: Dec 31, 2011, reproduced in English: Sept 26, 2011]

                        Allwinner Technology A10, xPad SoC of High Integration and High Definition, has won “The Most Promising Award” in China IC Industry Promotion Conference 2011, also the sixth “China chip” ceremony held in Jinan on December 16th.
                        The China Chip hosted by the Software and Integrate Circuit Promotion center (CSIP) of Information Industry Ministry, is a rather influential ceremony among domestic IC enterprises, experts, as well as other manufacturers involved in the industry chain. More than three hundreds enterprise representatives attended this ceremony.
                        On the basis of striking video codec technology, DVFS, multi-core multiplexing technology, and advanced 55nm process, A10 outruns other competing solutions in its high integration, and outstanding multimedia and network processing capability. It supports 3D video playback, 2160P ultra-HD video decoding and 1080P HD H.264 video encoding, multi-screen, and integrates full-format audio codec engine, rich A/V outputs such as HDMI, LVDS, VGA, TVOUT, etc, and memory interfaces such as DDR3, DDR2, LPDDR1, NAND flash, etc, plus its edge in BOM and power consumption, it becomes one of the most favored solutions after marketing for several months, and is honored “the most promising” solutions in this ceremony.
                        Zhang Jianhui, General Manager of Allwinner Technology, said that this award bears testimony to the efforts Allwinner has made in the past few years, and will definitely encourage Allwinner to come up with better solutions to meet customer demand, and carry forward the IC industry.

                        Allwinner Technology and ARM working together to get to market quicker [ARM’s Multimedia blog, June 19, 2012in Chinese on Oct 4, 2012]

                        Attached ImageThe dynamics of the mobile device industry can be seen in the rise of tablets and in particular the growth in Android based tablets. This new form factor has grown to an expected 100M shipping volume in 2012 with this being projected to exceed 200M by 2016 – when Android tablet shipments is expected to be over 50% (Source: IDC). This new form factor and pace of change have opened up opportunities for new companies to offer specific System on Chip (SoC) businesses a chance to address this market. Allwinner Technology Co., Ltd.is one of these. Over the last 12 months Allwinner Technology has become one of the major China Android tablet SoC chip vendors, with many of the Android tablet OEM system makers adopting our chip and system solution. A key industry analyst in China expects 40M Android tablets to ship in the China grey market in 2012, and it is expected that 60% of the share will be from Allwinner Technology.
                        Attached ImageThis rapid time to market has been achievable through the close working relationship and usage of ARM Intellectual Property (IP). Allwinner Technology uses a combination of the ARM CortexTM-A8 and ARM MaliTM-400 MP. This combination enables Allwinner Technology to balance the required performance needs for tablet applications with the power consumption boundaries of a mobile device. By working with ARM for both CPU and GPU elements Allwinner Technology have been able to maximize the benefits of both high performance with low power consumption that ARMs years of knowledge in the mobile device market brings to new entrants to the market.
                        Allwinner Technology has gone from the licensing [in April 2011] of the Mali-400 to production silicon in 7 months . This speed of execution has been enabled by the close linkage between the CPU and GPU from a design perspective, the RVDS [toolchain, the legacy solution for software development on older ARM processors replaced by the new ARM Development Studio 5, DS-5] and ARM DS-5TM toolchain [comprises tools such as the best-in-class ARM C/C++ Compiler, a powerful Linux/Android™/RTOS-aware debugger, the ARM Streamline™ system-wide performance analyzer and real-time system model simulators, all conveniently packaged in a user friendly integrated development environment (IDE) based on the Eclipse] and the out-the-box quality software drivers which are all supported by localised support teams. All these elements combined have enabled Allwinner Technology to move swifter and in an agile way to address the needs of this market and we look forward to working with ARM going forward.
                        Attached Image
                        Guest Partner Blogger:
                        Jack Lee, CMO, Allwinner Technology Co., Ltd.

                        ARM gaining traction in GPU IP market [DIGITIMES, June 22, 2012]

                        … ARM has expanded its GPU licensee base at a fast pace, according to Kevin Smith, VP of strategic marketing at the firm’s media processing division. Taking the China market as an example, ARM’s Mali GPUs are currently shipping in over 70% of graphics-enabled digital TVs, 50% of Android tablet PCs and 20% of Android phones, said Smith.
                        ARM’s partners are forecast to ship more than 100 million Mali GPUs in 2012, up over 100% from 2011 levels, Smith indicated. The anticipated shipment rise – driven by brisk demand for Android smartphones and tablets, and China’s growing smart-TV market – will boost ARM’s presence significantly in the global GPU-IP market this year, Smith added.
                        ARM’s Mali GPUs are targeted at smart TVs, handsets and tablets, which require high-definition graphics and higher picture fluency, Smith stated. The product line has been enhanced to meet various customer needs such as high-resolution images, multi-game offerings and energy saving, Smith said.

                        Combining with ARM’s CPU platform, the Mali GPU technology comes with additional features such as power efficiency, Smith noted. The combination is able to generate a complete multi-IP solution, Smith said.

                        In addition, Smith indicated that ARM’s solutions are able to help system customers speed up time-to-market. For example, it took less than half a year for both China-based AllWinner Technology and Rockchip Electronics to launch their integrated CPU-GPU SoC solutions targeting the local tablet PC market, Smith said.

                        New ARM DS-5 v5.9 Toolchain Provides Developers With an Integrated Processor and GPU Software Optimization Platform For Mobile Gaming [ARM press release, March 5, 2012]

                        ARM today released the latest edition of the ARM Development Studio 5 (DS-5™ v5.9) toolchain with additional support for graphics analysis on ARM Mali Graphics Processing Units (GPUs). The toolchain can be downloaded by developers today, enabling them to achieve integrated optimization across the whole system, including both the applications processor and GPU. The ARM DS-5 v5.9 toolchain provides significant benefits to semiconductor suppliers and OEMs, as well as mobile application and game developers, by enabling improved system visibility and decreased time-to-market. In particular, the ARM Streamline™ Performance Analyzer, within the DS-5 toolchain, allows developers to design more interactive interfaces and immersive game play for end users whilst extending battery life. This will enable next generation user experiences for use on smartphones, tablets, smart-TVs and set-top boxes.
                        The launch of the updated toolchain addresses the increasing demand for high-performance graphics development. Such advanced visual computing capabilities will deliver next generation smartphone and tablet applications where console-like gaming graphics, 3D User Interfaces (UI) and Augmented Reality (AR) will be the norm. Multicore systems, such as these, benefit from optimization of intensive tasks where integrated applications processor, GPU and memory subsystem designs can be configured to achieve the highest levels of performance and energy-efficiency.
                        By using the ARM DS-5 v5.9 toolchain, developers can quickly and easily locate system performance bottlenecks across the Cortex processors, Mali GPUs and System IP, enabling the creation of faster applications and accelerating the software development cycle.
                        … [additional information: Developing Top Performing Graphics Applications for Android Made Easy [ARM’s Software Enablement blog, March 7, 2012] and

                        ARM Launches Free Toolkit For Android Application Developer Community [ARM press release of the DS-5 Community Edition, Nov 28, 2011]]

                        The first Allwinner A10 tablets came to the market from a number of vendors in November 2011. See just these reports by Micdigi from China:

                        In December more tablets of that kind came to the Chinese market as Micdigi reported:

                        The tablet based on Allwinner A10 processor and 5-point touch capacitive screen [Dec 7, 2011]

                        Recently, Allwinner tablet PCs are so popular. 7-inch capacitive screen tablet based on Allwinner [Cortex-]A8 solution sells for only $80.

                        Now I will introduce a tablet based on Allwinner A10 from Shenzhen HongYuXing.

                        Based on Allwinner A10 processor, Q780 is launched [Dec 8, 2011]

                        Allwinner A10 has so good cost performance that it is the most suitable chip for entry level tablet PCs.

                        Q780 from Shenzhen Xlong is launched.

                        Allwinner A10 tablet—PC741 [from Shenzhen Inote] [Dec 12, 2011]

                        Now the tablet chips are like a hundred flowers in bloom, like ten thousand horses galloping ahead. Allwinner A10 appeared late in the market but they came back. At present most of the tablet PCs from China are based on Allwinner A10 chips.

                        Q701 based on Allwinner A10 [Dec 16, 2011]

                        With cheap price and powerful performance for video playback, Allwinner A10 processor is popular in the world.

                        Q701 is introduced Allwinner A10 processor.

                        Then the events unfolded as follows:

                        Based on high cost performance, Allwinner A10 has good sales after the Spring Festival. The chips with high cost performance are welcome.

                        AMLogic based on A9 core is a high-end chip, which is introduced by SONY and Philips.

                        RockChip chips became cheaper and cheaper since Allwinner released A10.

                        As the first chip of Allwinner, A10 is released with cheap price, which makes it has good sales. Allwinner is a famous company in MP3 times so that Allwinner has a strong customer base.

                        In addition, A10 has few bugs since it is released. The performance of other chips is not stable in the beginning, such as RK2808 and VIA8505.

                        The agents who have ordered VIA chips go to order Allwinner A10. VIA will release VIA8850 next month [but mass production just started in June, see later] which is based on A9 core. The performance is not different from A10. It means that it does not have any advantage.

                        VIA8850 will be cheaper than Allwinner A10. Allwinner will release A13 to compete with VIA8850 so that VIA will get in a difficult position. [Was more expensive the the A13 when  mass production started in June, see later]

                        MTK will release MTK6575 which is the upgraded version of MTK6573, based on dual-core, 1GHz frequency and A9 core. The chip with excellent call function is mainly introduced by smart phone. It is also suitable for tablet PCs.

                        AMLogic will release AMLogic M6 and RockChip will release RK30XX. They are all dual-core chips.

                        [for RK30XX  and the earlier RK29XX and RK28XX see MWC 2012: Fuzhou Rockchip Electronics [this same ‘Experiencing the Cloud’ blog, March 13, 2012] where it is stated: Samples of the Rockchip RK30xx platform will be available in March 2012]

                        At present, there are few new products in the market, but many new products will be released in May.

                        As Allwinner A10 solution is so cheap, it is introduced by most of Chinese tablet PCs.

                        The Allwinner A10 PCBA from Shenzhen Crownho sells for about $27.

                        With this PCBA, the cost price of the tablet will be less than $64, such as DA701 [tablet] based on capacitive screen, which sells for about $63.5.


                        INSERT ABOUT THE CURRENT AND FUTURE SoC COMPETITION

                        Competitive SoCs from Chinese vendors that were available in March’12 or came soon after March’12:
                        Amlogic 8726-MX (dual core), 8726-M3; Rockchip RK3066(dual core), RK2918Source: http://www.eeworld.com.cn/xfdz/2012/0725/article_14042.html
                        (A10 $7, A13 $5)image

                        Among those competitors the Rockchip RK3066 (dual core) became a market leader in China on its own as was already shown in the very beginning by the example of Window N90 Dual Core II 2 (16G) leading the dual core market in China:

                        No surprise therefore that this is also a kind of leading product on the global market as shown by Merimobiles:
                        List Price: $399.99 Your Price: $214.99 (with shipping)

                        First Review – Window N90 Dual Core II 2 – RK3066 IPS – Purchase at: Merimobiles.com [MrTasselhof YouTube channel, May 24, 2012]

                        while the Benchmarks Review – Window N90 Dual Core II 2 – RK3066 IPS – Purchase at: Merimobiles.com [MrTasselhof YouTube channel, May 24, 2012] is:

                        Window N90 II – Dual Core – SlateDroid Forum: – http://www.slatedroid.com/forum/337-window-n90-ii-dual-core/ Window N90 Dual Core II – WiFi Benchmark Results – http://www.slatedroid.com/topic/33590-benchmarks-window-n90-dual-core-ii-wifi&#8230; Window N90 Dual Core II – Internal Components Pictures – http://www.slatedroid.com/topic/33614-window-n90-dual-core-ii-teardown-compon&#8230;

                        and the global dual-core competition represented by Merimobiles as follows:

                        Window N90 Dual Core 1.6GHz RK3066 9.7 Inch Comparison Chart

                        imageNote that for the 1.5GHz Windows N70 (as opposed to the above 1.6GHz version available globally) the AnTuTu v2.4 benchmark on the PConline is on the right (see also: AnTuTu Benchmark):

                        Since a multiple core Cortex ARM based Allwinner SoC will come just after those SoCs (“processors” – as named wrongly) shown in the table above, given the credentials of Allwinner presented in this post I dare to predict that the next-generation in the “A series” SoCs from Allwinner will beat the Rockchip RK3066 (or RK30XX in general) and others. There was just one concrete rumor recently: Ampe Allwinner Cortex-A7 Quad-core Tablet is Coming [ChinaEshops.com, July 12, 2012]

                        Rockchip and AMLogic dual-core tablet come out to snatch the tablet PC market while AllWinner dual-core tablet keeps in silence. Although Allwinner A10 & A13 still hot in the middle-low end market. Rockchip RK3066 and AMLogic AML8726-MX has already listed for two months from the beginning of May. Now these two chip still mainly occupy the china dual-core tablet PC market. Freescale’s quad-core tablet PCs begin to launch, even Tegra3 quad-core.  Obviously, allwinner may it is late for launch dual-core, but it doesn’t mean that Allwinner will give up dual-core tablet.  Allwinner will launch Quad-core chips in August. Latest news report that AMPE will launch a new 10.1 Inch IPS Tablet PC equipped with allwinner quad-core processor.
                        According to latest report the allwinner quad-core is using ARM Cortex-A7 structure. …
                        max says: August 8, 2012 at 8:43 pm
                        any news on this.
                        chinaeshops says: August 31, 2012 at 5:11 pm
                        Sorry, it is coming soon
                        .

                        As a matter of fact the Cortex-A7 was meant to be a companion ship for the Cortex-A15, all targeted for 28nm TSMC technology which is in extremely tighty supply at least till the end of the year. On the Cortex-A7 Processor—Related Products page we can find (among other things) that:

                        Physical IP

                        ARM Physical IP Platforms deliver process optimized IP, for best-in-class implementations of the Cortex-A7 processor at 40nm and below. A set of high performance Processor Optimization Packs (POPs) containing advanced ARM Physical IP for 28nm technologies to enable rapid development of leadership physical implementation supports the Cortex-A7 processor. ARM is also working early to assure a roadmap to 20nm optimizations. Optimization packs support ARM’s strategy of offering specifically targeted Physical IP to enable Partners to achieve tuned implementations of ARM cores. ARM is uniquely able to design the optimization packs in parallel with the Cortex-A7 MPCore processor architecture, enabling the processor and physical IP combination to deliver workstation class performance in a mobile power envelope while facilitating rapid time-to-market.

                        But according to the later ARM Expands Processor Optimization Pack Solutions for TSMC 40nm and 28nm Process Variants [ARM press release, April 16, 2012] Cortex-A7 PoP became available for both “TSMC 40LP” and “TSMC 40 LP high speed options” type of process technologies (where LP stands for “Low Power”). This practically means that Allwinner can indeed deliver by this time its next-gen SoC at 40nm.

                        Breaking news:

                        1. Quad-core tablets large chaos department: Allwinner quad-wide prototype will debut in November [Bolopad.com, Oct 3, 2012]

                        Before beginning I have to say to you: “I’m sorry”. Because last week we happily told everyone interested in quad-core prototype that it appeared in September, and it is not far from the days of mass production. But yesterday your editor suddenly received a mysterious call to be informed that the Allwinner quad-core prototype can’t come in September, it is estimated to be out in November to meet with you. I really wanted OOXX to be cursed to death (thought better of course).

                        2. Exclusive: Allwinner quad-core processors code-named A15X coming soon [Bolopad.com, Sept 18, 2012]

                        All right, now that the product finally appeared, we at Bolopad are also excited and highly interested in the quad-core chip code-named A15X (don’t get me wrong, this A15X has nothing to do with Apple A15 [rather Cortex A15 wrongly percieved by many to be in the A6 SoC of the iPhone 5]). Now the related PCBA layout began to take shape, the chip samples came out and so on. Last reportedly bounced because the Allwinner quad-core is dependent on [Cortex] A7 architecture build, but as 40nm and 32nm was short of the desired effect, the 28nm tapeout eventually came in to achieve the desired results.

                        END OF THE INSERT ABOUT THE CURRENT AND FUTURE SoC COMPETITION


                        NOW BACK TO THE CADENCE OF
                        ALLWINNER A10-RELATED EVENTS & INFORMATION:

                        An even bigger market push started when Allwinner A10 with the Android 4.0.3 Software Development Kit was officially launched on March 10, 2012. From the press release:

                        TSMC’s 55 nanometer “half generation” derivative of the 65-nanometer process technology directly miniatures 90%, including input/output and analog circuits, for customer provides competitive advantage with single die cost significantly reduced, while can also save power consumption by 8% at the same speed of operation.

                        As it was reported later in Taiwan: Allwinner Technology Introduces New SoC Platform on TSMC 55nm Process [CENS, March 29, 2012]

                        Allwinner Technology Co., Ltd., a leading supplier of high-definition media semiconductor solutions headquartered in Shanghai [Zhuhai, as the contact address is: Block 1 Software Park, Zhuhai City, Guangdong Province, B6, four], recently released a new system-on-chip (SoC) platform based on Taiwan Semiconductor Manufacturing Co.’s (TSMC’s) 55nm process technology.
                        The platform, codenamed A10, employs advanced SoC design technology to integrate central processing unit, graphic processing unit, high-definition multi-frame video engine, 3D multi-screen engine, and high-speed video interface module on a chip.
                        Equipped with Allwinner’s Android 4.0.3 Software Development Kit, A10 consumes fewer energy to achieve higher computing efficiency on mobile devices.
                        Using TSMC’s 55nm process technology, A10 is able to deliver quality dynamic voltage frequency scaling (DVFS) performance and brand new video management capability on mobile computing devices, and extend battery lifespan of the devices.
                        TSMC’s 55nm process shrinks geometry of integrated circuits, including I/O, on chips by 90% as compared with chips with 65nm process, considerably cutting down cost of every single chip and saving electricity on a chip by 8% relative to competing chips.
                        Allwinner General Manager Zhang Jianghui pointed out that TSMC has been a reliable partner supporting Allwinner in product production, quality and lead time.

                        Allwinner Technology-A10 [product page, April 13, 2012]    The full Jifh A10 chip

                        In A10 Allwinner used 55nm technology, the integrated chip has four times full HD [i.e. the 2160p “Quad HD”] video decoding technology, smart power management system CoolFlex, HD multi-screen display processing and output, efficient and high-speed system architecture, mixed analog-digital high-speed signal design and integration of advanced technology, and integrated, smart power balance, and more items of leading technology. A10 is mainly used in tablet PCs, high-definition players, smart phones, network set-top boxes, smart TV machines.
                        With A10, Allwinner Technology will drive SoC into a brand new era of connected Smart HD which can enhance the application of connected HD SoC as well as user experience of electronic multimedia products. A10 is offering MULTI-CHANNEL decoding and 1080p encoding, MULTI-CHANNEL display with independently developed advanced frame, as well as MULTI-CHANNEL Analog TV Decoder Interfaces. What’s more, power consumption can be much lower than its competitors during 1080p decoding process.
                        Features
                        • VPU
                          HD Video Decoding (Super HD 2160P/3D Film)
                          – Support all popular video formats, including VP8, AVS, H. 264 MVC, VC-1, MPEG-1/2/4, …
                          HD Video Encoding (H.264 High Profile) [datasheet: 1080p@60fps]
                          – Support encoding in H.264 format
                          [datasheet: 720p@100fps]
                        • Rich Connectivity
                          – USB2.0 Port
                          – CSI, TS
                          – SD Card3.0
                          10/100 Ethernet controller
                          CAN Bus, Built-in SATA2.0 Interface
                          I2S, SPDIF and AC97 audio interfaces
                          PS2 , SPI , TWI and UART
                        • DPU
                          MULTI-CHANNEL HD displays
                          Built-in HDMI
                          – YPbPr, CVBS, VGA
                          – LCD interfaces: CPU, RGB, LVDS up to Full HD
                        • Boot Devices
                          – NAND FLASH
                          – SPI NOR FLASH
                          – SD Card
                          – USB

                        • Powerful Acceleration
                          – Graphic( 2D/3D)
                          – VPU(Super HD)
                          – APU
                          – E-reader

                        Benefits
                          • High-performance processing and multimedia capabilities
                          • Outstanding Super HD 2160p/3D Film video decoder makes bunds of creative application possible
                          • High level of integration enables you to launch products in less time, with less effort and at a lower total system cost
                          • Further development Kits, including OS BSP( Android2.3.4, Linux2.6,WinCE6.0)
                          Typical Application

                          Pad
                          Integrated Smart TV
                          Internet Player
                          Vehicle Multimedia Center
                          HDMI Dongle
                          Projector

                          2160p [Wikipedia, excerpted on Sept 18, 2012]

                          2160p is the shorthand name for 4K UHDTV, a video mode planned to appear in future HDTV products.[1] It has a resolution of 3840×2160 (8.3 megapixels in the 16:9 aspect ratio) and is one of the levels of Ultra-high-definition television.[2][3][4][5] The number 2160 stands for 2,160 lines of vertical display resolution, while the letter p stands for progressive scan or non-interlaced. In a progressive image, the lines of resolution of the image go from the top of the screen to the bottom.
                          2160p is also called “Quad HD” since it displays four times the number of pixels of the highest HDTV standard resolution, 1080p (a standard which is also known as “Full HD“). The only planned higher definition format for television is 8K UHDTV.
                          Phillips has made a 3D Quad HDTV with a native resolution of 2160p.[6]
                          In June 2012, Toshiba launched the world’s first 3D TV without glasses with 9 parallax images which passed through special lenticular lenses to deliver 3D effect with glasses-free on a 55″ Toshiba Regza RZ1 Quad Full HD TV, 3840x2160p resolution.[7] Due to delivered 9 parallax images at the same time, so the 3D image will only be seen as HD 720p (1280×720) —> 3840×2160 = 9x1280x720.
                          Sony plans Quad HD TV to launch between 2012 and 2020. Holographic Versatile Discs and Blu-ray Disc may be used for 2160p video, since it theoretically has a storage capacity of up to 10 Terabytes.[citation needed]

                          The AllWinner A10 System on Chip Specifications [the alternative allwinner.com product page, July 20, 2012]

                          Overview

                          Using 55nm technology, Allwinner Technology’s A10 SoC chip integrates full HD video decoding technology, multi-screen display processing, various analog-digital I/O interfaces, and a high-speed efficient ARM core with intelligent power management. The A10 is used in a number of consumer products such as tablet PCs, high-definition players, smart phones, network set-top boxes and mobile media hubs but with the availability of excellent development tools, the A10 is positioned to expand that list.

                          Key Features

                          VPU
                          HD Video Decoding (Super HD 2160P/3D Film)
                          Support all popular video formats, including VP8, AVS, H. 264 MVC ,VC-1, MPEG-1, 2,4, …
                          HD Video Encoding (H.264 High Profile)
                          Support encoding in H.264 format
                          1080p @ 60 fps
                          720p @ 100 fps
                          DPU
                          MULTI-CHANNEL of HD displays
                          Built-in HDMI v1.3/v1.4
                          YPbPr, CVBS,VGA
                          LCD interfaces: CPU, RGB, LVDS up to Full HD
                          Rich Connectivity
                          THREE USB2.0 Port (OTG/HOST/UTI)
                          UTI Digital TV(TS over USB)
                          CSI(2), TS(2)
                          SD Card3.0(4)
                          10/100 Ethernet controller
                          CAN Bus, Built-in SATA2.0 Interface
                          • I2S, SPDIF and AC97 audio interfaces
                          PS2 (2), SPI (4), TWI (3) and UART (8)
                          Boot Devices
                          On board NAND FLASH
                          SPI NOR FLASH
                          SD Card
                          USB
                          Powerful Acceleration
                          Graphic( 2D/3D, Mali400 MP)
                          VPU(Super HD 2160P/3D)
                          APU
                          E-reader
                          Support text in EPUB, PDF, FB2, PDB, CHM, HTML, TXT
                          Support coding format in ANSI/ASCII, UTF-8, UTF16-BE, UTF16-LE, GB2312, EUC-KR, SHIFT-JIS, Windows-1250/1251, Support Chinese, English, French, Italian, Spanish, Dutch, Russian, Japanese, and Korea
                          CPU/GPU
                          ARM Cortex-A8 at 1.2 Ghz without cooling
                          • 32KB I-Cache/32KB D-Cache
                          256KB L2 Cache
                          MALI 400 MP GPU
                          ARM NEON general-purpose SIMD engine
                          Memory
                          DDR3 SDRAM, 32-bit 16G bits Memory Capacity
                          • SLC/MLC/TLC/DDR NAND
                          8 flash chips, ECC 64bits
                          Memory Capacity up to 64GB/chip
                          Security
                          Trustzone Technology and DRM
                          Supports DES, 3DES AES encryption/decryption
                          Support SHA-1, MD5 message digest
                          hardware 64-bit random generator
                          128-bit EFUSE chip ID
                          PMU
                          Flexible built-in power options
                          Intelligent Power Select allocates power safely and transparently among USB, external AC adapter, Li-battery and application loads
                          adaptive and USB-compatible PWM charger
                          Benefits
                          • Very high performance processing and multimedia capabilities
                          • Hardware acceleration enables very low power consumption for HD video and graphics
                          • High level of integration makes you can launch product in less time, with less effort and at a lower total system cost
                          • Optimized Standard Operation Procedure (SOP) creates high First Pass Yield (FPY) in mass production
                          • OS Board Support Packages for Android, Linux and WinCE

                          AllWinner A10 Datasheet V1.0

                          NEW Allwinner Technology-A10s [product page, Sept 26, 2012]

                          全志科技 A10s 芯片

                          Allwinner Tech has expanded its processor lineup to include a new ARM Cortex-A8 chip A10s which is even more competitive for HDMI Dongle with higher performance (ManyCore Structure), better compatibility of Streaming Video Protocol/local multimedia formats, lower power consumption, and lower total system cost. As the brains of Android 4.0.4, A10s makes multitasking smoother, apps loading more quickly, and anything you use responds instantly. What’s more important, A10s is available in BGA336 package with Audio Codec, and HDMI integrated.
                          Features
                          • CPU / GPU
                            – ARM Cortex-A8 Core
                            – 32KB D-Cache / 32KB I-Cache
                            – 256KB L2 Cache
                            – Mali-400 3-D Engine
                          • VPU
                            – HD Video Decoding
                            – 1920 * 1080 @ 30fps
                            – Support VP8/6, H.264/H.263, WMV9/VC-1, WMV7/8, MPEG-4/2/1, Xvid, etc
                            – HD Video Encoding
                            – Support encoding in H.264 format up to 1920 * 1080 @ 30fps
                          • HDMI
                            HDMI 1.4
                            1080P Output
                          • Boot Devices
                            – NAND Flash
                            – SPI Nor Flash
                            – SD Card
                            – USB
                          • Ultra-low System Power Consumption
                            15 ~ 20% lower than competitors
                          • DPU
                            – LCD Interfaces: CPU, RGB
                          • Memory
                            – DDR2/DDR3: Up to 533MHz
                            – 16 bits/32 bits Data Bus
                            – MLC / TLC / SLC / EF-NAND
                            – ECC 64-bit
                            – Support NAND of 4xnm, 3xnm, 2xnm …
                            – Support NADN of Samsung, Toshiba, Hynix …
                          • Peripherals
                            – USB2.0 OTG, USB2.0 HOST (OHCI / EHCI)
                            – SD Card V.3.0, eMMC V.4.2
                            – SPI, TWI and UART
                            TS Port
                            EMAC
                            – CSI
                            IIS
                          • Audio Codec
                            – integrated Audio Codec
                            – MIC/FM/LINEIN Input
                          • Powerful Acceleration
                            – Graphic (3D, Mali400 MP)
                            – VPU (1080P)
                            – APU
                          • Package
                            BGA336, 14mm*14mm
                          Benefits
                          Optimum multimedia and processing abilities
                          Lower power consumption of HD videos and graphics due to hardware acceleration
                          Lower power consumption of HD videos and graphics due to hardware acceleration
                          Total solution, including OS BSP (Android 4.0.4 UP)
                          Typical application

                          HDMI Dongle
                          Homlet (Android Box)

                          And A10s is definitely coming to the market as per this [Sept, 21, 2012] discussion thread

                          Today I found a seller on on a website selling new model of Android TV stick, it claims adopting new A10S chip & support DLNA function that is just what I want, is that a good deal?

                          Allwinner Technology-A13 [product page, April 13, 2012]

                          The full Jifh A13 chip

                          Allwinner Technology has expanded its processor lineup to include a new ARM Cortex-A8 chip A13 which is even more competitive for Android tablets with higher performance (ManyCore Lite), lower power consumption, and lower total system cost. As the brains of Android 4.0. 3, A13 makes multitasking smoother, apps loading more quickly, and anything you touch responds instantly. What’s more important, A13 is available in eLQFP176 package with Audio Codec, and 2 Points R-TP integrated.

                          Features

                          • CPU / GPU
                            – ARM Cortex-A8 Core
                            – 32KB D-Cache / 32KB I-Cache
                            – 256KB L2 Cache
                            – Mali-400 3-D Engine
                          • VPU
                            – HD Video Decoding
                            – 1920 * 1080 @ 30fps
                            – Support H.264, H.263, VC1, Mpeg1/2/4, Divx 3/4/5/6, Xvid, VP6 / 8, AVS etc
                            – HD Video Encoding
                            – Support encoding in H.264 format up to 1920 * 1080 @ 30fps

                          • Boot Devices
                            – NAND Flash
                            – SPI Nor Flash
                            – SD Card
                            – USB
                          • Ultra-low System Power Consumption
                            15 ~ 20% lower than competitors
                            – Smart Backlight: auto adjust backlight acc. to the image display

                          • DPU
                            – LCD Interfaces: CPU, RGB
                          • Memory
                            – DDR2/DDR3: Up to 533MHz
                            – 16 bits Data Bus
                            Memory capacity up to 512MB
                            – MLC / TLC / SLC / EF-NAND
                            – 2 flash chips, ECC 64-bit
                            – Support NAND of 5xnm, 4xnm, 3xnm, 2xnm …
                            – Support NADN of Samsung, Toshiba, Hynix …
                          • Peripherals
                            – USB2.0 OTG, USB2.0 HOST (OHCI / EHCI)
                            – SD Card V.3.0, eMMC V.4.2
                            – SPI, TWI and UART
                            – integrated Audio Codec
                            – CSI
                          • R-TP Controller
                            – 4-wire resistive TP interface
                            2 points and gesture detection
                          • Powerful Acceleration
                            – Graphic (3D, Mali400 MP)
                            – VPU (1080P)
                            – APU
                            E-Reader
                          • Package
                            eLQFP176

                          Benefits
                            • Optimum multimedia and processing abilities
                            • Lower power consumption of HD videos and graphics due to hardware acceleration
                            • Much faster, easier and cost efficient product launch due to the high integration
                            • Further development kits, including OS BSP (Android 4.0.3 UP)
                            Typical application

                            Pad
                            E-BOOK

                            Note that Allwinner is operating in a world-class environment as you could easily see from the below picture of their office building taken from their brief intro page [April 13, 2012]:

                            Jifh Southern Software Park Zhuhai

                            全志科技 Allwinner Technology has been committed to the IC design industry, is one of a handful of domestic enterprise engaged in system-level ultra-large-scale mixed analog-digital chip design the SoC and intelligent power management. Our main products are intelligent terminal application processor chip, smart power management chip.
                            With excellent R & D team and technical strength, the company’s products to achieve industry-leading levels of high-definition video codec, a high level of integration, low power consumption, rapid market expansion, has become a domestic Tablet PC application processor chip, high-definition player application processor chip as well as one of the mainstream supplier of intelligent power management chip market, has a clear lead.

                            New content replacing the above on Sept 26, 2012:

                            Allwinner Technology, one of the domestic companies in integrated circuit design industry, is dedicated to the design of mixed analog-digital VLSI SoC and smart power management SoC.

                            Depending on its excellent R&D capability, Allwinner Technology has been led the industry in terms of its HD video codec, high integration and low power consumption, etc. As a result, it is gaining more market share, and has become one of the domestic mainstream suppliers of tablet processors, HD player processors, as well as smart power management SoC.

                            Note therefore that Allwinner’s roots are in the video (multimedia) related chips as also shown by their latest pre-A10 SoC product (introduced in August’11) for that market, the F1C100 (another SoC, the more focussed F20 introduced in August’11 for portable video players, living room computers etc. has even better, 1080p full HD decode technology; as well as the very latest F10 introduced in April’12 for HD players and lower end –relative to A10—car multimedia), described on its product page as:
                            With advanced independently developed video decoding technique, F1C100 becomes the ONLY processor in the market that can decode video in all formats based on ONLY 4MB NOR FLASH and 16MB SDRAM. In the mass production of final products, NOR bootloader burning is much easier and faster compared with NAND FLAHS ‘. Last but not least, F1C100 supports two-point touch which can improve the using experience of end-users.

                            New F10 content replacing the above on Sept 26, 2012:

                            The F10 is an advanced HD video CODEC processor with unparalleled competitive edges in integration, video compatibility and cost efficiency, which have been widely verified by mass production of dozens of applications. End-users are overwhelmed by its capability to serve banquet for the eyes.

                            Typical Application

                            HD PMP
                            Student Computer
                            HD Media Player
                            Car MP5
                            HD AD Player

                            F1C100’s datasheet [initial version, March 31, 2011] is providing the following, more precise description:

                            image

                            and for the video engine of their own design in particular:

                            image

                            image

                            With this intellectual property they were able to upscale to a market leading 2160p functionality in the A10 (vs. the 720p in the above F1C100) while using a less upscaled IP for the 1080p in A13. So they can even have a scaleable video engine IP of their own.

                            In the A10 datasheet or here [initial version, Aug 22, 2011] the following description is giving some hint regarding the company’s strategic intent to remain in the forefront of video acceleration technology:

                            image

                            It is quite notable that neither on the product page nor in this datasheet Allwinner is giving further information about their video engine. Even in the functional block diagram of datasheet the video engine (VE) is simple put into a central box with Cartex-A8 and the Mali GPU:

                            image

                            The only available information is the CedarX wiki page [July 14 – Sept 16, 2012] on linux-sunxi wiki:

                            CedarX is Allwinner’s multimedia decoding technology. It is composed of several parts, including:

                              1. A hardware video decoding unit
                              2. Proprietary libraries to communicate with the hardware unit
                              3. Glue code to use those libraries on an actual system with video playback capabilities (e.g. Android)
                              Benefits
                                • Efficient use of system resources when decoding multimedia.
                                • Allows small ARM systems to playback high resolution/bitrate multimedia content, which wouldn’t be possible using software-only decoding.
                                    Disadvantages
                                      • The proprietary libraries have no clear usage license.
                                      • The android glue code is implemented as a “media player” (parallel to stagefright) instead of as OMX components.
                                      • This media player has limitations when it comes to playing back content pointed to by Android URIs and some web-based content.
                                      • There is no glue code for any other multimedia frameworks on GNU/Linux systems. The use of OMX would’ve rendered this a non-issue, with existing projects like GstOpenMAX.
                                          Integration
                                          Reverse Engineering
                                          On June 15 2012 Iain Bullard started reverse engineering the proprietary libraries.
                                          Some leading tablets (single core) as of April, 2012  per Merimobiles (with an office in Canada)
                                          (Haipad I7 is now $99, the price of Ployer Momo9 is unchanged, see: HAIPAD I7 IPS 1024*600 Multitouch Screen with Android 4.0 Dual Camera 1080P HDMI [Merimobiles.com, Sept 10, 2012],  Haipad’s latest 7-inch ICS tablet Haipad i7 gets FCC clearance [Merimobiles blog, March 6, 2012], from Shenzhen Haina Electronic Co., Ltd “founded in 2003 as a high-tech company specializing in laptops and other digital mobile devices”)

                                          comparison-chart-haipad-i7.png

                                          The Allwinner A10 based tablets came to the global market from quite a number of vendors as shown by the following table (=50) compiled from two related threads from SlateDroid.com (note that global arrival of A10-based product started in Jan’12):

                                          Comprehensive List of Allwinner A1X/A10 devices on SlateDroid.com, as of April 18, 2012 (first version: Feb 26, 2012)
                                          A10 Tablets with less than 1GB memory („1st generation”):
                                          AllDro Speed
                                          Ainol: Novo 7 Advanced, Novo 7 Advanced II
                                          OEM Novo 7 Advanced
                                          Allview AllDro Speed
                                          Audemars Piguet PC741 (w/ bluetooth)
                                          Aura LY-F1
                                          BRONCHO A710
                                          Bmorn: V9 plus, V11
                                          Dropad A8HD
                                          Eken: MB1001, T01A, t10a
                                          Eneoze 7 inch or 10 inch
                                          Hyundai A7
                                          ICOO: D70W, D90W
                                          LY-F1 (Netpad A10, TPGA-7AWN, A710)
                                          Leoxsys Leopad i7-1500
                                          Moonpad2
                                          Onda: VX610W, Vi20W, Vi10 deluxe edition, Vi20W deluxe (the original Vi20W is RK2918-based), Vi30W deluxe, Vx610w, VX580W Deluxe Edition (5” tablet)
                                          Ployer: Momo8 (8″ screen 800×600), Momo9 (C, Enhanced, etc), Momo15 (10” screen)
                                          Rexing V7
                                          Sanei N70 N71 N72 N73 N80 N81 (N7x is 7” and N8x is 8”)
                                          Saycool A710
                                          Scroll Excel
                                          Sigotech V700 (resistive touch)
                                          Skypad Alpha 2
                                          Teclast: P76 Resistive, P76ti
                                          Tracer OVO
                                          WoPad A7 (upcoming)
                                          „2nd generation” A10 tablets (with 1 GB or more):
                                          Ainol: Novo Elf, Novo Aurora
                                          Bmorn V11 Extreme
                                          Ampe A90
                                          Gemei: G9, Gemei G2
                                          Eken A90
                                          Ployer Momo11 Bird
                                          newman P81
                                          Onda: Vi40 (8g, 16g, 32g/ 10” screen), Vi10 elite, 1GB Ram, 8 GB Flash, 1024×600 LCD
                                          Teclast: P85 (8″ screen), A10
                                          Later/OTHER devices (not verified, just put on the thread, THOSE WITH LINKS are from the Adding new Allwinner A10 CPU Devices THREAD [Jan 19-Sept 17, 2012]):
                                          Ampe: A80, A85, A10
                                          Andtai FG-A97
                                          Benyi M8
                                          Coby Kryos 7042
                                          Gemei G3
                                          Haipad i7
                                          HKC M701
                                          ICOO: D50 deluxe edition, D80W
                                          iNote: V4, A8, A8-2, A-8-3
                                          Kliver MB9703
                                          MyAudio 908A
                                          Naviatec MD710
                                          Onda Vi40 Flagship
                                          Polaroid PMID701C
                                          Shimaro M5
                                          Sinvigo M7
                                          Sysbay s-mp99
                                          Treq A10C
                                          Trio Stealth Pro 7
                                          VISTURE 3
                                          Zonge M90
                                          Yarvik Xerios TAB464
                                          Xtouch X716
                                          Woxter Tablet PC 97

                                          Note that there were only couple of Chinese vendors with multiple Allwinner A10-based tablet offerings, namely: Ainol, Ampe, Bmorn, Eken, Gemei, ICOO, iNote, Onda, Ployer, Sanei, Teclast (i.e. just 11 out of 50).

                                          There is a much shorter and later started list of Allwinner A13-based tablets on SlateDroid.com, see: List of Allwinner A13 CPU Devices [from Aug 1, 2012]

                                          Then from April to August there were the following events unfolding in China as per Micdigi reports:

                                          A13 is cheaper than A10 with only 512M memory and 800×600 resolution but without Bluetooth and HDMI. Allwinner A13 can be only used for 7-inch tablet PC and 8-inch tablet PC, it does not support 10-inch tablet PC.

                                          Contrasted with VIA8850 and RK2906, A13 with low cost will have strong market competitive capability. The price of 7-inch tablet with A13 and capacitive screen will be less than $48 in May.

                                          Rockchip has released RK2906 chip to defeat Allwinner A10. The chip is not different from RK2918 but it can only used for 7-inch tablet and 8-inch tablet.

                                          The tablet based on RK2906 comes from Shenzhen DavidMid.

                                          The two sample tablet PCs from SMIT are based on slot-in screen and flat screen. The price of the slot-in screen is less $8 than the price of the flat screen.  

                                          The price of the PCBA sells for about $19, the tablet PC based on A13 solution, slot-in screen and capacitive control sells for about $47.

                                          … The slot-in screen does not have external glass and interaction sets that it is cheaper. But the experience is not different from the flat screen. …

                                          Remark: Embedded Touchscreen Technology and Market Analysis [Displaybank, March, 2010]

                                          The embedded touch technology is divided into In-cell and On-cell technologies. Conventionally, only the In-cell technology which was exclusively developed by panel makers drew attention, but it entailed issues in technology and cost regarding a mass production by satisfying the touch function demanded by customers and market. The on-cell technology lies at a grafting point between the conventional touch industry infra and LCD panel industry that it tends to mutually supplement the two industries in terms of performance and function.
                                          The embedded touch technology which includes above On-cell and In-cell technologies is ideal since it reduces thickness and weight as well as it overcomes shortcomings of the conventional add-on type: reduced transmittance, lowered readability due to contrast ratio decrease, and thick bezel width. Based on above advantages, related makers continue with the technology development. The market is yet insignificant, but it is expected to show high growth rate comparable to the Touch market’s growth.

                                          Latest info:
                                          On-cell Touch Screen Panel Slims Down Mobile Displays [Electronic Design, June 10, 2012]
                                          TOUCH TECHNOLOGY IN SMARTPHONES EXPLAINED [FlatpanelsHD, Sept 19, 2012]

                                          VIA8850 based on Cortex-A9 core is powerful than VIA8650. VIA8650 is so worse that some famous manufactures in China have not made their tablet PCs to introduce VIA8650 chip, such as Ramos, Window and TOBE.

                                          VIA8850 will come with cheap price and powerful performance. It will be mainly used for SuperPad tablet PCs. It is said that VIA will release another chip for big-brand companies.

                                          Actually it is same with VIA8850, but it has different name.

                                          As VIA8650 chip is so worse, Infotmic [X200] 7-inch chip, Allwinner A10, Allwinner A13 have got most of the market share.

                                          Could VIA8850 chip get more market share in this year?

                                          1.  There are so many Allwinner A10 tablet PCs that the competition is so fierce. Some manufactures do not make any money. They will not continue to release A10 tablet PCs. Maybe they will release VIA8850 tablet PCs.

                                          2.  VIA8850 based on Cortex-A9 core is [more] powerful than Allwinner A10 based on A8 core and A13 based on A8 core. With the resource of HTC, the system optimization of the VIA8850 tablet PC is excellent. It not only has powerful performance but also has cheap price.

                                          3. VIA is a famous chip company in the world. They have good marketing channel.

                                          Allwinner has released the A10 chip for about half a year. They have earned so much money including the investment cost and the profit.

                                          VIA must do their best to earn the investment cost. The cost of VIA8850 is [more] expensive than Allwinner A13.

                                          Allwinner has advantage in the price war.

                                          Configurations: Infotmic solution, 256M memory, 4G storage, 7-inch resistive screen with 800×480 resolution, front facing camera, Android2.3 OS.

                                          Infotmic X200 series are based on ARM11, 1GHz frequency, supports 1080P video decode.

                                          Recent examples of tablets:

                                          $39 AllWinner A13 Tablet (100K bulk) by Hott at IFA 2012 [Charbax YouTube channel, Sept 2, 2012]

                                          Hott presents one of their latest cheapest tablet to manufacture and they also have a new cheap bluetooth and cabled speaker.

                                          $46 AllWinner A13 by OMG at IFA 2012 [Charbax YouTube channel, Sept 2, 2012]

                                          I show a range of the latest tablets by OMG of Shenzhen China. $46-$48 (if buying 500) AllWinner A13, $55 VIA Cortex-A9 [VIA/WM8850], $110 AllWinner A10 with 3G modem (likely Huawei).

                                          $99 3G Allwinner A10 Eken G70 at IFA 2012 [Charbax YouTube channel, Sept 1, 2012]

                                          Here’s a sub-$100 (in bulk) 3G-connected Allwinner A10 7″ capacitive tablet.

                                          And here is an earlier $55 AllWinner Boxchip A13 Tablet Factory Tour [Charbax YouTube channel, May 27, 2012] to understand why and how the workforce is able to assembe the tablets at such a cheap price:

                                          See how they are assembling the $55 (soon $49) AllWinner Boxchip A13 7″ Capacitive tablet. This Shenzhen factory assembly line cranks out about 4000 such tablets in a day’s work. If you like this video, you should also watch my Shenzhen Speakers Factory video (http://www.youtube.com/watch?v=3fcmbHMnqbo) that I posted last month. I think that they are treated better than Apple/Foxconn workers, I think they make better money, they have better working conditions (for example they may wear their own clothes), they probably have more flexibility and the work may be less monotonous. Yet, of course I think working conditions can be improved for all Chinese consumer electronics factory workers. My suggestion is that consumers must have the choice to buy “vouchers that go 100% to the workers that made the devices”, for example, decide to pay $5 extra for your tablet, and know that the $5 goes 100% to the factory workers that build it meaning you double their salary (if 50% of all consumers decide to give an average of $5 each per device).

                                          AAPPAA Shenzhen JinPinXing Tablets [Charbax YouTube channel, Sept 2, 2012]

                                          Here they’re showing [on IFA 2012 in Berlin] their PCB and Tablet casing designs. They claim to have the worlds thinnest 9.7″ IPS tablet at 8.9mm.

                                          Some important information mentioned in the video:

                                          MID-971:
                                          – World’s Thinnest 9.7” [IPS] Pad
                                          – Only 8.9 mm
                                          – Built-in 3G (can be also without it)
                                          – WiFi + Bluetooth
                                          VIMICRO??? or Longcheer 2918/3066
                                          – the WiFi only version is US$115-120 depending on quantity

                                          MID-803:
                                          – 8” Pad
                                          – Built-in 3G
                                          – Dual Camera
                                          Rockchip 3066 dual core
                                          – US$172 with 8GB and 3G

                                          ?MID-973?: a 9” tablet with Allwinner A13 is said to cost US$73-74
                                          30K tablets sold per month, can sell upto 50K per month
                                          On their product microsite (see below) the tablets shown currently have the following SoCs and parameters:
                                          Allwinner A10 (Cortex A8@1.5GHz): MID-501 and MID-702 (both 512MB DDR3 and 7” 800×480 with Android 4.0.4)
                                          Allwinner A13 (Cortex A8@1.0GHz): MID-438 (7” 262×480 and Android 4.0.3), MID-703 (7” 800×480 and Android 4.0.4) both with 512MB DDR3
                                          VIMICRO882 (Cortex A8@1.0GHz): MID-706 (512MB DDR3 and 7” 800×480 with Android 4.0)
                                          – all the those are with capacitive touch screens, NAND FLASH 4GB/8GB/16GB / 32GB (optional), AMD graphics acceleration, full support for OpenGL ES2.0 (AMD Z340) and h.264 720P HD 1080i

                                          Jinpin Xing Technology Co., Ltd., Shenzhen – Tablet PC – Products – [as of Sept 18, 2012]
                                          深圳市金品兴科技有限公司 – 平板电脑 – 产品介绍


                                          MID-702


                                          MID-438

                                          MID-971


                                          MID-973


                                          MID-708


                                          MID-706


                                          MID-501


                                          MID-1001


                                          MID-703

                                          AAPPAA –About us [Aug 19, 2011]

                                          AAPPAA, founded in 2005, is an established manufacture of smart digital products with super perfect design in MP3/4/5, Mini Speaker products field. We design and produce super perfect quality products, many of them are original which we ship to wholesale customers all over the world. Given the wide array of geographic regions across which we distribute product, we work closely with our customers and retail partners to ensure the AAPPAA team remains innovative and competitive in a constantly evolving market sector.

                                          AAPPAA’s Success: AAPPAA’s success can be attributed to close collaboration with our global set of customers and partners combined with internal efforts to continually improve our productivity, design creativity and quality management initiatives. Through the years, AAPPAA has experienced tremendous growth while also enhancing the personal lives of our customers, and the well being of our loyal employee base. AAPPAA employs 60+ people with an average employment tenure of nearly 3 years a fantastic achievement amidst China’s explosive growth that has offered a continuous list of new opportunities of a young, energetic workers.
                                          AAPPAA’s Manufacturing Capacity: AAPPAA’s 1500 square meters of manufacturing space and 60+ workers are based in Shenzhen China. We operate multiple production lines with SMT machines, hot plastic packing machines as well as high & low temperature age and vibration testing units. Production capacity exceeds 110,000 units per month. In addition, AAPPAA’s products are CE, FCC, RoHS certified.
                                          Address: 5F, Nankeng No.2 Industrial Park Abuilding, Bantian Town, Longgang District, ShenZhen City 518129, China
                                          Tel : +86-755-83579180    Fax:+86-755-83579189    E-mail: sales@aappaa.com

                                          5. The wireless display and 2160p (“Quad HD”/4K) outlook

                                          Wi-Fi CERTIFIED Miracast™: Your Content – Now Showing on Screens Everywhere [WiFiAlliance YouTube channel, Sept 18, 2012]

                                          Wi-Fi CERTIFIED Miracast™ is a groundbreaking solution for seamlessly displaying video between devices, without cables or a network connection. Users can do things like view pictures from a smartphone on a big screen television, share a laptop screen with the conference room projector in real-time, and watch live programs from a home cable box on a tablet. Miracast connections are formed using Wi-Fi CERTIFIED Wi-Fi Direct™, so access to a Wi-Fi® network is not needed — the ability to connect is inside Miracast-certified devices. Miracast is an industry-wide solution, so the technology works well across devices, regardless of brand. Connections are easy to set up and use since the devices choose the appropriate settings automatically. Miracast supports premium content—like Blu-ray feature films, live television shows and sports, or any other copy-protected premium content—allowing you to watch what you want, where you want.

                                          What that means practically is currently best shown by a non-Chinese tablet SoC vendor:
                                          NVIDIA Tegra 3 Enhances Miracast Wireless Display [nvidia YouTube channel, July 26, 2012]

                                          Watch how NVIDIA’s Tegra 3 can enhance the experience of the WiFi Alliance’s new open standard for wireless display called Miracast. From the same organization that established the ubiquitous Wi-Fi standard, comes the ability to wirelessly beam the display contents of your mobile phone or tablet directly to the large HDTV screen in your home without a wireless router. See how the performance of Tegra 3 can deliver the ultimate Miracast experience by bringing super clear HD videos and console quality game play with Tegra Zone games

                                          What you see here is the Hardware + software optimization done by NVIDIA for Miracast. Since Allwinner is using its own video processing unit (VPU) which is said to be the fastest relative to the video engines of its Chinese SoC competitors (e.g. Amlogic) we can expect a similar to the NVIDIA’s kind of software optimization for the Allwinner VPU. (Take also into consideration “the company’s strategic intent to remain in the forefront of video acceleration technology” as it was proven in the “Allwinner Advantage” section before.)

                                          In other respect a separate 3d party WiFi chip is coming into the play, and there is already quite a number of those chips already to be designated Wi-Fi CERTIFIED Miracast:

                                          Easy-to-use, multi-vendor wireless display has arrived: Wi-Fi Alliance® launches Wi-Fi CERTIFIED Miracast™ [Wi-Fi Alliance press release, Sept 19, 2012]

                                          Wi-Fi Alliance® today announced the launch of the Wi-Fi CERTIFIED Miracastcertification program. Miracast devices provide simplified discovery and setup, so users can quickly transmit video content from one device to another. Industry analysts predict annual shipments of Miracast-certified devices to exceed one billion units within the next four years.
                                          Miracast users can do things like view pictures from a smartphone on a big screen television, share a laptop screen with the conference room projector in real-time, and watch live programs from a home cable box on a tablet. Miracast connections are formed using Wi-Fi CERTIFIED Wi-Fi Direct, so access to a Wi-Fi® network is not needed – the ability to connect is inside Miracast-certified devices.
                                          “Wi-Fi users around the world want to experience multimedia on the device of their choice – no matter what brand – and Miracast is the breakthrough they have been waiting for,” said Edgar Figueroa, CEO of Wi-Fi Alliance. “We have been delighted with the level of enthusiasm and support among our member companies for this new offering.”
                                          Miracast supports protected content streaming, enabling devices to stream feature films and other copy-protected materials. To protect premium content, Miracast uses a wireless adaptation of the trusted content protection mechanisms widely used today for cabled interfaces like HDMI® and DisplayPort. In addition, the latest WPA2™ security protections are automatically enabled on every device, making the transport of all multimedia content private.
                                          “Miracast builds on Wi-Fi Direct with a compelling application,” said Brian O’Rourke from IHS iSuppli Research. “This is a big step forward in a market migration from single-vendor display solutions, into an offering from a wide array of vendors. With more than 1.5 billion Miracast devices expected to ship in 2016, the program is poised to have broad adoption.”
                                          The technology underlying Miracast was developed in Wi-Fi Alliance by a diverse group of mobile and consumer electronics manufacturers and silicon vendors to standardize methods for simplified video sharing. Based on the Wi-Fi Alliance Display Specification, products bearing the Miracast brand interoperate across vendors, making it easy to enjoy video on screens throughout the home or office.
                                          The first products to be designated Wi-Fi CERTIFIED Miracast, and which form the test suite for the certification program, are:
                                            • Broadcom Dualband 11n WiFi
                                            • Intel® WiDi
                                            • Marvell Avastar USB-8782 802.11n 1×1 Dual-band Reference Design
                                            • MediaTek a/b/g/n Dualband Mobile Phone Client, MT662X_v1 and DTV Sink, MV0690
                                            • Ralink 802.11n Wireless Adapter, RT3592
                                            • Realtek Dual-band 2×2 RTL8192DE HM92D01 PCIe Half Mini Card and RTD1185 RealShare Smart Display Adapter
                                              The first consumer products certified since testing opened to vendors include the LG Optimus G smartphone, Samsung Galaxy S III smartphone and Samsung Echo-P Series TV.
                                              More information, including a list of Wi-Fi CERTIFIED Miracast products, the Wi-Fi Alliance Display technical specification, white paper, and more is available at www.wi-fi.org/miracast.  
                                              Broad industry support for Wi-Fi CERTIFIED Miracast
                                              “As a Wi-Fi market leader, Broadcom is honored to be one of the primary certification solutions for the Wi-Fi Alliance Miracast™ program and is committed to driving new Wi-Fi standards,” said Dino Bekis, Senior Director, Wireless Connectivity Combo Group at Broadcom. “The standardization of this technology will enable consumers to easily and seamlessly share content across the ever-growing landscape of connected devices.”
                                              “Users clearly expect that they should be able to move their content and applications freely at home, at work, in the classroom, and on the go,” said Joe Van De Water, Director of Consumer Product Marketing at Intel. “Intel has seen tremendous user enthusiasm for Intel® WiDi, and as a member of the Wi-Fi Alliance, we support enabling this usage more broadly and are excited to announce WiDi as one of the first Wi-Fi CERTIFIED Miracast solutions.’’
                                              “We celebrate the launch of the Wi-Fi CERTIFIED Miracast program,” said Hyunghoon Oh, Head of LG Mobile Communication R&D Division. “Miracast brings an exciting advancement in the way devices deliver display applications.”
                                              “The Wi-Fi Alliance’s Miracast certification program will allow for easy sharing of video content, regardless of vendor,” said Bart Giordano, Director, Wireless Marketing at Marvell Semiconductor, Inc. “We have included Miracast in our solutions, and are honored to have been selected for the program’s test bed.”
                                              “The video streaming applications enabled by Wi-Fi CERTIFIED Miracast™ are key to the growth of the Wi-Fi ecosystem encompassing Consumer Electronics, Personal Computing, and Mobile devices.” said Mr. SR Tsai, General Manager of Wireless Connectivity & Networking Business Unit at MediaTek. “We are honored to have our Android mobile platforms, Digital TV, as well as our connectivity solutions for Windows platforms selected for the Miracast test bed.”
                                              “Miracast on NVIDIA Tegra will bridge the distance between mobile devices and high-def TVs, providing customers a rich – and cable-free – multimedia experience,” said Matt Wuebbling, Director of Product Marketing at NVIDIA. “We have embraced Miracast and are working with our OEM partners to bring its amazing possibilities to market.”
                                              “We are happy to have been involved in developing the Miracast program and to be one of the first companies to receive certification,” said Jessy Chen, Vice President and Spokesman at Realtek. “The solution will greatly expand the market for easy-to-use interoperable wireless display connectivity.”
                                              “As a leader in N-screen technology, Samsung has introduced AllShare Cast (based on Miracast), which is incorporated into most of Samsung’s high-end smart mobile devices including the GALAXY S III, GALAXY Note 10.1, and GALAXY Note II, “ said Hankil Yoon, Senior Vice President of Product Strategy Team, Samsung’s Mobile Communication Business. “We will continue to support the program, and plan to offer more Miracast-certified devices to our customers going forward.”
                                              “Sony Mobile is pleased to support the Wi-Fi CERTIFIED Miracast™ certification program. We continuously strive to deliver new exciting user experiences and Miracast™ technology will enhance our ability to offer consumers seamless connectivity to move their content freely between smartphones and other screens,” says Nikolaus Scheurer, Director Marketing Planning for Sony Mobile Communications.
                                              “Miracast will play an important role in enabling true seamless media streaming, gaming and content sharing between mobile screens and large displays,” said Ram Machness, director of marketing, Wireless Connectivity Solutions, Texas Instruments Incorporated. “Our OMAP™ platform, DaVinci™ video processors and WiLink™ connectivity products will offer Miracast-certified source and sink solutions to provide a rich experience for our customers’ end products.”
                                              About the Wi-Fi Alliance®
                                              www.wi-fi.org
                                              The Wi-Fi Alliance is a global non-profit industry association of hundreds of leading companies devoted to seamless connectivity. With technology development, market building, and regulatory programs, the Wi-Fi Alliance has enabled widespread adoption of Wi-Fi worldwide.
                                              The Wi-Fi CERTIFIED™ program was launched in March 2000. It provides a widely-recognized designation of interoperability and quality and it helps to ensure that Wi-Fi-enabled products deliver the best user experience. The Wi-Fi Alliance has completed more than 15,000 product certifications, encouraging the expanded use of Wi-Fi products and services in new and established markets.
                                              Wi-Fi®, Wi-Fi Alliance®, WMM®, Wi-Fi Protected Access® (WPA), the Wi-Fi CERTIFIED logo, the Wi-Fi logo, the Wi-Fi ZONE logo and the Wi-Fi Protected Setup logo are registered trademarks of the Wi-Fi Alliance. Wi-Fi CERTIFIED™, Wi-Fi Direct™, Wi-Fi Protected Setup™, Wi-Fi Multimedia™, WPA2™, Wi-Fi CERTIFIED Passpoint™, Passpoint™, Wi-Fi CERTIFIED Miracast™, Miracast™, Wi-Fi ZONE™ and the Wi-Fi Alliance logo are trademarks of the Wi-Fi Alliance.
                                              All other company and product names mentioned are trademarks and/or registered trademarks of their respective owners.

                                              For Chinese vendors the WiFi-related MediaTek chips are the most accessible and affordable, so I am including the additional MediaTek press release as well:

                                              MediaTek Interlinks Mobile Devices and TVs for Wireless Display MiracastTM Applications [MediaTek press release, Sept 19, 2012]

                                              MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced that its 802.11a/b/g/n Dual-band Mobile Phone Client (MT662X), 802.11n Wireless Adapter (RT3592) and DTV Sink solutions (MV0690) have all been selected as part of the Wi-Fi CERTIFIED MiracastTM test bed. As the benchmark to drive interoperability testing for the newest Wi-Fi program, MediaTek’s Miracast-certified solutions allow mobile devices to wirelessly stream multimedia content, such as video and games, onto big screen DTVs without a connection to an access point.
                                              “We congratulate MediaTek on achieving selection to the Wi-Fi CERTIFIED MiracastTM test bed,” said Wi-Fi Alliance CEO Edgar Figueroa. “MediaTek’s participation in the development of this program has been instrumental in the achievement of industry-wide certification.”
                                              In a typical MiracastTM usage scenario, one device acts as the source (the transmitting device sending out the content) while the other becomes a sink (a receiving device displaying the content). Thanks to the new Wi-Fi test program and MediaTek’s proven technologies, interoperability and user experience of Miracast applications can be guaranteed.
                                              “We are partnering with MediaTek to provide consumers with high-performance, affordable smartphone solutions that incorporate the latest Miracast Wi-Fi display technology for the home and on the go, “ said Dr. Ji-Yang Wang, COO at TCL Communications Technology. “MediaTek’s industry-leading technologies, cross-platform advantages across home and mobile, and ‘hands-on’ approach to design and support, are essential in creating products that helps us deliver a compelling user experience and differentiated offering.”
                                              “The video streaming applications enabled by Wi-Fi CERTIFIED MiracastTM are key to the growth of the Wi-Fi ecosystem encompassing Consumer Electronics, Personal Computing, and mobile devices.” said Mr. SR Tsai, General Manager of MediaTek’s Wireless Connectivity & Networking Business Unit. “Having our Android Smartphone, Digital TV, as well as our connectivity solutions for Windows platforms selected for the MiracastTM test bed is a strong testament to the breadth and quality of MediaTek’s Wi-Fi technology.”
                                              MediaTek offers a broad portfolio of high-performance SoC and wireless connectivity solutions for the proliferation of smartphones, tablets, PCs, DTVs, Blu-ray players and AP/routers. The Wi-Fi CERTIFIED MiracastTM MediaTek solutions included in the test bed are:
                                              MT662X a/b/g/n Dual-band Mobile Connectivity Combo
                                              RT3592, Ralink 802.11n Wireless Adapter
                                              MV0690 DTV Sink
                                              The Wi-Fi CERTIFIED MiracastTM MediaTek solutions have entered mass production and are shipping in commercially launched devices.
                                              * Windows is a registered trademark of Microsoft Corporation in the United States and other countries.

                                              See also:
                                              Wi-Fi CERTIFIED Wi-Fi Direct™: Personal, portable Wi-Fi® that goes with you anywhere, anytime [Wi-Fi Alliance, Aug 15, 2010]

                                              As far as the 2160p (“Quad HD” or 4K) technology is concerned, which is already on our footsteps, I would first recommend to watch the below demo video available on YouTube in QUAD HD resolution. You should “simply” select the “Original” quality in full screen viewing mode, and if your monitor has sufficient resolution than you could get the proper experience (do not forget that your Internet connection should be sufficiently fast in terms of guarranteed dowload speed as well). If not than correspondingly less:

                                              IT005 QUAD HD 4K – Italy travel guide Bird watching [VOXLIBERTUM YouTube channel]

                                              Birdwatching in 4K on the River Adda. Natural Reserve maintained by Pro loco Villa D’adda – Footage courtesy by http://www.iris32.com – This 4K video is posted in original QUAD HD resolution. It has been produced with RED 16×9 HD with 4096 x 2304 pixel resolution. The color grading was done with REDCINE PRO X. It was mastered in FCP 7 with 4444 PRORES and than downscaled to 3840 x 2160 (QUAD HD) in PRORES 422 (LT) to reduce the file size under 20 GB. All original sequences used in this video are available on http://www.iris32.com. Should you require the 4444 PRORES original for maximum quality, please go to the IRIS32 website and mail a request. I hope you enjoy this little piece of birdwatching on the River Adda. Copyright 2012 – Frederick von Sulle, VOXLIBERTUM

                                              Then please watch another video which is showing what the leader in this TV technology, Toshiba was showing on the recent IFA 2012 fair in Berlin:
                                              Toshiba 4K Quad-HD 3840×2160 TVs with CEVO Engine upscaling/processing from 55″ to 84″ [Charbax YouTube channel, Aug 30, 2012]

                                              Toshiba is ramping up the production of their awesome Quad-HD screens, the 2D-only 55″ is awesome, but only for sale in Japan for now. But this year and the next, Toshiba is going to ramp up the manufacturing of these, I hope they lower the price of 55″ Quad-HD to sub-$2000 as soon as possible! The slideshows of 8 megapixel photos and 4K videos filmed with the Red camera videos look awesome on it!

                                              The reporter (Nicolas Charbonnier alias Charbax) did an excellent job with this video, as well as the Toshiba guy showing him around. Even his English is very good and enjoyable. Note that from [02:10] and “Glassless 3D” is shown and explained quite extensively, then highly zoomable Google Maps in 3D etc. Charbonnier is doing during all this an excellent job zooming with camera so one can really grasp the 4K and 3D experience quite well even in a normal viewing environment of your monitor. THANKS!

                                              More information:
                                              Toshiba unveils the first large-screen glasses-free 3D TV in Asia
                                              [Toshiba Singapore press release, May 3, 2012]
                                              Toshiba Brings New Generation of TVs and PCs to the Philippines Announces New Brand Ambassador [Toshiba Philippines press release, June 20, 2012]
                                              RZ1 SERIES NEW! Glasses-Free 3D TV [Regza Asia microsite, June 4, 2012]
                                              Toshiba Regza RZ1 [Toshiba Regza YouTube channel, May 31, 2012]

                                              Toshiba Regza RZ1 3D TV Review [gadgetguruindia YouTube channel, Aug 6, 2012]

                                              You can also watch Charbonnier’s shorter report about Sony 84″ 4K TV KD-84X9005 with 4K X-Reality Pro [Charbax YouTube channel, Sept 2, 2012] which came after Toshiba to the market and said to be widely available for Christmas.

                                              Finally: Status of the TV Display industry by Paul Gray, Director of European TV Research for DisplaySearch [Charbax YouTube channel, Aug 31, 2012]

                                              Here’s a 10-minute overview of the TV Display industry by Paul Gray, Director of European TV Research for DisplaySearch. Talking about Samsung, LG, Panasonic, Sharp, AUO, CMI, how they are losing money, how they are trying to bring new technologies like 3D and hopefully as soon as possible 4K to the market.

                                              6. Are the established client device players
                                              recognizing this strategic inflection point or not?

                                              Decide for your yoursel, dear reader:

                                              Ballmer trumpets Microsoft’s ‘epic year’ [The Seattle Times, Sept 15, 2012]

                                              Q: The iPad has the largest share of the tablet market, but its soft spot, it seems to me, is the price.With the Surface, are you planning to compete with the iPad on price or on features?
                                              A: We haven’t announced pricing. I think we have a very competitive product from the features perspective. …
                                              I think most people would tell you that the iPad is not a superexpensive device. … (When) people offer cheaper, they do less. They look less good, they’re chintzier, they’re cheaper.
                                              If you say to somebody, would you use one of the 7-inch tablets, would somebody ever use a Kindle (Kindle Fire, $199) to do their homework? The answer is no; you never would. It’s just not a good enough product. It doesn’t mean you might not read a book on it….
                                              If you look at the bulk of the PC market, it would run between, say, probably $300 to about $700 or $800. That’s the sweet spot.
                                              Q: Where do you see Microsoft’s position in five years, 10 years?
                                              A: First of all, I’d say: pre-eminent technology company. I think that in a back-looking view, people would say we were a software company. That’s kind of how we were born.
                                              I think when you look forward, our core capability will be software, (but) you’ll probably think of us more as a devices-and-services company. Which is a little different. Software powers devices and software powers these cloud services, but it’s a different form of delivery….
                                              Doesn’t mean we have to make every device. I don’t want you to leap to that conclusion. We’ll have partners who make devices with our software in it and our services built in. … We’re going to be a leader at that.

                                              Supply chain estimates x86 Surface Price at US$500-700 and RT below US$399 [DIGITIMES, Sept 18, 2012]

                                              Microsoft’s own-brand Surface tablets are expected to launch at the end of October with the related supply chain players estimating that the Surface RT’s hardware cost is at around US$300-400 and the end price will be less than US$399. However, the pricing is not confirmed by Microsoft.
                                              Microsoft’s pricing strategy for its own-brand tablets will relatively affect PC brand vendors’ pricing strategy and sales projections for their Windows 8 tablets. As the launch time at the end of October is approaching, PC brand vendors are keeping a close eye on Microsoft’s actions. With the related Surface pricing speculations having been floating around the market, Surface RT was previously rumored to be priced at only US$199, leaving the PC brand vendor in a cold sweat.
                                              Since CEO Steve Ballmer in a recent interview pointed out that a price level between US$300-800 will be the sweet spot for PC sales, some market watchers have interpreted the statement as a hint for Surface pricing.
                                              The sources revealed that the hardware cost of Surface RT is at US$300-400 and US$400-500 for the x86 version. Since the devices will not need to pay the licensing fee for the operating system. The RT version will be priced below US$399, while the x86 version is estimated to be US$100-200 higher based on hardware costs and priced at US$500-700.
                                              The PC brand vendors also pointed out that they will not be absent from launching x86-based Windows tablet products since Windows still has leadership position in the global enterprise market. If the x86 Surface’s end user price is at US$500-700, although they will feel the pressure from competition, the product line would still be profitable.

                                              Acer, Asustek Windows 8 tablet prices may be to high to attract consumers [DIGITIMES, Sept 20, 2012]

                                              Acer and Asustek Computer’s Windows 8 tablets are reportedly to be priced at above US$800, about the same price as the New iPad with the highest specifications, and market watchers are concerned that the high price may drag down consumer demand and impact the vendors’ performance.

                                              Although PC brands including Acer, Toshiba, Dell, Lenovo, Asustek, Samsung and Sony, have mostly unveiled or showcased their Windows 8 tablets publicly, their prices and specifications are still not yet to be officially revealed. However, some websites have recently leaked information about Acer and Asustek’s tablets including prices and specifications.

                                              Asustek is reportedly to release three Windows 8 tablet models and the 11.6-inch Vivo Tab will be priced at US$799.

                                              Acer reportedly will release two sizes of Windows 8 tablet – the 10.1-inch 64GB Iconia Tab W510 with Wi-Fi support only and priced at NZD999 (US$827), a keyboard accessory will raise the price to about US$993; and the 11.6-inch 128GB Iconia Tab W700 with Wi-Fi support only at NZD1,799 (US$1,490), and with a Bluetooth keyboard, the machine’s price will go up to about US $1,570.

                                              However, Acer and Asustek have both declined to comment on the leaked prices and only pointed out that they will host product launches in the near future. Intel has also recently sent out media invitations and will host a Windows 8 tablet conference on September 27 in the US to showcase tablets and convertibles from Acer, Asustek, HP, Lenovo, Dell, Samsung and ZTE to promote for the launch of Windows 8.

                                              Acer and Asus to Launch Windows 8 Tablet PCs in Q4 [CENS, Aug 22, 2012]

                                              Eying business opportunities created by the new Windows 8 operating system (OS), scheduled for release in October, Taiwan-based personal computer (PC) vendors Acer and Asus will soon launch Win 8 tablet PC models.

                                              Acer plans to launch two Windows 8 tablet PCs supporting keyboard input, and will soon launch several Android smartphone models, including the A9- and C-series in September. Acer`s CA and C1 smartphones will be demonstrated in pan-European market in the fourth quarter possibly in cooperation with some telecom carriers.

                                              Industry sources said that Asus` new tablet PC TF500T will be priced between its lower-end Transformer Pad TF300 and high-level model Transformer Pad Infinity TF700.

                                              Some institutional investors deem that after the Windows 8 products go to market, consumer response will decide how intensive PC vendors will promote compatible models.

                                              Lenovo has also announced to launch price-competitive Windows 8 tablet models priced from US$200 to US$300, with its IdeaPad Yoga notebook PC also to be announced in October.

                                              According to PC part and component suppliers, all major international vendors, including Dell, HP, Lenovo, Samsung, Acer and Asus, are actively developing Windows 8 products, leading to parts suppliers` revenue peaks in the fourth quarter.

                                              Compal Electronics Inc., a major contract notebook PC assembler, is reportedly developing Windows 8 notebook PC models for HP, which plans to unveil the new models in the fourth quarter to boost sales in the Christmas season.

                                              Acer to Keep Launching Netbook PCs: Chairman Wang [CENS, Sept 18, 2012]

                                              In the face of tablet PCs encroaching on sales of netbooks worldwide, J.T. Wang, chairman of Acer Inc., a Taiwanese, globally leading brand vendor of PCs, stated that his company will keep launching netbook models in the future.
                                              Since the launch of Apple Inc.’s iPad in 2010 ignited the market for tablet PCs, such emerging electronic devices have rapidly eaten into market shares of netbook PCs over the past few years. This forces most PC vendors, including Samsung, Dell and Lenovo, to consider giving up the diminishing market.
                                              Acer’s Taiwanese counterpart Asustek Computer Inc., which once rode on netbook PCs to achieve bigger shares of the global laptop market, also confirmed earlier that it will retire netbook PC production lines starting in the fourth quarter of this year, since such products, the company’s CEO Jerry Shen said, have already fulfilled tasks for the development of the global PC industry.
                                              Another factor prompting PC vendors to exit the netbook market is the lack of support from Microsoft and Intel. Accordingly, Microsoft doesn’t launch any starter edition of Windows 8 for netbook PCs, while Intel will focus the development of its Atom processors on tablet PCs and smartphones. This has made netbook PCs even more unworthy of development.
                                              But, Acer’s chairman Wang is still optimistic about the market for netbook PCs. He said that consumer demand for such devices will continue growing in emerging countries, not to mention that netbook sales in developed countries still make up a majority of the global total at present. Therefore, Wang said promotion of netbook PCs will remain part of his company’s product strategy in the short term.
                                              The latest statistics issued by International Data Corp. (IDC), a global PC market researcher, show that global sales of netbook PC totaled 8.913 million units in the first half of this year, with 26.2% of which supplied by Acer. The sales volume is estimated to reach between 15 million and 16 million units for the whole year.
                                              With most of its peers jumping out of the market, Acer, backed by strong brand recognition and huge outlets, is expected to take over most of the shares that they will leave to dominate this segment.

                                              Shares by Top 5 Brands in Global Market for Netbook PCs in Q2

                                              Ranking

                                              Brand

                                              Sales Volume

                                              Market Share

                                              1

                                              Acer

                                              1.182 million units

                                              26.2%

                                              2

                                              Asus

                                              1.019 million units

                                              22.6%

                                              3

                                              HP

                                              413,000 units

                                              9.2%

                                              4

                                              Samsung

                                              407,000 units

                                              9.0%

                                              5

                                              Canaima

                                              293,000 units

                                              6.5%

                                              Source: International Data Corp.

                                              Contract Manufacturers Make About Nine Out of 10 Media Tablets in 2012 [IHS iSuppli press release, Sept 21, 2012]

                                              Although your new media tablet may sport the logo of a familiar brand name like Apple or Amazon, there’s a 90 percent chance the device was actually made by a company with a much less famous moniker, such as Hon Hai or Quanta.
                                              That’s because the vast majority of tablets—including the iPad and Kindle Fire—actually are made by contract or outsourced manufacturers based in Asia, according to an IHS iSuppli Global Manufacturing & Design Report from information and analytics provider IHS. (NYSE: IHS). The percentage of tablets made by outsourced manufacturers is set to rise this year and beyond as brands seek to minimize operational risks and reduce costs.
                                              Outsourced manufacturers in 2011 were responsible for 87.5 percent of tablet production, compared to 12.5 percent that were made in-house. The percentage of outsourced tablets this year is expected to increase to 89.2 percent, with the portion claimed by in-house production projected to decline to 10.8 percent, as shown in the figure below. The years after that will see the share by outsourced manufacturing of tablets remain in the low 90 percent range, hitting a high of 91.1 percent by 2015 before settling back down at 90.4 percent in 2016.
                                              “The high percentage of outsourced manufacturing of tablets reflects the choice among tablet brands and original equipment manufacturers—even ones as big as Apple—to refrain from in-house production,” said Jeffrey Wu, senior analyst for OEM at IHS. “Tablet brands use outsourcing for many reasons, including faster time to market; the leveraging of capabilities, especially for firmware development and hardware integration; and asset flexibility that translates into reduced corporate expenditures and lower headcount.”
                                              Hon Hai Dominates Tablet Contract Manufacturing
                                              The biggest contract manufacturer of tablets is Apple partner Hon Hai, of Taiwan, also known as Foxconn. Hon Hai accounted for 62 percent of tablet shipments last year. The company’s position in the tablet space is unique—not only because it accounts for the majority of tablet shipments in 2011, but also because of its close relationship with Apple.
                                              Hon Hai is an EMS provider, a type of outsourced manufacturer that generally does not participate in designing product but simply offers manufacturing and supply chain management services. EMS providers for the most part control a smaller piece of the outsourced manufacturing space for computing products like notebook PCs—traditionally dominated by a rival group of makers known as original design manufacturers (ODM), which enjoy an advantage over EMS providers by being able to design products and offer manufacturing services alike. In the tablet production space, however, ODMs are the underdogs.
                                              This is because Hon Hai, with Apple as its main client, holds the coveted right to make the iPad, the industry’s best-selling tablet by a wide margin. The ODMs have then been left to scramble for what remains of the tablet market—making rival devices for the likes of Barnes & Noble, Amazon and Asus, none of whose product offerings matches the iPad’s soaring sales and unequalled clout.
                                              Android and Windows Power Rise of ODMs in Tablet Market
                                              With the emergence of Android—and soon, Windows-based tablets—ODMs will have a better chance of breaking Hon Hai’s near-impregnable hold on the market. If the Android and Windows tablets prove successful, ODMs could see their share of the tablet outsourcing market grow, expanding to as much as 53 percent by 2016, on the assumption that consumers will embrace iPad alternatives.
                                              Nonetheless, concerns for ODMs and Hon Hai alike could be in store.
                                              Currently sidelined in much of the dynamic tablet space, ODMs also have concerns about their prospects in future tablet production. Most ODMs make notebook PCs as well, and choosing to produce tablets for other clients could mean endangering their own stake in the PC market—much as tablets are now eating into the share traditionally enjoyed by notebook computers among consumers. However, strengthening their foothold in the tablet space is inevitable for ODMs, especially as tablets continue to gain momentum at the expense of notebook computers.
                                              ODMs also face potentially higher operating expenses and risks with the emergence of more tablet platform options—signified by the rise of Android and Windows—which would involve additional research and development costs in order for ODMs to maintain technical capabilities on those fronts.
                                              Hon Hai, the current champion among tablet producers, is likewise not entirely free of peril. Should Apple shift some of its tablet production to other contract manufacturers in an effort to diversify its contract manufacturing base, Hon Hai could suffer a blow.
                                              For other tablet brands like Samsung and Motorola that choose in-house production, their share of tablet manufacturing is not expected to exceed the 12.5 percent that the collective in-house space saw in 2011. Share of in-house production in the years ahead will stay in the 9 to 10 percent range, IHS  predicts, as ODMs and EMS providers battle fiercely among themselves for an increasing stake in the hotly contested tablet business.

                                              7. Possible further hardware advances
                                              sustaining this new trajectory.

                                              The current and already mature value proposition in brief is:

                                              the rhombus tech initiative, along with the EOMA-68 standard, has been designed to tackle the very problems that RockChip and other SoC vendors face. our strategy is very straightforward:

                                              a) invite SoC vendors to release EVBs in a standardised modular form which can go straight into mass-production, needing only a very simple 2 to 4 layer PCB for the main I/O of any matching product.

                                              b) standardise and therefore greatly simplify the software development. the advantage of having standard I/O boards (products into which the CPU Modules can fit) is that the software for those products will already have been written. porting a CPU Card to work in a range of existing hardware products is far, far simpler than forcing everyone to design complete products from scratch (including the software).

                                              the cost savings and time savings should be evident, and this is absolutely critical and will only become more so as the prices are driven down further by 28nm and beyond, as well as the product lifecycles becoming shorter and shorter.

                                              it’s quite complex to explain initially but very straightforward once it’s fully understood, and very exciting as well. would you be so kind as to mention to Mr Chen that we would love to work with him, especially to help introduce RockChip CPUs properly into the Free Software Community, which will result in considerable engineering cost saving for RockChip, apart from anything else? i am easy to find on the internet but here is my email address anyway: lkcl@lkcl.net

                                              Comment on 10/1/2012 by Luke Kenneth Casson Leighton, CTO at Rhombus Tech entered for China Fabless: Rockchip rattled by Android tablet wars [EE Times, Sept 25, 2012] 

                                              Latest information: A10 EOMA-68 CPU Card [luke.leighton | 24 Nov, 2012]

                                              hi folks, small update: wits-tech detected an ambiguity in how the usb
                                              interfaces work, which needed clarification from allwinner as well as
                                              a PCB layout alteration.  we'll have more details as-and-when they're
                                              available to us and as-and-when knowledge of the solution has been
                                              shared with is.  usual china "save face" thing is going on at the
                                              moment i.e. don't share details of the problem until a full solution
                                              has been found.
                                              
                                              what this translates into is at least another 2 weeks whilst the new
                                              PCB layout's done and the new sample PCBs are printed.  obviously
                                              that's an estimate, as it's beyond our control.

                                              Note: wits-tech = Shenzhen WITS Technology Co.,Ltd

                                              The original concept of a year ago:

                                              Embedded Open Modular Architecture/EOMA-68 [Embedded Linux Wiki, Sept 23, 2012]
                                              earlier: Embedded Open Modular Architecture/PCMCIA [Embedded Linux Wiki, Sept 5, 2011 – March 11, 2012]

                                              The Obligatory Tablet – a simple tablet motherboard which could potentially be developed as a very low cost single-sided 2-layer PCB. Components are chosen to reduce development cost and risk, as well as reduce manufacturing cost.

                                              Embedded Open Modular Architecture/EOMA-68/Tablet [Embedded Linux Wiki, Sept 21, 2011],
                                              note that what is excerpted below had not essentially been changed till Feb 12, 2012, the last date of change for this wiki page

                                              The Tablet Motherboard

                                              Popular by decree, but only successfully-sold when the price is stunningly low yet the feature-set rich, tablets are the “must-have” for all ODMs and OEMs who aspire to a chunk of the large apple pie. Key goals for this motherboard are therefore to be small, slim, low component count and based on a low-risk development strategy. Thanks also to the modular design, the board is sufficiently simple that it may even be possible to do as a single 2-layer PCB, thus reducing costs even further.

                                              Connectors and Components

                                              The connectors required are:

                                              • 1x USB2
                                              • PCMCIA Connector “inline” (signals conforming to EOMA/PCMCIA Standard)
                                              • 5V Power
                                              • 1x PCI Express “inline” (supporting USB Wifi, not PCI-e Wifi, such as RT2070 and RT8191)
                                              • 1x Stereo Speakers and Microphone
                                              • 1x RGB/TTL LCD Output (with LED Backlight)
                                              • 2x Battery Connectors

                                              Major components are:

                                              • An STM32F103RBT6 Embedded Controller (same as in the Micro Engineering Board)
                                              • A 4-port USB-2 High-speed Hub (e.g. FE11
                                              • 12.5Mhz XTAL (for the USB Hub)
                                              • Power Management ICs (Buck Converters for 3.8v Lithium to 5.0v; 3.3v LDOs)
                                              • Step-up DC-DC Converter for the LCD Backlight AP3029
                                              • An I2C EEPROM
                                              • An RT2070, RT8191 or Atheros ath9k USB-compliant MiniPCIe WIFI Module
                                              • An Antenna for the WIFI Module
                                              • A 7in LED-backlit LCD (e.g. AT070TN93)
                                              • A resistive or capacitive touchpanel (resistive: low-cost; capactive: expensive, often more expensive than the LCD)
                                              • A slim-line PCMCIA Ejector Assembly

                                              The estimated BOM is therefore around the $30 to 35 mark [Sept 21, 2011 !], excluding the EOMA/PCMCIA-compliant CPU Card, and including the batteries, case and WIFI module. The most expensive component is the LCD Panel, whilst the 2nd most expensive one is the batteries.

                                              Diagram of Tablet Motherboard Layout

                                              From this diagram, it can be seen that there is very little involved. Like the Odroid, it’s possible to have a product where the connectors and buttons define the size of the PCB more than the ICs and discrete components. In this case, many of the major connectors (such as USB-OTG, HDMI, Micro-SD and Headphones) will already be on the EOMA/PCMCIA-compliant CPU Card, leaving nothing left for the motherboard than to provide USB2 and Power connectors! An alternative revision is also shown which takes a USB 3G Modem, in PCI-e form-factor.

                                              image

                                              Diagram of Tablet Construction

                                              image

                                              Others:     Laptop                                               LCD Monitor (TV)

                                              File:A10 eoma pcmcia laptop.pngFile:EOMA Lcd tv motherboard.png

                                              Embedded Open Modular Architecture/EOMA-68 [Embedded Linux Wiki, Sept 23, 2012]
                                              earlier: Embedded Open Modular Architecture/PCMCIA [Embedded Linux Wiki, Sept 5, 2011 – March 11, 2012],
                                              note that the excerpts below are essentially as of Sept 21, 2011, image: Jan 16, 2012

                                              EOMA-68 Specification

                                              This page describes the specification of EOMA-68. The number of pins on the interface is 68; the physical form-factor is the legacy PCMCIA.

                                              Re-purposing of the PCMCIA interface and form-factor has been chosen to create portable Embedded Computing Modules (Computer on Module). Mass-volume “Lowest Common Denominator” interfaces have been chosen, all of which have existed for over a decade, but are low-power enough to be standard across virtually all mass-produced powerful Embedded CPUs.

                                              The interfaces are:

                                              • 24-pin RGB/TTL (for LCD Panels)
                                              • I2C
                                              • USB (Low Speed, Full Speed, optionally Hi Speed/480 Mbit/s and optionally USB3)
                                              • 10/100 Ethernet (optionally 1,000 ethernet)
                                              • SATA-II (optionally SATA-III)
                                              • 8 pins of General-purpose Digital I/O (GPIO).

                                              These interfaces are NOT OPTIONAL for CPU Cards. All CPU Cards MUST provide all interfaces. I/O Boards on the other hand are free to implement whichever interfaces are required for the device. For example: whilst all CPU Cards must have an SATA interface, devices such as tablets or laptops into which CPU Cards are plugged are not required to have an SATA hard drive.

                                              Future Versions

                                              … At the time of writing (2011), the interfaces in the 1.0 Specification are “Lowest Common Denominator” yet are still present across the majority of 2011’s powerful embedded SoCs (OMAP4440, Enyxos4210, Tegra 3, iMX53 etc.) However, in the future, the “Lowest Common Denominator” could well comprise MIPI instead of RGB/TTL, 2 lane PCI-express (or its successor), and USB-3 instead of USB-2 (perhaps even a faster version of ULPI).

                                              As of 2011 however, the total number of Embedded CPUs supporting all these newer interfaces and still keeping to a 1.5 watt budget is precisely zero. Support for these high-speed interfaces will therefore be re-evaluated in 2 to 3 years time, and a future version of this standard created when a large proportion of available embedded CPUs have these or other high-speed interfaces that are available at the time.

                                              The project had been initiated by a Crowd funding proposal [Rhombus Tech, Dec 25, 2011],

                                              note that Rhombus Tech website rhombus-tech.net started on Nov 18, 2011 as well as there was an earlier low-cost EOMA-PCMCIA CPU Card initiative (allwinner cortex a8) e-mail by Luke Kenneth Casson Leighton <lkcl@lkcl.net> on Dec 14, 2011
                                              To: opensuse-arm@opensuse.orglinaro-dev@lists.linaro.org, arm@lists.fedoraproject.orgmeego-community@meego.com,ubuntu-server-arm@lists.ubuntu.com,   maemo-developers@maemo.org, gentoo-embedded@lists.gentoo.orggeneral@lists.tizen.org,
                                              ARM <debian-arm@lists.debian.org>
                                              Cc: Linux on small ARM machines <arm-netbook@lists.phcomp.co.uk>

                                              Aim: Small (Free as in Speech) Linux device which can be upgraded

                                              In particular, a small CPU card which:-

                                              • Complies with GPL (Free as in Speech)
                                              • Powerful
                                              • Upgradeable
                                              • Cheap

                                              For example I can buy a tablet, after a few years the display, touch-screen and memory will be perfect. After a few years I may want to upgrade the CPU, or fix a software bug, or both – at the moment this is not possible.

                                              We are aiming for this CPU Card will have full GPL Source Code publicly available and will be suitable for many purposes including use as a Freedom Box, or as an embedded computer, or in the future to drive products such as Tablets, Laptops, IPTVs and Desktop PCs simply by plugging it in. These devices can then run a nice GNU/Linux distribution like Debian, Ubuntu or similar.

                                              Current Situation
                                              Not many tablets or small devices run a nice GNU/Linux distribution like Debian, Ubuntu or similar. They are either low powered, closed source, GPL violating or not cheap.
                                              The problem that if you want low-cost mass-produced hardware, you normally have to go with GPL-violating product. We then spend the majority of our time reverse-engineering before getting something useful. By the time we are done, the product is usually end-of-life: thus if it breaks, we are back to square one. If there is a security bug in the kernel supplied – again we are back to square one.
                                              The reason for the GPL violations is that the low-cost China-based Factories simply have zero software skill and a chain of about five business relationships between the seller and manufacturer. The manufacturer has got their money at this stage, so at this point we are asking the manufacturer for more effort in return for no extra income. Thus, we logically concluded that the only way to get non-GPL-violating product out there is to go directly to the factories and be the supplier of their software.
                                              Aim of this Funding Round
                                              To get funding, to deliver a stable CPU on a card:-
                                                • GPL: Full source code available.
                                                • Powerful: 1.5ghz
                                                • Upgradeable: A standard layout, which will allow the card to be ejected and replaced.
                                                • Cheap: Stable version at $30
                                                  Long Term Aim
                                                  High-volume production, then the costs will be $15. Yes $15 for GPL-Loving, powerful, packaged CPU Card.
                                                  So put this with :-
                                                    • 2000mAh battery $8,
                                                    • 7in 800×600 LCD $15,
                                                    • resistive touchpanel $5,
                                                    • main motherboard including WIFI module about $8,
                                                    • Case about $3

                                                      Total of $39. yes, really – $39. So basically, you can see that a mass-volume retail cost of about $80 for a 7in tablet with the Allwinner A10 and a resistive touchpanel would be quite reasonable. Running Debian, with a CPU upgrade only costing $15.

                                                      Progress So Far
                                                      Rhombus Tech has been established to serve Free Software Developers, entrepreneurs, enthusiasts and Engineers with access to affordable, modern and importantly GPL-compliant hardware. It is a Community interest company – designed for social enterprises that want to use their profits and assets for the public good.
                                                      Over the past two years we been contacting and vetting China-based factories, directly, to find at least one which is prepared to work with us. We found one.

                                                      We have also found an absolutely great CPU, called the Allwinner A10, which in mass-volume quantities is only about $7: that means that a PCB similar to the raspberrypi with similar features can be made for about $15 (not $25) and, because the Allwinner CPU is an ARM Cortex A8 not an ARM11 it is at least three times quicker than the raspberrypi’s CPU. (A 400-pin highly feature-rich 1.5ghz ARM Cortex A8 with a MALI400 GPU. )

                                                      We have full support of the Board of Directors of the Allwinner CPU: they released full source code to us in advance. We have made it available and found it to compile successfully.

                                                      We have selected a standard layout, which will fit within 55mm, which large number of pins can be removed by the user without damage. Which will be the cases are already available and which will have a trivial cost in low-volumes. A PCMCIA format.
                                                        • Complies with GPL – Yes
                                                        • Powerful – Yes
                                                        • Upgradeable – Yes
                                                        • Cheap – Not yet.
                                                          Next Steps
                                                          The primary reason for using a Community Interest Company for the sale of GPL-compliant products to Free Software Developers is that profits from sales will be re-invested directly into development of further products, with a primary focus of serving the Free Software Community yet at the same time leveraging mass-volume sales opportunities.
                                                          But this needs a kick-start. Then the end-product will get cheaper, then profits are re-invested and end-products get cheaper still. The snowball needs a little magic snow to get it started.
                                                          Magic Snow required: $13,500
                                                          To fund the three stages:-
                                                            • Unstable (Also know as Sid for all Debian lovers) : $3,500
                                                            • Testing Stage: $4,000
                                                            • Stable: $6,000
                                                            • Long Term Support: Self-funding
                                                              Unstable
                                                              5 CPU cards available at a cost of $3,500
                                                              A initial cost of $2000 per “board development change”. This is the non-recurring expense. This sets up the PCB tooling so further changes cost about $1500. The aim is to have a development board, tweak then have a second set of development boards.
                                                              This gives us the hardware only – about 5 development boards available. Time for the 15 Debian developers, already on board to start coding. (Bootloader, Kernel and main software).
                                                              Timeframe – AA months
                                                              Rhombus Tech to loan the boards to the developers, free as in beer, in return for help with coding.
                                                              Testing
                                                              100 CPU cards available at a total cost of $4,000 Timeframe – AA + BB months
                                                              We have a board, the bootloader work and the kernel is okay. No full Distribution images as yet. If you are a software developer and are basically happy to get involved doing u-boot, debian-installer, ubuntu images a board is suitable to play with at this point. Hard, but not impossible.
                                                              Rhombus Tech to loan half (50) CPU cards to developers, free as in beer, in return for help with coding. The other half of the board to be sent as premium rewards.
                                                              Stable
                                                              250 CPU cards available at a total cost of $6,000 Timeframe – AA + BB + CC months
                                                              Rhombus Tech to give 50 boards to developers, free as in beer who helped with coding. The remainder of CPU cards to be sent as rewards.
                                                              Long Term Support (Just for Ubuntu lovers)
                                                              Timeframe – AA + BB + CC + DD months CPU Cards at less than $30
                                                              The CPU cards can then be produced in mass-volume. Sold through Rhombus Tech, with profits used to seed further CPU upgrades.
                                                              Rewards
                                                              Total funds required for Unstable, Testing and Stable stages: $13,500
                                                                • Testing CPU Cards – $50 (Aiming for 50 = $2,500)
                                                                • Stable CPU Cards, with working OS image – $50 (Aiming for 50 = $2,500)
                                                                • Stable CPU Cards – $35 (Aiming for 200 = $7,000)
                                                                  Special Rewards
                                                                    • A Rhombus Tech Sticker sent world wide – $5 ($1.50 profit per sticker)
                                                                    • Mention in the source code – $5
                                                                    • A certificate mentioning your contribution to the Small (Free as in Speech) Linux device which can be upgraded. – $10
                                                                    • A testing CPU Card, with your choice of Debian Packages loaded by a Debian Developer – $250
                                                                    • You select the code name for the Unstable Board (legal, ethical names only) – $250
                                                                    • You select the code name for Testing CPU Card (legal, ethical names only) – $500
                                                                    • You select the code name for Stable CPU Card (legal, ethical names only) – $1,000

                                                                    Then more information came in the for of FAQ [Rhombus Tech, March 25, 2012]

                                                                    What’s the goal, again?
                                                                      • To create a synergy between the ultra-low-cost Factories and SoC vendors of China with their expertise in Hardware, and Software (Libre) Developers with their expertise in GNU/Linux and other OSes, with a view to leveraging the combination to create affordable and desirable mass-volume products that are GPL-compliant before they hit the Retail Hypermarket shelves;
                                                                      • For those products to be modular, versatile and open, so that they can be upgraded without the environmental waste of throwing away an entire device; for Retailers, Factories and users to be able to keep up with the rapid and increasing pace of technological development;
                                                                      • For anyone to be able to use the products for their original purpose as well as for Educational purposes, Research, Engineering and more.
                                                                        How will this goal be achieved?
                                                                        Very carefully, in small steps, having learned from the experiences of the OpenMoko and OpenPandora projects.
                                                                          1. Produce very simple EOMA-68-compliant CPU modules which can act as stand-alone computers in their own right (powered via USB-OTG) so that Software (Libre) Developers have something to start working on.
                                                                          2. Start designing IO boards.
                                                                          3. Software (Libre) Developers help develop the software to run on the products.
                                                                          4. Products go to market.
                                                                          5. Profit.
                                                                          6. Use profits to repeat the process, to the benefit of all parties, including the Software (Libre) Developers.
                                                                            And… a CIC? really? But those are for Social Clubs!
                                                                            The rules for CICs are “to not make a loss”, which makes sense for any business. There is no limit on the profitability of a CIC: it’s just that, at the end of each Financial Year, the profits have to be allocated to a charitable cause, or they have to have been ploughed back into the business. A Community Interest Company simply does makes more sense in the context of the goals of bringing Software (Libre) Developers together into this exciting technological area that has previously been dominated by vertical market sales strategies.
                                                                            Why is the price of the Allwinner A10 EOMA-68 Card $15?
                                                                            It damn well isn’t! We are getting a massive amount of misunderstandings about this. We have reported that based on estimates from the Reference Board supplied by the Manufacturer of the SoC that the MATERIALS COST is APPROACHING $15 in MASS VOLUME quantities of 100,000 units.
                                                                            That is excluding a case, power supply (which as the unit can be powered by USB-OTG is not needed), packaging, tax, customs duty, shipping and, most importantly, a profit margin.
                                                                            Any company has to make a profit, and a CIC is no different. Charities and Not-for-Profit Foundations can get away with not making a profit, but Rhombus Tech is not a Charity.
                                                                            Profits made will be used to fund Free Software Developers, as well as future CPU Cards and the creation of Reference Design Products: Laptops, Routers and so on, all of which will be done in an Open fashion.
                                                                            What is EOMA?
                                                                            It stands for “Embedded Open Modular Architecture”. The concept of modular architecture isn’t new: many companies have divided out CPUs into separate PCBs or modules, but it just hasn’t been done recently, not on a mass-volume scale and not on a user-controllable basis. See the elinux.org EOMA page for more information.
                                                                            Why re-use PCMCIA??
                                                                            It’s legacy – nobody makes PCMCIA cards any more: it’s all changed to the PCIe-based “PCI express” aka “ExpressCard” thing. However, it turns out that Satellite TV “Conditional Access Modules” are in PCMCIA form-factor, meaning that the connectors, housings and assemblies are all still mass-produced. So there’s less risk of having someone destroy their CPU card if they force-break the mechanical barriers (see specification for details) but the pricing on parts is still good in mass-volume quantities.
                                                                            What’s so special about the interfaces on EOMA-68?
                                                                            The interfaces that have been picked happen to have been around for at least a decade, and the number of pins, including 16 pins of GPIO and including enough GND pins to separate each of the high-speed signals, by a jammy coincidence comes to exactly 68 pins.
                                                                              • RGB/TTL: 28 pins
                                                                              • USB2: 2 pins
                                                                              • I2C: 2 pins
                                                                              • 10/100 Ethernet: 4 pins
                                                                              • SATA-II: 4 pins
                                                                              • GPIO: 16 pins
                                                                              • 5V Power: 2 pins @ 0.5A per pin
                                                                                The total comes to 58 pins, and there are 5 groups of GND pins to separate each group. Grand total: 68 pins. jammy or what? More information is available here.
                                                                                Whoa, wait, PCMCIA is 100ohms approximately!
                                                                                Yes, we know. It’s not all bad. By a coincidence, SATA-II is 100 ohms and USB-2 is 90 ohms. We think that’s close enough. Absolute absolute last resort: both SATA-II and USB-2 can be ramped down in speed. This would be a bugger, but at least product would work. Other than that: yes it is possible to adjust impedance through careful placement of tracks and ground planes etc.
                                                                                Bottom line: we’ll just have to pick the right PCMCIA connector supplier, that’s all.
                                                                                Why is the first CPU that RHT picked a China-based one?
                                                                                Cost and features – pure and simple. Consumers do not care about Software Freedom – they just don’t. Only Software (Libre) Developers care about Software Freedom. However, GPL Compliance is very very important to RHT, because we do not wish to be liable for GPL violations, and we do not wish our mass-volume Retail Hypermarket Clients to be liable for GPL Violations, either. So, RHT has spent the past two years negotiating with SoC vendors to find one that has the three critical factors of: 1) Cost 2) features 3) GPL Compliance. Amazingly, it was a China-based Fabless Semiconductor Company that first met the requirements. Yes we are looking for more.
                                                                                Which CPUs have you analysed so far, and why were they rejected?
                                                                                We have analysed dozens of CPUs. With the exception of the Allwinner A10, none of them really fulfil all of the criteria. This section turned out to be so large that it was moved to its own page: Evaluated CPUs.
                                                                                So what FSF Hardware-Endorseable options are there?
                                                                                  • The Ingenic MIPS jz4760 (700mhz) – $USD 7 in mass-volume
                                                                                  • The 600mhz ARM Cortex A8 OMAP 3503 ($19, 1k volumes)
                                                                                  • The 720mhz ARM Cortex A8 AM3357 – ($14, 1k volumes and $5 in 100k)
                                                                                    Sadly, none of these CPUs however fulfil the mass-volume criteria of being able to do 3D Graphics or 1080p video. Some of them can do 720p, but that is not enough for commercial mass-volume purposes: it really does have to be 1080p now. 4 years ago, 720p was acceptable: now it isn’t.
                                                                                    These CPUs are listed on the Evaluated CPUs page.
                                                                                    Is this an “Open Hardware” Project i.e. can I get the full schematics?
                                                                                    This is a misleading question: here’s some clarification. The EOMA-68 initiative is an “Open Specification. That means that anyone can create either CPU cards or motherboards that conform to it. Thus, it is possible for anyone to create an “Open Hardware” compliant CPU card or motherboard.
                                                                                    Rhombus Tech has chosen to work with a small, dynamic factory in China that loved the idea of the “we’ll do the software if you do the hardware” deal. It would be rather a different proposition for us to then ask them to release the full schematics.
                                                                                    Also in development is a 8mm-high (Type III) EOMA-68 CPU card with a AMD 64-bit x86 APU with Dual-core CPU, integrated Radeon 3D Graphics, with full Free Software support.
                                                                                    Bari also has an initiative to turn the Beaglebone or any other ARM SOC or AMD Fusion APU into an EOMA-68 CPU card, if enough people show interest in this happening. Given that the Beaglebone (and other systems like it such as the IMX53QSB, Origen, Pandaboard etc.) schematics are available under an Open Hardware License, the Beaglebone EOMA-68 CPU Card will be “Open Hardware”.
                                                                                    Additionally, given that the Leaflabs Maple is an “Open Hardware” Project, there exists the possibility for the creation of EOMA-68-compliant Motherboards based around the adaption of Leaflabs Maple Boards.
                                                                                    Summary of the above: it’ll happen. (update: 10jan12 – sooner than anticipated!schematics being developed here).

                                                                                    Rhombus-Tech/ allwinner a10/ news

                                                                                    24 Jul 2012: Casework for EOMA-68 CPU Card

                                                                                    Titoma Design is delighted to be involved with the EOMA-68 project and has a preliminary design for the first EOMA-68 CPU Card, using the Allwinner A10 SoC. Titoma Design specialises in casework and full product design, and will be more than happy to assist clients to develop products based around the time and cost saving benefits of the EOMA-68 upgradeable design strategy.

                                                                                    28 Jul 2012: GPIO and Expansion Headers for EOMA-68 CPU Card

                                                                                    A rework of the GPIO and Expansion Headers for the first Qimod EOMA-68 CPU Card has been carried out. Almost all interfaces available of the Allwinner A10 CPU have been made available on the 55x85mm Credit-card-sized CPU Card, including both Transport Streams, SIM Card, PATA, the 24-pin Camera Interface, both 24-pin LCD Interfaces, VGA, Composite Video (CVBS), SPDIF, AC97, I2S, GPS, CAN-Bus, Infrared, and many more. This is in addition to the standard EOMA-68 Interfaces of Ethernet, I2C, SATA, LCD 24-pin RGB/TTL, USB2 and 16 GPIO pins.

                                                                                    The rework involved adding an extra optional 45-pin FPC, which is in addition to the optional 44-pin FPC. The orders page has been updated to reflect the full pinouts, as well as the finalised selection for the 16 EOMA-68 GPIO pins.

                                                                                    The most current product information therefore is available on Preorders [Rhombus Tech, July 28, 2012, but preorders are listed from Dec 12, 2011 to Sept 23, 2012]

                                                                                    This is the preorders page for EOMA-68-compliant Allwinner Cortex A8 CPU modules. This product will have full GPL Source Code publicly available, and will be suitable for many purposes including Educational and R&D purposes, a USB-OTG-powered Thin Client, use as a Freedom Box, or as an embedded computer, or in the future to drive products such as Tablets, Laptops, IPTVs and Desktop PCs simply by plugging it in. Some options for hardware that is on the roadmap are described as example motherboards on the EOMA-68 page.

                                                                                    Features

                                                                                    The Allwinner EOMA-68-compliant module will have the following features:

                                                                                    • Approximately Credit-card size format (56mm x 90mm)
                                                                                    • An Allwinner A10, 1.2ghz ARM Cortex A8
                                                                                    • 1gb of RAM
                                                                                    • at least 1gb of NAND Flash (possibly up to 16gb)
                                                                                    • Operation as a stand-alone computer (USB-OTG powered)
                                                                                    • 2160p (double 1080p) Video playback
                                                                                    • MALI 400MP 3D Graphics, OpenGL ES 2.0 compliant.
                                                                                    • HDMI, Micro-SD, Headphones Socket,
                                                                                    • EOMA-68-compliant interfaces (RGB/TTL, I2C, USB2, SATA-II, 10/100 Eth)
                                                                                    • Expansion Header (similar to Beagleboard, IMX53QSB, Origen etc.)

                                                                                    These are the available interfaces on the 44-pin [Expansion Header’s interfaces] DIL:

                                                                                    • 2pins: 1x USB-2
                                                                                    • 8pins: 5-pin AC97 shared with 8-pin I2S Signals.
                                                                                    • 2pins: PWM0 (PB2)
                                                                                    • 4pins: TV-Out, VGA-Out
                                                                                    • 4pins: 4-wire Resistive Touchscreen
                                                                                    • 10pins: LVDS0 (multiplexed with LCD0)
                                                                                    • 10pins: LVDS1 (multiplexed with LCD0)
                                                                                    • 5V and 3.3V power

                                                                                    Due to multiplexing on the Allwinner A10, the following interfaces are also available on the PCMCIA connector via the 24-pin RGB/TTL pins (WARNING: non-EOMA-compliant).
                                                                                    • IDE (PATA)
                                                                                    • 24-bit Camera Sensor
                                                                                    • 20 External Interrupts
                                                                                    • 8×8 Keypad Interface
                                                                                    • 2 full UARTS with RX,TX,CTS,RTS
                                                                                    • CAN-bus
                                                                                    • 2 PS/2 interfaces
                                                                                    • SD/MMC 3.0 Ultra-High-Speed Class, UHC-I
                                                                                    Further multiplexing also allows the I2C interface to be switched over to two extra GPIO pins (WARNING: non-EOMA-compliant).
                                                                                    Also, the pins on the Micro SD/MMC interface can also be switched over to JTAG and a UART. With a special PCB with a Micro SD/MMC slot on the end it is possible to perform debugging of the device, live, without opening it up.
                                                                                    The Infrared Interface on the expansion header supports the following data formats:
                                                                                    • MIR FIR IrDA 1.1
                                                                                    • 0.576 Mbit/s 1.152 Mbit/s Medium Infrared (MIR)
                                                                                    • 4 Mbit/s FIR IrDA 1.4
                                                                                    • CIR
                                                                                    These are being considered:
                                                                                    • 2pins: 3.8v Battery Connection, on separate connector
                                                                                    • 3pins: Reset and Power, on separate connector
                                                                                    • 3pins: u-boot select, on separate connector
                                                                                    Pricing
                                                                                    Regarding pricing: the hardware NREs from the factory are $USD 2,000. Therefore, based on the number of committments so far (23 as of 2011Dec12), pricing looks set to be around $100. By the time the number of preorders reaches 30, that will be around $75 (30 reached as of 2011Dec17). (Update: as of 2012Mar01 the alpha units have reached 141 and it’s down to $41 per unit assuming NREs of $2,000 and component costs of $30. Please note: we do not yet know the unit cost! this is entirely preliminary!).
                                                                                    The mass-volume (100k units) cost will be somewhere around $15: the more committments received, the closer the price will get to that. One expression of interest has been received for 1,000 (stable) units: a pricing evaluation request is outstanding with the factory and will be reported as soon as it is received.
                                                                                    Please note: this cost excludes a case, power supply, packaging, shipping, tax, customs and import duty. and profit.
                                                                                    Software Freedom Information
                                                                                    Regarding Software Freedom: the caveat regarding this CPU is that it requires ARM-proprietary libraries for the 3D Graphics (as does virtually every single suitable consumer-grade embedded SoC on the planet with the almost exclusive sole exception of the Ingenic jz4760 and some of the TI ARM Cortex OMAP and Sitara SoCs). However, simply not using the proprietary MALI 3D GPU does not impact any other functionality in any way.
                                                                                    (update: MALI 400MP is being reverse-engineered)
                                                                                    Yet to be determined is how to program the proprietary 2160p MPEG decoder, but through a preliminary examination of the GPL Source Code it would appear that the drivers are publicly available. However, this CPU does have NEON, so can be used for Software Decode of Open CODECs.
                                                                                    Overall: if this module is not for you, an AM3357 module may be more suitable.

                                                                                    [committments so far:
                                                                                    – 23 as of Dec 12, 2011
                                                                                    – 30 as of Dec 17, 2011
                                                                                    – 141 alpha units as of Mar 01, 2012
                                                                                    large (=5 or more) number of units on preorder after Mar 01:
                                                                                    215= 43×5
                                                                                    762=9×10+1×15+1×18+3×20+1×30+1×49+2×50+4×100
                                                                                    3466=1000+1000+1000+466
                                                                                    75000=15000+50000+10000
                                                                                    so the whole project looks quite feasible from the point of view of achieving the $15 unit cost for which 100K units should be on order
                                                                                    ]

                                                                                    Rhombus-Tech/ allwinner a10/ news

                                                                                    6 Sep 2012: PCB design completed for EOMA-68 CPU Card

                                                                                    Many thanks to Wits Tech for completing the PCB design: the board layout and GERBER files are done. This brings the A10 EOMA-68 CPU Card one step closer to reality. The next stage is to get initial samples made up, the first script.fex created and a first boot completed.

                                                                                    [Wits Tech with products such as: MID and PCBA, e-book, smart MP4, 1080P high-definition MP4, 768P, 1080P harddisk player, IPTV, Google TV-BOX and so on]

                                                                                    Following on very very quickly from this, and driving a rather fast development schedule, is a commission from a client to convert an existing x86 laptop (1280×800) over to using the new A10 EOMA-68 CPU Card, and to provide 25 working prototypes for a Trade Show. Luckily, as the CPU Card is completely independent of the I/O Board, separate teams can focus on the development tasks.

                                                                                    Other news coverage:

                                                                                    Marketing Strategy [Rhombus Tech, May 1, 2012]

                                                                                    • TTM – Time to market lead
                                                                                    • Open versatile Common Platform
                                                                                    • EOMA One

                                                                                    Three ways EOMA helps to bring new products to market faster and save money

                                                                                    EOMA – From month to weeks TTM reduction
                                                                                    ODM
                                                                                    One platform, many Distros: Vanilla GNU/Linux, Android etc.
                                                                                    Software comes pre-flashed by default
                                                                                    One module, many applications
                                                                                    Instant upstream compatibility with Linux GIT tree
                                                                                    OEM
                                                                                    Need for software expertise is removed from OEM side
                                                                                    BOM reduction X 5
                                                                                    Access to bigger market platform
                                                                                    Readapting the design is as easy as changing one module
                                                                                    System Integrators
                                                                                    Quick access to many ODM designs
                                                                                    Plug and play
                                                                                    LOW TTM and high flexibility
                                                                                    Update process is made trivial and faster
                                                                                    Reasoning behind the Marketing Strategy
                                                                                    EOMA is platform for the whole industry that benefits the whole “food chain”.
                                                                                    Its good for ODM because they will have upstream support and they will be able to support their own clients better.
                                                                                    For OEMs the benefit is that they will no longer need to deal with software by themselves, it simplifies production and logistics, lowers production run times thus less cost of capital.
                                                                                    For integrators, the benefit is less obvious, but its also lower time to market, increased ability to reuse existing designs.
                                                                                    In general, the idea is that EOMA uses open source principles to increase efficiency across the industry. EOMA will be doing to computer hardware market the same thing what linux has done to server OS market.

                                                                                    Rhombus Tech Presentation [Rhombus Tech, March 12, 2012]

                                                                                    • what is the project.
                                                                                        EOMA is an initiative to separate the platform from the widget
                                                                                        EOMA module is System-On-Module that will come in standardized 68 pin package
                                                                                        It can utilize most of low cost SoC of your choice. At current stage, Allwinner A10 is the favoured chip.
                                                                                        The first EOMA-68 CPU Card is Cortex A8 based design
                                                                                        Module provides I2C, USB, Ethernet, SATA, 8 bit ttl rgb (display), and gpio on remaining pins
                                                                                        At current stage Rhombus plans to reinvest all profits into platform development and improvement
                                                                                        • what is the advantage and scenarios.
                                                                                            Rhombus facilitates upstream integration with linux and other major OSS projects.
                                                                                            OEMs receive standard platform that greatly reduces time-to-market.
                                                                                            OEMs no longer need to contract ODMs or have extensive software expertise to make a worthwhile product.
                                                                                            • what is the latest status of this project.
                                                                                                Rhombus is in process of getting pre-orders
                                                                                                lkcl [Luke Kenneth Casson Leighton] is working with manufacturers to start production

                                                                                              See also: Embedded Open Modular Architecture

                                                                                              This slideshow could not be started. Try refreshing the page or viewing it in another browser.


                                                                                              More background: British company looks to create cheap, open platforms [iTWire [Australia], Jan 10, 2012]

                                                                                              Luke LeightonA British community interest company, Rhombus Tech, is part of the way towards developing a micro-computer on a circuit board, much like the Raspberry Pi.
                                                                                              The man behind the effort, Luke Kenneth Casson Leighton, says his product will be much more powerful, having an ARM Cortex A8 CPU, which is 3x times faster than the 700mhz ARM11 used in the Raspberry Pi. The mass-volume cost target being aimed for is $US15 and it will be available for educational purposes as well as being a part of a retail product line.
                                                                                              Leighton (pictured above), who is a free software developer, is also attempting to bring together FOSS developers with Chinese hardware makers, so that each can use the other’s creation and benefit from doing so.
                                                                                              He has ambitious plans for Rhombus Tech to help build a number of devices, including a tablet, using the same method – harnessing the effort of free software developers and Chinese hardware manufacturers.
                                                                                              One thing he sees as a plus in the tablet effort is that it will create an Android system that conforms to the norms of the GPL and be easier for FOSS developers to deal with. At present, there is a plethora or tablets and many of the manufacturers, who are the vendors as well, are unaware of GPL requirements or else do not care.
                                                                                              “We are acting as the catalyst to invite other people to make such products by inviting them to participate, through the EOMA-PCMCIA initiative – simplified modular upgradeable hardware – and putting them in touch with Software (Libre) Developers,” Leighton says.  
                                                                                              “We’re not funding the products, we’re doing deals with factories and with SoC fabless semiconductor companies, offering them free access to free software developers, asking them in return that they not charge us for their hardware engineering time.”
                                                                                              Leighton says the efforts he is making are both altruistic and profit-oriented. “The fundamental principles behind Software (Libre) are more important to me than profit, but no profit gets you nowhere, so we’re setting out to do something rather unusual: merge both worlds.
                                                                                              “I’ve learned the lesson: you can’t make money from selling software (Libre) as a service in a world which has been Pavlov-trained to pay for boxed product and zero for the service. Patronage is dead – I’m the lead developer of – or have been the lead developer of – quite a number of free software projects, and the amount of money I’ve received through donations since 1996 is under $1000 in total. That’s under $65 per year, despite saving hundreds of thousands of businesses vast sums of money in proprietary software licence fees.
                                                                                              Instead, we’ve made the decision to profit from sales of hardware, with GPL-compliant software (Libre) pre-installed that actually does the job, masquerading as ‘yet another mass-volume product’ and beating the (GPL-violating) competition on price, convenience and usefulness.”
                                                                                              Leighton has been at this game for nearly eight years. “I started contacting companies to get the source code of Linux phones – the Shanghai-based E28 smartphone, for example – back in about 2004,” he says.
                                                                                              “It was a complete failure. I just had to let the GPL violations go. Instead I focused on reverse-engineering HTC’s smartphones. Then Android came along, some years later, and the situation has clearly got worse, not better.”
                                                                                              But there are some upsides to the plethora of Android devices out in the market. “At least the cost of hardware came tumbling down. However, because of Android and because of the endemic GPL violations surrounding Android, this fantastic hardware, which could potentially be used for so much more than it is, is basically stuck in dead-end roles such as ‘browsing uh few web pagiz’, ‘wotchin uh film’ and ‘playing a few gamez like angry burds’.”
                                                                                              Leighton has had some interesting early experiences trying to achieve his goal, learning through his own mistakes. “As the very first experimental ARM11 (non-x86) Linux-based (non-Android), laptop (non-tablet) hardware began to make its way out of China-based R&D companies, we reached out to them. The first was the Chitech CT-PC89E which turned out to be a complete nightmare, but an important learning curve.”
                                                                                              “Over the course of several months, and after 18 months of thinking about what the hell went wrong, empirical evidence tends to suggest that the development of the CT-PC89E was PRC Government-funded, and was supposed to be used for monitoring of PRC citizens, in a hardware-locked fashion, running an ARM-based PRC-Government-funded port of Red Flag Linux.”
                                                                                              Leighton says that he was “naively” intending to sell this ARM-based laptop in Europe and asked for versions of the laptop that would support European-based EDGE/3G modems. All that he was offered were China Telecom WCDMA modems that would only work in China.
                                                                                              Since source code could not be obtained, he took recourse to reverse-engineering. “We reverse-engineered the Linux kernel (discovering some very poorly-designed ‘security’ measures along the way), installed Debian on it, and an associate of ours took it along to their office and presented one of their machines running Debian/Lenny to them. They went extremely quiet.
                                                                                              “The poor girls at the Chitech factory in China, who have absolutely no software engineers but just ‘make hardware’, were so scared of what they learned, through us, that they pulled the product from their portfolio. We were the first – and last – people to ever order samples. That was over two years ago, now.”
                                                                                              Leighton was not put off, however, and persisted in trying to make headway. Next we decided that this was a ridiculous situation, and began a process of contacting more than 200 factories in China to find one that was willing to do a deal. Two years later, we found one. It actually took going over to China and having face-to-face meetings with over 30 companies even to find that one factory.”
                                                                                              His deal with the factory basically boils down to “we won’t charge you for software engineering if you won’t charge us for hardware engineering“.
                                                                                              “As these factories often have to pay large sums of cash upfront for BSPs (board support packages) and then have to also pay to have them customised so that the factory at least has ‘some’ unique selling point and they ‘still’ end up with a GPL-violating binary-only firmware blob, it’s a good deal for them,” he says.
                                                                                              The problems Leighton has faced make for interesting reading – though they were anything but interesting at the time when he encountered them.
                                                                                              “We’ve bought samples from factories, shipped some of them to potential clients, requested the GPL source code and been denied access to it, in direct violation of the GPL,” he says. “Often we were told that we had to place orders for 20,000 units in order to be given the source code; we told them absolutely not, why the hell would we place such a massive order for an untested product that didn’t do the job that the client needed? In the cases where product was shipped to potential clients prior to non-receipt of the GPL source code, this was incredibly embarrassing for us.”
                                                                                              What he has learned is that there is a long chain of people involved, with communication breakdowns and GPL violations in some cases beginning right at the start of the chain.

                                                                                              “The SoC (system on a chip) manufacturer provides a reference design including a BSP. The reference design is bought by original design manufacturers (ODMs), usually under NDA (which is the first GPL violation). The ODMs license their modifications to factories and give them binary-only distributions, a second GPL violation.

                                                                                              “The factories have absolutely no software engineers. They do not even know what source code is, let alone what an ‘Apache’ (licence) or a ‘GPL’ is. The factories sell product to importers; they in turn sell to wholesalers who sell to retailers and from there it is sold to end-users.”

                                                                                              Leighton says it is absolute hell to chase a GPL violation back through this chain, fighting ignorance and arrogance across international boundaries every step of the way. “After trying to be patient with this process, several times, we have concluded that it is a complete waste of time to pursue GPL violations just to do a deal, selling hardware product that is GPL-compliant: it’s too late by then.”

                                                                                              Instead, he has decided to do things a different way. “We are looking to work with the factories and with the SoC vendors, being involved right down the chain, keeping software (Libre) developers involved and informed along the way as well, such that the products, when they reach the shelves in Europe for example, are fully GPL-compliant before they even get there.
                                                                                              “That involves finding a SoC company, a factory and software (Libre) developers who will trust us, as well as finding a hypermarket retail store in Europe that will trust us!”
                                                                                              Despite all these issues, light is visible at the end of the tunnel. “We’re at a critical phase where we’ve managed to convince our first China-based factory of the value of a ‘we won’t charge you for software engineering time if you won’t charge us for hardware engineering time’ deal. The CPU that we’ve found is an ARM Cortex A8, it runs at up to 1.5ghz, it’s an absolute corker, and it’s only $7 in mass-volume. That means that a PCB that’s equivalent to the Raspberry Pi in size and features could be manufactured for a whopping 40 per cent less money – only around $15 instead of $25, and yet it would be at least 3 times faster than the Raspberry Pi (which uses only a 700mhz ARM11),” Leighton says.
                                                                                              We have the full support of the SoC fabless semiconductor company, Allwinner: they’ve given us full access to the GPL source code and the complete BSP; from a small-scale series of announcements (we’ve kept it to the debian-arm mailing list so far) we have more than 30 software (Libre) developers interested in buying first alphas of the ‘bare-bones’ EOMA-PCMCIA-compliant CPU card using Allwinner’s CPU card.”
                                                                                              While Rhombus Tech’s first product will be just a credit-card-sized PCMCIA CPU card that can run as a USB-OTG-powered computer, Leighton says that, provided there are sufficient advance orders, “for a 10-inch laptop, with Android, we’re looking at mass-volume pricing of around £90, retail, in the UK (and about £125 for a 12in one). For a 7-inch tablet (with the lower-quality but lower-priced resistive touch screen), we’re looking at around £50 retail.”
                                                                                              He says the only reason this is achievable is because there was no £250,000 to £500,000 up-front cost on development of the product – not on the cost of the hardware, and not on the cost of the software. The products will all be fully GPL-compliant.
                                                                                              “What’s even better is that when a new, or faster, or cheaper (or all three) CPU comes along, then rather than force people to throw away the entire device, we will be in a position to pay a factory to get a new EOMA-PCMCIA-compliant CPU card out in record time, and then just sell that through the same channels, as a user-installable ‘upgrade’ to their ‘existing’ laptop, tablet, desktop, internet TV, whatever it is that’s been designed to take EOMA-PCMCIA-compliant CPU cards at the time.
                                                                                              “With the embedded computing market moving so rapidly, we want to give both factories and users the opportunity to keep up-to-date without feeling guilty about land-fill. And, the GPL compliance and involvement of the free software community means that the devices will always be ‘unlocked’, and will serve both their original purpose as well as being a low-cost open educational and R&D platform.”
                                                                                              Rhombus Tech has just five people involved, all operating on a commissions-only basis. The relationships between the five go way back, with the company being set up just two years ago.
                                                                                              Luke Kenneth Casson Leighton, CTO at Rhombus Tech [LinkedIn]
                                                                                              Current: Rhombus Tech [since Nov 2011], Pyjamas, VizzEco Inc.
                                                                                              Previous: NC3A, iYonderBZflag
                                                                                              Education: Imperial College London

                                                                                              I’m a free software advocate, technology specialist and technology researcher.
                                                                                              My vocation is to seek out, understand, document and then explain all the archaic, esoteric and obscure technologies i come into contact with. So far, that has led me to network-reverse-engineering of Windows NT 4.0 Domains; reverse-engineering the High Tech Corporation’s Wince Mobiles in order to run Linux on them just for fun; Adopting Python as a core programming skill before it became fashionable; Writing an XML-based programming language before _that_ became fashionable.
                                                                                              The upshot of all this is that there really isn’t very much in Computing Technology that I would particularly find difficult – or if it _is_ difficult, I’ll be able to tell you why; and if I’ve not encountered a technology before, I’ll tell you so, up-front, and then go find out about it for you. So if you need advice on what technology can do for you, or if you need to know if something is possible, you only have to ask.
                                                                                              Also, I am able to advise on best working practices in Software Development, as I have done a significant amount of Software Engineering and Project Management in Free Software. Free Software leadership is a little different from traditional Project Management, in that the people you’re leading don’t actually have to listen to you! So if there is a delicate situation that needs handling, and your current approaches simply aren’t working and you still need to get results, you might want to consider asking for my help and advice.

                                                                                              Rhombus Tech preparing to launch a PCMCIA-sized computer module for tablets, notebooks, more [Liliputing, Sept 8, 2012]

                                                                                              Rhombus Tech is working on a project to develop a computer module that supports open source software and which can be used in a variety of devices.
                                                                                              The idea is that you’ll have a PC-on-a-board that works a bit like a Raspberry Pi or MK802 mini PC. But instead of using this as a standalone computer, you’ll be able to slot it into a wide range of devices including tablets and notebooks.
                                                                                              So instead of replacing your laptop when the CPU starts to feel outdated, you’ll be able to pull out the module containing the CPU and other vital components and slide in a newer model.
                                                                                              The first Rhombus Tech design is called the A10 EOMA-68, and it’s expected to be a PCMCIA card-sized PC module powered by an Allwinner A10 ARM Cortex-A8 processor.
                                                                                              That’s the same chip used in the Mela A1000, MK802, Mini X, and a number of other inexpensive Android tablets, TV boxes, and other devices.
                                                                                              In fact, members of the Rhombus Tech team were responsible for the first builds of Ubuntu Linux that were able to run on the Mele A1000… which led to a number of developers porting Ubuntu, Fedora, Puppy, and other Linux-based operating systems to run on Allwinner A10 devices such as the MK802.
                                                                                              Right now the A10 EOMA-68 is still in the planning stages, but Rhombus Tech announced that there’s now a PCB design in place, and the next step is to produce samples that can be used for testing and demonstration purposes.

                                                                                              Tom Cubie’s role in the initiative and elsewhere:

                                                                                              Tom Cubie’s Public Profile – Ushi

                                                                                              Tom Cubie cubieTech co-founder
                                                                                              China’s Mainland
                                                                                              Guangdong – Zhuhai >>>>>>>>>
                                                                                              Industry: Semi-conductor

                                                                                              Work Experience

                                                                                              嵌入式软件工程师 [Embedded software engineer]
                                                                                              珠海全志科技 [珠海Zhuhai全志科技Allwinner Technology] (100 ~ 499)

                                                                                              June 2011 – Present (1 year 3 months)
                                                                                              ARM Linux BSP 内核开发[Kernel development]

                                                                                              [Software] Design Engineer
                                                                                              Imagination Technologies Ltd.
                                                                                              August 2010 – June 2011 (10 months)

                                                                                              Education:
                                                                                              HUST [Huazhong University of Science and Technology]

                                                                                              CUBIETECH LIMITED or in more detail
                                                                                              方糖科技有限公司

                                                                                              Domicile: Hong Kong
                                                                                              Type: Private, ltd by shares
                                                                                              Formed: 29-Aug-2012
                                                                                              HK companies registry: 1793090

                                                                                              websites: 1. www.cubietech.com  2. http://cubieboard.org but the content is the same at the moment

                                                                                              Zhuhai [Wikipedia]

                                                                                              Zhūhǎi (Chinese: 珠海) is a prefecture-level city on the southern coast of Guangdong province in the People’s Republic of China. Located in the Pearl River Delta, Zhuhai borders Jiangmen to the northwest, Zhongshan to the north, and Macau to the south. Zhuhai was one of the original Special Economic Zones established in the 1980s. Zhuhai is also one of China’s premier tourist destinations, being called the Chinese Riviera.
                                                                                              Zhuhai became a city in 1979, a year before it was named as one of the first Special Economic Zones (SEZ). The neighboring city of Shenzhen became the first Special Economic Zones of the Special Economy Zone in 1978. The implementation of this policy is logical as Zhuhai is located on the strategic position facing Macau, in the identical fashion by which Shenzhen faces Hong Kong. This enabled the Chinese Central Government to open another “window” in front of Macau. Even though the city is situated at the southern end of the Pearl River Delta area, Zhuhai acts as one of the central cities in the Pearl River Delta according to the new general urban plan approved by the State Council. The implementation of Special Economy Zone means that the city will grow as a powerful modern port city, science and education city, scenic and tourism city, and as a regional hub for transportation.

                                                                                              Introducing the MK802 FreedomStick [FreedomBoxBlog, ]

                                                                                              Recently a whole range of cheap Android devices have become available, all powered by the Allwinner A10 SOC. Thanks to the way A10 devices boot they are very easy to hack. All that is needed is a bootable SD card. How to make such a card is no big secret, and there are now multiple SD card images available. You can boot for example Lubuntu or Debian instead of Android. One A10 device, the MK802 stick computer, is almost ideal for a small home server. I bought one to examine its potential for the FreedomBox.
                                                                                              What A10 devices are available?
                                                                                              The A10 is used in a whole range of products, from tablets to TV multi media boxes to stick computers. The most popular devices are:
                                                                                              The $70 Mele A1000. This is a complete computer. Some specs: 512 Mb RAM, SD slot, support for SATA Hard-disks, connectors for multiple types of monitor (VGA/HDMI/Analog video), 10/100 Ethernet connector, WIFI, Audio out and two USB host ports.
                                                                                              The $65 MK802. This is a stick sized computer (0.47 x 3.46 x 1.38 inch) that has (of course) less connectors than the Mele A1000. The specs are: 1024 MB RAM (older versions 512 MB), microSD slot, HDMI video out, WIFI, one USB host port and one USB-OTG port.
                                                                                              You will probably agree with me that the $70 Mele is a better deal – the MK802 is overpriced. It would not surprise me if the MK802 drops in price to about $40 in the near future.
                                                                                              Links.
                                                                                              Here are some links to start with if you are interested in A10 devices:
                                                                                              Much pioneering work on the A10 was done by Luke Kenneth Casson Leighton. Luke is the one behind Rhombus Tech. A Community Interest Company, which is developing an open hardware Computer-on-Module that uses the A10. Lots of info can be found at:
                                                                                              http://rhombus-tech.net/allwinner_a10/

                                                                                              A good place to buy an A10 device is “The Cubies hacker shop” at:
                                                                                              http://www.aliexpress.com/store/511685

                                                                                              from HERE: Tom Cubie Jul 15, 2012 +3 
                                                                                              Hi, i am Tom Cubie, i have a shop on aliexpress selling allwinner powered devices. I am also the developer who ported u-boot to A10 and contribute to the A10 kernel source code. Welcome to my shop: http://www.aliexpress.com/store/511685
                                                                                              Mele A1000 70$(A10, 512MB, 4G)
                                                                                              Mele A2000 75$(A10, 512MB, 4G)
                                                                                              Smallart uHost 70$(A10, 1GB, 4G)
                                                                                              [these are set-top boxes]

                                                                                              Tom Cubie (alias hipboi) is very actively involved in getting GNU/Linux working on the A10. Just like Luke he is planning to release open hardware based on the A10.
                                                                                              http://cubieboard.org/

                                                                                              Both the SD card images i used come from the miniand.com website. Miniand sells A10 devices and has a busy forum at:
                                                                                              https://www.miniand.com/forums/
                                                                                              MK802 images are available at:
                                                                                              https://www.miniand.com/forums/forums/development/topics/mk802-guides-and-images
                                                                                              Another company that sells the MK802 and other A10 devices is Rikomagic.
                                                                                              http://www.rikomagic.co.uk/
                                                                                              forum:
                                                                                              http://www.rikomagic.co.uk/forum/viewforum.php?f=2&sid=3c3ef83dd83af61f8af6a82c6b28cf47
                                                                                              Someone named gnexus has a very interesting site about A10 devices:
                                                                                              http://a10linux.org/
                                                                                              Last but not least – i enjoyed the info at Jeff Doozan’s site.
                                                                                              http://forum.doozan.com/list.php?6
                                                                                              Android-powered Cubieboard is already sold out [TG Daily, Sept 11, 2012]
                                                                                              We first covered [Sept 3, 2011 – bit the first public info was available from CNXSoft on Aug 31, 2012] the Android-powered Cubieboard – which is targeted at devs and modders – last week.
                                                                                              The uber-mini developer board is priced at a rather sweet $49, so one really can’t avoid drawing comparisons  between this little device and the wildly popular Raspberry Pi.
                                                                                              However, the little Cubieboard boasts a faster processor, more memory and integrated storage. The first Cubieboard prototypes were offered for $49 plus shipping (from China) on  AliExpress – but have already sold out. [e-mail address be given on a cubieboard page]
                                                                                              Here’s a quick rundown of the Cubieboard specs if you missed it the first time around last week. The device is powered by a a 1 GHz Allwinner A10 ARM Cortex-A8 processor paired with Mali 400 Graphics. Cubieboard also features 512 MB of RAM and 4 GB integrated flash storage. Unsurprisingly, a souped-up version of the board is reportedly in the works and will be loaded with a total of 1 GB of RAM.
                                                                                              The dev board is also equipped with an HDMI output, dual USB ports, an SD card slot for memory expansion, and other expansion pins and connectors for adding peripherals. Although the Cubieboard does sport an integrated Ethernet jack it lacks integrated Wi-Fi. As such, one of the available USB ports will have to be given up for a dongle – if wireless access is required. Soldering is a must if you want to use any of those header pins for additional accessories.
                                                                                              Originally, there was no indication that the bare-bones Cubieboard was equipped with 4 GB of flash storage,  a feature which will make the already attractive system even more appealing to devs and modders.
                                                                                              Cubieboard is capable of running Android (2.3 and 4.0), as well as multiple flavors of Linux.

                                                                                              There is a Cubieboard wiki page [Aug 4 – Sept 24, 2012] on linux-sunxi wiki from June 30, 2012. This wiki is:

                                                                                              dedicated to all software and documentation related to hacking sunxi based devices and to thedevices themselves and is maintained by the arm-netbook community.
                                                                                              sunxi represents the family of ARM SoCs made by Allwinner Tech. in Zhuhai (Guangdong, China). The most popular sunxi SoC model is the Allwinner A10 (aka sun4i) and the Allwinner A13 (aka sun5i). Their predecesor was an ARM9 named Boxchip F20 (sun3i) and their successor whose specs are currently unknown, will be the sun6i.
                                                                                              Main components of the A10 / A13:
                                                                                                The A13 is a cheaper version of the A10. It lacks HDMI and SATA and is primarily targeted towards tablets.[1]
                                                                                                Featured Community Hardware
                                                                                                EOMA68-A10

                                                                                                RhombusTech aims to create an Open Hardware EOMA68 compliant CoM with an Allwinner A10 CPU inside to be the user replaceable heart of different devices.
                                                                                                cubieboard

                                                                                                A mini (10x6cm), hacker friendly, extendable and very low-cost while powerful ARM board with A10.
                                                                                                Open Source Hardware
                                                                                                A13-OLinuXino

                                                                                                Open Hardware SBC with an Allwinner A13 CPU inside developed by Olimex with 512MB RAM, 4GB NAND Flash, VGA, Audio In/Out, WIFI, 3x USB Hosts, USB-OTG, LiPo, SD-card, 72 GPIOs, 6-16VDC power input

                                                                                                A10-OLinuXino

                                                                                                Open Hardware SBC with an Allwinner A10 CPU inside developed by Olimex with 1GB RAM, 4GB NAND Flash, VGA, HDMI, RS232, JTAG, SATA, 100MBit Ethernet, SD and micro-SD cards, 2x USB hosts, USB-OTG, LiPo, 132 GPIOs, 6-16VDC power input

                                                                                                CedarX wiki page [July 14 – Sept 16, 2012] on linux-sunxi wiki:

                                                                                                CedarX is Allwinner’s multimedia decoding technology. It is composed of several parts, including:
                                                                                                  1. A hardware video decoding unit
                                                                                                  2. Proprietary libraries to communicate with the hardware unit
                                                                                                  3. Glue code to use those libraries on an actual system with video playback capabilities (e.g. Android)
                                                                                                  Benefits
                                                                                                    • Efficient use of system resources when decoding multimedia.
                                                                                                    • Allows small ARM systems to playback high resolution/bitrate multimedia content, which wouldn’t be possible using software-only decoding.
                                                                                                        Disadvantages
                                                                                                          • The proprietary libraries have no clear usage license.
                                                                                                          • The android glue code is implemented as a “media player” (parallel to stagefright) instead of as OMX components.
                                                                                                          • This media player has limitations when it comes to playing back content pointed to by Android URIs and some web-based content.
                                                                                                          • There is no glue code for any other multimedia frameworks on GNU/Linux systems. The use of OMX would’ve rendered this a non-issue, with existing projects like GstOpenMAX.
                                                                                                              Integration
                                                                                                              Reverse Engineering
                                                                                                              On June 15 2012 Iain Bullard started reverse engineering the proprietary libraries.

                                                                                                              Allwinner A10 devices [XBMC Wiki for collaborative documentation of XBMC Media Center and related topics, May 19 – Sept 6, 2012]

                                                                                                              Set-top boxes

                                                                                                              Mele A1000/A2000
                                                                                                              Mele A2000.jpg
                                                                                                              Mele A1000 is the same hardware and specs as the Mele A2000. The case design is slightly different, and the A1000 only has 2GB of internal flash formatted, but still has 4GB of internal flash total (should be able to be reformatted to use full 4GB).
                                                                                                              The Mele units appear to have the most ports available of all the Allwinner A10 set-top/TV boxes, including SATA (normally accessible from a top “dock” for 2.5 HDDs, but can also be accessed from plugging an SATA cable to the main board inside.)
                                                                                                                Mele A100
                                                                                                                Same as the A1000/A2000, but lacks an SATA dock/connector.
                                                                                                                MK802
                                                                                                                MK802.jpg
                                                                                                                Some units have 512MB of RAM, while others have 1GB of RAM. Has a female mini HDMI port, but comes with a short miniHDMI to full sized HDMI cable. One USB B port, and one USB mini OTG port that can also act as a USB host port with included adapter, or be powered by the mini USB port. DC power connector. Internal wifi. MicroSD card slot.
                                                                                                                DX.com has a listing for a “AK802” that appears to be an identical unit to the 1GB RAM version.
                                                                                                                  Mini X
                                                                                                                  Pineriver H24.jpg
                                                                                                                  Might be called Mini X, H24, or even the Mini Xplus (for legal reasons, apparently). All three are the exact same hardware. Has HDMI and analog video (composite?), two USB ports, one microSD card slot, IR sensor (most should come with a remote), removable wifi antenna, DC power connector (5 volts). Can be powered by included DC adapter, USB to DC cable (not included) or a male-to-male USB cable on the USB OTG port. Similar to the MK802, some units have 512MB of RAM, while others have 1GB of RAM.
                                                                                                                    Smallart UHOST
                                                                                                                    Smallart UHOST.jpg
                                                                                                                    Comes with a motion activated remote. Male HDMI port is directly on device. Size: 120mm x 50mm x 13mm. 1GB RAM. Built-in wifi b/g/n. Has one USB host port, and another microUSB port that turns the device into a USB drive. This microUSB port also seems to provide power to the device. Micro SD card slot. Mic jack and what seems to be an on-board mic (?).
                                                                                                                    Also sold as “Oval Elephant” from Oval Elephant.

                                                                                                                      Other

                                                                                                                      Gooseberry Board
                                                                                                                      Gooseberry.jpg
                                                                                                                        HackBerry
                                                                                                                        Hackberry.jpg
                                                                                                                        1 GB RAM, 4GB internal flash, SDHC slot, 2 USB 2.0 ports, 10/100Mbit ethernet, wifi: 802.11 b/g/n, HDMI video out, composite video out, audio in minijack, audio out minijack, IR sensor.
                                                                                                                          Cubieboard
                                                                                                                          1G ARM cortex-A8 processor, NEON, VFPv3, 512KB L2 cache, Mali400, OpenGL ES GPU, 1GB DDR3 @480MHz, HDMI 1080p Output, 100M Ethernet, 4GB Nand Flash 2 USB Host, 1 MMC slot, 1 SATA, 1 ir, 96 extend pin including i2c, spi, lcd, sensors, ..

                                                                                                                          MeLE website: http://www.mele.cn/ (Chinese) or http://en.mele.cn/ (English)

                                                                                                                          Congratulation to Mele’s 8th Anniversary [Mele press release, Sept 4, 2012]

                                                                                                                          About Mele [Dec 20, 2012]:

                                                                                                                          Shenzhen Mele Digital Technology Ltd. is a global leader for design and manufacturing of internet High Definition (HD) multimedia terminals and a system solution provider for customers worldwide.
                                                                                                                          Shenzhen Mele has been leading the trend of introducing multimedia internet devices and applications into living rooms. Shenzhen Mele’s forward-looking market research, proven technological expertise and acumen, mature and efficient development process, ever-expanding manufacturing capacity and capability, rigorous quality assurance measures, enables Shenzhen Mele to win competitions by product innovation, feature differentiation, and time to market. Shenzhen Mele has a long history of successful track records of providing Original Product-planning Manufacturing (OPM) services and Original Design Manufacturing (ODM) services to our premium brand customers globally, and providing internet multimedia terminals with Shenzhen Mele’s own brand to our consumers in China.
                                                                                                                          Shenzhen Mele’s multimedia terminal products manifest the direction of digital evolution of future home. Shenzhen Mele’s products integrate internet applications, local area network (LAN) content browsing and sharing, data storage, data transport, HD multimedia playback and recording, HD digital TV playback and recording, multimedia home theater system, multimedia player and DVD combo, SoundBar multimedia player, camera and mobile phone etc. Shenzhen Mele’s system solutions include remote content distribution, device configuration and management, and product and feature customization for service providers, and remote data transport and content management service for end customers.
                                                                                                                          Shenzhen Mele is devoted to Complete Customer Satisfaction (CCS). We provide 7×24 around the clock services. We always solve customer issues by investigating root causes and addressing source of a problem. We strive for daily improvement and continuous progress in our course of pursuing perfectionism. Our corporate vision, our corporate social responsibility, and our down-to-the-earth working style of “starting from me” motivate our staff to work harder and smarter everyday. We sincerely believe that Innovations Enriches Quality Life.

                                                                                                                          8. The Nufront challenge coming from inside

                                                                                                                          Information about the latest tablet SoC contender Nufront, also posing the greatest challenge to Allwinner for the next year as it stands now (as of Nov 1, 2012):
                                                                                                                          Nufront Announces Taishan Platform Targeting Mobile Devices Market [Nufront press release, May 7, 2012]: “The NS115 mobile computing chip, a dual-core ARM Cortex™-A9 MPCore™ processor up to 1.5GHz and Mali™-400 MP GPU implementation, features 1080P HD encode/decode and support of Android 4.0.
                                                                                                                          NUFRONT NS115 dualcore chipset – ARM at Computex 2012 [ARMflixYouTube channel, June 14, 2012]
                                                                                                                          $81 Nufront NS115 ARM Cortex-A9 Dual-core 7″ 1024×600 IPS Tablet by Xusit [Charbax YouTube channel, Oct 28, 2012]
                                                                                                                          Nufront and ARM Extend Partnership to Provide OEMs with Competitive Solutions for Next-Generation Smartphones, Tablets and Smart-TVs [joint ARM and Nufront press release, Sept 24, 2012]: “Nufront licenses latest ARM Cortex-A15 Processor and Mali-T658 GPU technology to drive innovation and address consumer demand for advanced features
                                                                                                                          Nufront licenses cores from Ceva, Vivante [EE Times, Sept 8, 2011]
                                                                                                                          Interview with Nufront: “Windows RT will take away market share from notebooks” [ITProPortal, Oct 17, 2012]: “When do you expect Nufront to bring out (a) its first Cortex-A15/Mali Midgard products (b) products based on your Vivante/Ceva license? We are targeting the end of 2013.
                                                                                                                          Why is it that Nufront is not as popular as rivals such as AllWinner, VIA, Mediatek, Rockchip especially at the lower end of the market? We started from dual core system-on-chips, and dual core SoCs are going down to low end but not yet, it’s still single Cortex-A8 everywhere, while we believe the dual core A9 will go to the low end by the end of this year, and we will definitely be there, we are ready.”
                                                                                                                          ARM Technologies Power Nufront’s First Computer System Chip To Reshape Laptop Market [Nufront press release, Sept 14, 2010]: “NuSmart™ 2816 is the world’s first chip to integrate a 2GHz dual-core ARM Cortex-A9 processor, a multi-core 2D/3D graphics processor, 64bits DDR2/3-1066 memory controller, 1080p multi-format video engine, SATA2 controller, USB2, Ethernet, together with general I/O controllers. By leveraging the multi-layer hybrid interconnection technology, multi-level fine grain power management technology and advanced 40nm manufacture process, NuSmart™ 2816 is very energy efficient consuming less than 2 Watts when running at 1.6GHz.
                                                                                                                          Ubuntu Adds Sparkle to Nufront Laptops at CES [PCWorld, Jan 7, 2011]
                                                                                                                          – From ARM.com: POP™ IP > Cortex-A9: “Nufront was the first company to produce an SoC with the Osprey hard macro running at 2.0 GHz (typical conditions).” … Osprey: ARM Announces 2GHz Capable Cortex-A9 Dual Core Processor Implementation [ARM press release, Sept 16, 2009]: “The Cortex-A9 hard macros and the corresponding optimized physical IP used to develop the speed-optimized and power-optimized implementations are available for license today with delivery in the fourth quarter of 2009.” … Partnership in action > Nufront CSC: Vince Zhou, General Manager at NUFRONT CSC on their adoption of ARM’s Cortex-A9 processor and Mali multi-core graphics processor technology, and high-performance Physical IP “... For 2011, we have set a target that $250 laptops will be widely available in China and rest of the world, based on the NuSmart 2816. Together with our partners we have an opportunity to create low-cost laptops with low-energy chips that drive the new computing era.
                                                                                                                          ARM announces ‘Osprey’ A9 core as Atom-beater [EE Times, Sept 16, 2009]
                                                                                                                          Nufront released the second generation of NuSmart2816 series chip – NuSmart2816M [Nufront press release, Feb 13, 2012]
                                                                                                                          Nufront at Computex 2012 [Charbax YouTube channel, June 8, 2012] where both the 2nd gen NumSmart2816M and the 3d gen NS115 are shown, the latter introduced as a LP (Low Power) and improved architecture implementation with 40% less power consumption than the NS2816M, also targeted for the smartphone market (in the video also their baseband chip is shown to be shipped in 2-3 months) and to be shipped a month later. Towards the end they acknowledge that their big hope for the NS2816 and NS2816M didn’t become a reality, because the laptop market remained a niche one (I would add it was due to overwhelming success of Android in the tablet space vs. the envisaged by them Ubuntu on the laptops), so they are refocusing on the tablet market. They also acknowledge trying to work with Microsoft on the Windows RT opportunity (but Microsoft is NOT shown as a partner). It is also said that they have almost 700 people working for them. To the last question they say that they have been living so far on mobile TV systems for China only [not true considering that they lost the battle against CMMB in China as shown in the following]. Note from their website: “Our superior, patented T-MMB (Terrestrial- Mobile Multimedia Broadcasting) system” (see also the T-MMB Q&A), Enhanced Ultra-High Throughput (EUHT) SuperWlanUHT (Ultra-high Throughput Wireless LAN) and NUHT (Next UHT), and probably video search by “NuVideoTM supports hundreds of TV channels anywhere, anytime in any situation with real time catalog, automatic high-speed editing and processing.” as well.
                                                                                                                          – From Nufront’s own sponsored content on DIGITIMES [June 6, 2012]: “… Nufront was established in June 2004 with its first office located in Bejing, China. Through support from the government, Nufront began R&D of T-MMB systems. By 2006, Nufront’s T-MMB system had passed field tests conducted by the government. By November 2007, the firm had announced success in developing the first T-MMB chip called NF9001. In 2009, Nufront added two new branches, Beijing Pu Ji Xin Technology and Beijing Nufront Mobile Communication Technology. … The firm stated its goal is to become a comparable firm to Qualcomm and MediaTek. Nufront aims to create a unified platform that consists of both telecommunication and PC functions to meet the needs of various types of mobile smart products.
                                                                                                                          China Digital TV Transmitter Market Report, 2012 [Reportlinker.com press release, Oct 30, 2012]: “With respect to mobile devices, T-MMB was adopted as the national standard on April 3, 2008, but denied by the State Administration of Radio, Film and Television (SARFT) which has been actively promoting CMMB (China Mobile Multimedia Broadcasting) network construction. With investment in digital TV transmitter reaching approximately RMB600 million in 2010 and not less than RMB800 million in 2011, CMMB has become the major player with respect to signal coverage and user group.
                                                                                                                          2011 Mobile TV Development Report [Zhang Rui on Sina blog, Oct 15, 2012]: “.. by the end of 2011, CMMB network covered more than 336 prefecture-level cities, 885 economically developed county-level cities with signal coverage rate reaching 98.22%, covering a population of nearly 800 million, and as such CMMB has become the world’s largest mobile radio and TV coverage network. … as of the end of 2011, CMMB nationally more than 35 million users, paying subscribers reached 16 million. In 2011, through the widespread cooperation with China Mobile, they jointly promoted the development of 11.29 million bi-directional end users, creating a precedent for the conversion rate of mobile data services with a 73.3% conversion rate; with new users the one-way terminal user base increased in 2011 to 6 million. …” Note: CMMB… is based on the Satellite and Terrestrial Interactive Multiservice Infrastructure (STiMi), developed by TiMiTech, a company formed by the Chinese Academy of Broadcasting Science. Announced in October 2006, it has been described as being similar to Europe’s DVB-SH standard for digital video broadcast from both satellites and terrestrial repeaters to handheld devices. …
                                                                                                                          Mobile TV: at least three years to take to maturity, preliminary [coming in 20]08 [XINHUANET.COM, Aug 14, 2006]: “<nicely and broadly covering the STiMi story then TMMB as well: > … T-MMB standard was developed under the auspices of the Ministry of information industry, which is Korea DMB standard as the basis for in-depth research and development of a standard, part of independent intellectual property rights. It is a broadcast system, is also a one way system. T-MMB advantages: first, compatibility, compatible Korea T-DMB technology easier to implement roaming. …
                                                                                                                          – which is really shown by the below illustration from this Aug’11 Norvegian research paper:

                                                                                                                          – Then 3 years later came Tug of war [China Daily, April 14, 2008] between SARFT and MIIT: “The format (T-MMB) was not strictly tested or undergo necessary trials and the standardization was manipulated by a small group of people,” claims Wang Xiaojie, head of SARFT’s Science and Technology Department. “The result is not relevant to us and we will not adopt the standard.” which resulted in the current situation when still the old NF9001 is the only T-MMB chip and Nufront is not listed even as a mobile TV chip provider while some other providers are covering now several standards with a single chip. The current best example is DiBcom whose “Octopus2s [launched on Sept 5, 2012] … single die System-On-Chip … supports all the active digital TV formats available in the World such as ISDB-T one-seg, full-seg, and sb for Japan and South America; DVB-T for Europe, Africa, South East Asia and Columbia; DAB/DAB+ digital radio for Europe; T-DMB for Korea, CMMB and CTTB for China; ATSC and ATSC M/H for North America.
                                                                                                                          – Media report published on the Nufront website: Nufront: Technological innovation-oriented computing and communications develop simultaneously [April 27, 2012]: “… “In fact, as early as in 2005, began in-depth study of wireless LAN technology, developed a new generation of ultra-high-speed wireless LAN technology EUHT before the 802.11n standard in data throughput, spectrum efficiency and economy have done better than the existing WiFi technology, “said Yang Yuxin. Outdoor communications 3G/4G network in the room it will rely on the ultra-high-speed local area network. “The mentioned EUHT He is a new generation of communications technology specifically for the short-range wireless communication environment specifically optimized design can short distance (100 m coverage, expandable to 500 m) to support a large number of high-speed connection, and to ensure the business real-time requirements, the physical layer peak rates up to 3.86Gbps, about 90% of the efficiency of the system can be widely used in the Internet of Things, digital applications in the home, digital city, has obvious advantages compared with existing wireless LAN technology. …Note: MIIT in China announced on February 13, 2012 that it has approved the UHT/EUHT standard specification (click for Chinese announcement). The announcement reads that MIIT has finalized the previously discussed UHT and EUHT layer standards; the document for download is simply a table naming the two finalized standards. The actual text of the standards will be published by the Peoples’ Post and Telecoms Publishing House.

                                                                                                                          And the latest report about Nufront: China fabless: Nufront ventures beyond tablet chips [EE Times, Nov 6, 2012]

                                                                                                                          … Where Nufront differs from other up and comers, though, is that the company, founded in 2004, has already been around the block. Its eight years in the industry have cemented closer ties with the Chinese government agencies. With that comes government funding. Not everything has worked out in its favor, though, and the company has a few scars to show for it.
                                                                                                                          A case in point is China’s mobile TV standard. Nufront, in the mid-2000’s, dabbled with the nascent digital mobile TV market, throwing itself behind one of China’s home-grown mobile TV standards, Terrestrial-Mobile Multimedia Broadcasting (T-MMB). However, just before the Beijing Olympics, China’s State Administration of Radio, Film and Television (SARFT) ended up supporting — and institutionalizing — a rival standard, China Mobile Multimedia Broadcasting (CMMB).
                                                                                                                          Nufront is also known for its deep involvement in developing China’s national wireless technology, called Enhanced Ultra-High Throughput (EUHT) WLAN. With government funding, Nufront has been working on the national standard for more than several years. While the world is yet to see EUHT commercialized, Rock Yang, vice president of marketing at Nufront, stressed that the project is still on, and its ultra-high throughput wireless technology – 1.2Gbit per second throughput – will be deployed in China’s vertical market in 2013.
                                                                                                                          Nufront today has about 700 employees, with a team of 400 engineers. Two hundred are software engineers, while 150 are working on hardware systems, and 50 are specifically focused on chipsets, according to the company.
                                                                                                                          Nufront’s strategy doesn’t stop at the apps processor. The company is rolling out its first-generation GSM/WCDMA 3G baseband chip, TeLink 7619. Calling it a “dual-modem platform,” the new chip incorporates digital RF, power management and baseband, according to the company. How this will fare against other GSM/WCDMA baseband chips from competitors is unknown. But Nufront hopes to offer a “complete smartphone solution” in 2013, by adding its baseband chip to NS115.
                                                                                                                          Yang made it clear that Nufront, during the second quarter this year, acquired some essential IPRs on WCDMA. The Chinese company paid $9.0 million to InterDigital, a company with broad wireless patent portfolio. However, it remains unclear what exactly Nufront got. InterDigital only confirms the deal in vague terms: “We did enter into a set of agreements with Nufront, and those agreements included the transfer of a certain number of patents as well as other elements.” InterDigital’s spokesman added, “Our practice is not to offer any comment on the specifics of patent transfers with partners.”
                                                                                                                          Separately, in June, Intel cut a deal to buy about a host of wireless technology patents from InterDigital for $375 million.
                                                                                                                          The “Internet of Things” is also in Nufront’s sights. The company believes its 3G modules could be particularly useful in the vertical market for Internet of Things applications.

                                                                                                                          Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2%

                                                                                                                          This is my conclusion after reviewing

                                                                                                                          • The ongoing trends in the commodity and premium brand ecosystems of Android devices:
                                                                                                                            – Smartphones
                                                                                                                            – Tablets

                                                                                                                          and

                                                                                                                          • The emerging new trends in the premium ecosystem of the Windows devices:
                                                                                                                            – Notebooks
                                                                                                                            – Smartphones

                                                                                                                          as reported by the most knowledgeable sources.

                                                                                                                          Updates: – ODMs see weaker profits from tablet business [DIGITIMES, March 26, 2013]

                                                                                                                          As Google and Amazon reportedly will release their next-generation 7-inch entry-level tablets in the near future, sources from the upstream supply chain have estimated that related ODMs’ profits from these tablets will be about 20% less than those from notebooks.
                                                                                                                          Since tablets have a simpler design than notebooks, the ODMs are only able to earn about US$9-10 for each tablet made, lower than US$13-20 for notebooks.
                                                                                                                          In addition, fewer components needed means that ODMs will have difficulties using their purchasing advantages to earn profits, and tablet brand vendors’ demand for specific components will also impact the makers’ profits, the sources noted.
                                                                                                                          Seeing weak growth in the notebook industry, most ODMs have turned to place their focuses on the tablet market and are competing aggressively for orders through price cuts, the sources said.

                                                                                                                          Wintel camp mulls measures to rekindle weakening notebook industry [DIGITIMES, Feb 21, 2013]

                                                                                                                          Suppliers within the Wintel camp are mulling to launch a series of measures, including price cuts for their products, in the second quarter of 2013 to rekindle the stymied notebook industry caused by growing popularity of tablets, according to industry sources.
                                                                                                                          The launch of Windows 8 has failed to ignite replacement demand for notebooks in the end markets, resulting in a prolonged inventory adjustment process at the supply chain that has been going on since the third quarter of 2012, the sources noted.
                                                                                                                          With market reports indicating that global tablet shipments are likely to reach 200-300 million units in 2013, including 150 million units in China and other emerging markets, notebook vendors will see their market share continue to be eroded by tablets, commented the sources.
                                                                                                                          While agreeing to the consensus that price-cutting will be the only way to stimulate notebook demand, related PC chip suppliers are urging the major players in the Wintel camp, mainly Intel and Microsoft, to take the lead in action so that the entire supply chain can follow.
                                                                                                                          The Wintel camp has always chosen to start cutting their product prices in the third quarter each year, noted the sources, but it would be too late to safeguard the notebook industry as well as its supply chain if Intel and Microsoft do not take actions till the third quarter this year.
                                                                                                                          Since Intel usually will cut significantly its CPU prices prior to the launch of new models, the planned launch of Haswell platform in June may persuade the chip giant to lower the quotes for its Ivy Bridge family CPUs earlier, the sources revealed.
                                                                                                                          But it remains to be seen if price cuts by Intel alone could stir up notebook replacement demand amid the squeezing-out effect triggered by the rise of tablets, mobile phones and other mobile Internet devices, commented the sources.

                                                                                                                          End of updates

                                                                                                                          Before reading the sections of this post corresponding to the above, do not forget to read my own analytical posts which are based on the new product directions and supporting SoC trends (and as such predicting the year 2013 market even better than the external analyses quoted here which are mainly based on supply chain trends and market changes observed already in 2012):
                                                                                                                          $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15 [Nov 9, 2012]
                                                                                                                          Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Nov 9, 2012]
                                                                                                                          The low priced, Android based smartphones of China will change the global market [Sept 10-26, 2012]
                                                                                                                          Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6 – Nov 13, 2012]
                                                                                                                          With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets [Nov 1, 2012]
                                                                                                                          Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
                                                                                                                          MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012]
                                                                                                                          China’s HW engineering lead: The Rockchip RK292 series (RK2928 and RK2926) example [Oct 27, 2012]
                                                                                                                          Nexus 7: Google wanted it in 4 months for $199/$245, ASUS delivered + Nexus Q (of Google’s own design and manufacturing) added for social streaming from Google Play to speakers and screen in home under Android device control [June 28, 2012]
                                                                                                                          Giving up the total OEM reliance strategy: the Microsoft Surface tablet [June 19 – July 30, 2012]
                                                                                                                          ASUS: We are the real transformers, not Microsoft [Oct 17, 2012]
                                                                                                                          Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
                                                                                                                          BUILD 2012: Notes on Day 1 and 2 Keynotes [Oct 31, 2012]
                                                                                                                          Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [Oct 28, 2012]
                                                                                                                          Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12, 2012]

                                                                                                                          Update: The sections of this post are somewhat taking into the account the most dramatic disruption in the whole history of ICT, what I am calling the ‘ALLWINNER PHENOMENON’ (all ‘Allwinner et al phenomenon’ sometimes when including Allwinner’s internal mainland China competitors such as Rockchip into account as well). EVERYBODY SHOULD BE AWARE of the fact, however, that even in the latest forecasts by bigname ICT market researchers the ‘Allwinner phenomenon’ is not taken into account at all. The two very recent updates from IDC given below should therefore be read with that in mind as the ‘Allwinner phenomenon’ will add hundreds of millions to those forecasts starting as early as in 2013. Especially the numbers for the tablets will be affected. To understand more about that please read my special posts given in a newly created blog about the ‘Allwinner phenonmenon’:
                                                                                                                          Allwinner A31 SoC is here with products and the A20 SoC is coming [Dec 10, 2012]
                                                                                                                          Is low-cost enough for global success? [Dec 5, 2012]
                                                                                                                          The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs [Dec 4, 2012]
                                                                                                                          $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India [Dec 4, 2012] from this alone 220 million additional tablets would have been delivered from 2013 to 2016
                                                                                                                          USD 99 Allwinner [Nov 30, 2012]
                                                                                                                          It’s a Strategic Inflection Point [Dec 1, 2012]

                                                                                                                          Update: HTC 1Q13 smartphone shipments to grow slower than expected, say sources [DIGITIMES, Dec 18, 2012]

                                                                                                                          Affected by the launch of iPhone 5 and rapidly declining smartphone prices in China, HTC reportedly has revamped its product roadmap for 2013 and is expected to see its smartphone shipments rise 10-15% sequentially in the first quarter of the year compared to a 20-30% growth projected previously, according to industry sources.

                                                                                                                          HTC has suspended development of a number of new models for 2013, reducing the visibility of its orders for handset components, the sources revealed.

                                                                                                                          HTC declined to comment on market speculation.

                                                                                                                          However, the industry watchers believe that HTC is heading for a bumpy road ahead, since shipments of its Windows Phone 8-based smartphones have not been as strong as expected, while Apple’s iPhone 5 and Samsung Electronics’ Galaxy III have continued to enjoy brisk sales.

                                                                                                                          In China, HTC is facing cut-throat competition from local white-box smartphone vendors and has been forced to enter the sub-CNY2,000 (US$321) segment, which runs counter to its established policy focusing mainly on the high-end sector, said the sources.

                                                                                                                          Update: Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew 27.1% in the Third Quarter, According to IDC [IDC press release, Dec 10, 2012]

                                                                                                                          image

                                                                                                                          The worldwide smart connected device market – a collective view of PCs, tablets, and smartphones – grew 27.1% year-over-year in the third quarter of 2012 (3Q12) reaching a record 303.6 million shipments valued at $140.4 billion dollars. Expectations for the holiday season quarter are that shipments will continue to reach record levels rising 19.2% over 3Q12 and 26.5% over the same quarter a year ago. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, 4Q12 shipments are expected to reach 362.0 million units with a market value of $169.2 billion dollars. Holiday season growth will be driven by tablets and smartphones, which are expected to grow 55.8% and 39.5% year-over-year respectfully, while PCs are expected to decline slightly from this quarter a year ago.

                                                                                                                          From a vendor perspective, Samsung maintained the top position in 3Q12 with 21.8% market share based on shipments. Apple, which ranked second overall in shipments, led all vendors in value with a total of $34.1 billion in 3Q12 and an average selling price (ASP) of $744 across all device categories. Following Samsung’s 21.8% share and Apple’s 15.1% share were Lenovo (7.0%), HP (4.6%), and Sony (3.6%). While Samsung, Apple, and Lenovo have all grown share over the past year, HP, which is virtually non-existent in the mobile space, has dropped its share from 7.4% in 3Q11 to 4.6% in 3Q12 with shipments declining -20.5% during that time.

                                                                                                                          “The battle between Samsung and Apple at the top of the smart connected device space is stronger than ever,” said Ryan Reith, program manager, Worldwide Mobile Device Trackers at IDC. “Both vendors compete at the top of the tablet and smartphone markets. However, the difference in their collective ASPs is a telling sign of different market approaches. The fact that Apple’s ASP is $310 higher than Samsung’s with just over 20 million fewer shipments in the quarter speaks volumes about the premium product line that Apple sells.”

                                                                                                                          Looking forward, IDC expects the worldwide smart connected device space will continue to surge well past the strong holiday quarter and predicts shipments to surpass 2.1 billion units in 2016 with a market value of $796.7 billion worldwide. IDC’s research clearly shows this to be a multi-device era, although market dynamics are shifting in terms of product category. In 2011, PC’s – a combination of desktop and portable PCs – accounted for 39.1% of the smart connected device market. By 2016 it is expected to drop to 19.9%. Smartphones will be the preferred product category with share growing from 53.1% in 2011 to 66.7% in 2016. Tablets will also grow significantly with share growing from 7.7% in 2011 to 13.4% in 2016. The shift in demand from the more expensive PC category to more reasonably priced smartphones and tablets will drive the collective market ASP from $534 in 2011 to $378 in 2016.

                                                                                                                          “Both consumers and business workers are finding the need for multiple ‘smart’ devices and we expect that trend to grow for several years, especially in more developed regions,” said Bob O’Donnell, program vice president, Clients and Displays. “The advent of cloud-based services is enabling people to seamlessly move from device to device, which encourages the purchase and usage of different devices for different situations.”

                                                                                                                          Top 5 Smart Connected Device Vendors, Shipments, and Market Share, Q3 2012 (shipments in millions)

                                                                                                                          Vendor

                                                                                                                          3Q12 Unit Shipments

                                                                                                                          3Q12 Market Share

                                                                                                                          3Q11 Unit Shipments

                                                                                                                          3Q11 Market Share

                                                                                                                          3Q12/3Q11 Growth

                                                                                                                          Samsung

                                                                                                                          66.1

                                                                                                                          21.8%

                                                                                                                          33.5

                                                                                                                          14.0%

                                                                                                                          97.5%

                                                                                                                          Apple

                                                                                                                          45.8

                                                                                                                          15.1%

                                                                                                                          33.1

                                                                                                                          13.9%

                                                                                                                          38.3%

                                                                                                                          Lenovo

                                                                                                                          21.1

                                                                                                                          7.0%

                                                                                                                          13.2

                                                                                                                          5.5%

                                                                                                                          60.0%

                                                                                                                          HP

                                                                                                                          14.0

                                                                                                                          4.6%

                                                                                                                          17.6

                                                                                                                          7.4%

                                                                                                                          -20.5%

                                                                                                                          Sony

                                                                                                                          11.0

                                                                                                                          3.6%

                                                                                                                          8.7

                                                                                                                          3.7%

                                                                                                                          25.4%

                                                                                                                          Other

                                                                                                                          145.6

                                                                                                                          48.0%

                                                                                                                          132.7

                                                                                                                          55.6%

                                                                                                                          9.7%

                                                                                                                          Total

                                                                                                                          303.6

                                                                                                                          100.0%

                                                                                                                          238.9

                                                                                                                          100.0%

                                                                                                                          27.1%

                                                                                                                          Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.

                                                                                                                          Smart Connected Device Market by Product Category, Shipments, Market Share, 2012-1016 (shipments in millions) 

                                                                                                                          Product Category

                                                                                                                          2016 Unit Shipments

                                                                                                                          2016 Market Share

                                                                                                                          2012 Unit Shipments

                                                                                                                          2012 Market Share

                                                                                                                          2016/2012 Growth

                                                                                                                          Desktop PC

                                                                                                                          151.0

                                                                                                                          7.2%

                                                                                                                          149.2

                                                                                                                          12.5%

                                                                                                                          1.2%

                                                                                                                          Portable PC

                                                                                                                          268.8

                                                                                                                          12.8%

                                                                                                                          205.1

                                                                                                                          17.2%

                                                                                                                          31.1%

                                                                                                                          Smartphone

                                                                                                                          1405.3

                                                                                                                          66.7%

                                                                                                                          717.5

                                                                                                                          60.1%

                                                                                                                          95.9%

                                                                                                                          Tablet

                                                                                                                          282.7

                                                                                                                          13.4%

                                                                                                                          122.3

                                                                                                                          10.2%

                                                                                                                          131.2%

                                                                                                                          Total

                                                                                                                          2107.8

                                                                                                                          100.0%

                                                                                                                          1194.0

                                                                                                                          100.0%

                                                                                                                          76.5%

                                                                                                                          Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.

                                                                                                                          Update: IDC Raises Tablet Forecast for 2012 and Beyond As iOS Picks Up Steam, Android Gains Traction, and Windows Finally Enters the Market [IDC press release, Dec 5, 2012]

                                                                                                                          image

                                                                                                                          A strong competitive landscape—including surging Android tablet shipments and robust demand for Apple’s new iPad mini—has led International Data Corporation (IDC) to increase its 2012 forecast for the worldwide tablet market to 122.3 million, up from its previous forecast of 117.1 million units. In the latest forecast update of the Worldwide Quarterly Tablet Tracker, IDC also raised its 2013 forecast number to 172.4 million units, up from 165.9 million units. And by 2016 worldwide shipments should reach 282.7 million units, up from a previous forecast of 261.4 million units.

                                                                                                                          “Tablets continue to captivate consumers, and as the market shifts toward smaller, more mobile screen sizes and lower prices points, we expect demand to accelerate in the fourth quarter and beyond,” said Tom Mainelli, research director, Tablets at IDC. “Android tablets are gaining traction in the market thanks to solid products from Google, Amazon, Samsung, and others. And Apple’s November iPad mini launch, along with its surprise refresh of the full-sized iPad, positions the company well for a strong holiday season.”

                                                                                                                          In addition to increasing the unit totals for 2013, IDC also updated its operating system splits for the year to reflect Android’s growing strength in the tablet market. IDC now expects Android’s worldwide tablet share to increase from 39.8% in 2011 to 42.7% for the full year of 2012. During that same time Apple’s share will slip from 56.3% in 2011 to 53.8% in 2012. Long term, IDC predicts Windows-based tablets (including Windows 8 and Windows RT) will grab share from both iOS and Android, growing from 1% of the market in 2011 to 2.9% in 2012, on its way to 10.3% in 2016.

                                                                                                                          “The breadth and depth of Android has taken full effect on the tablet market as it has for the smartphone space,” said Ryan Reith, program manager for IDC’s Mobile Device Trackers. “Android tablet shipments will certainly act as the catalyst for growth in the low-cost segment in emerging markets given the platform’s low barrier to entry on manufacturing. At the same time, top-tier companies like Samsung, Lenovo, and ASUS are all launching Android tablets with comparable specs, but offered at much lower price points.”

                                                                                                                          Once again, IDC’s increase in tablet shipments comes at the expense of eReaders. IDC lowered its forecast for eReaders for 2012 and beyond. While the front-lit eReader offerings from Amazon and Barnes & Noble have captured the interest of a subset of consumers who prefer a dedicated eReader, most buyers are gravitating toward multi-use tablet products and finding a ‘good enough’ reading experience on these traditional back-lit tablets. IDC now expects 2012 eReader shipments to top out at 19.9 million units, down from the 27.7 million units that shipped in 2011.

                                                                                                                          Tablet Operating Systems, Market Share Forecast and CAGR 2012-2016

                                                                                                                          Tablet OS

                                                                                                                          2012 Market Share

                                                                                                                          2016 Market Share

                                                                                                                          CAGR 2012 – 2016 (%)

                                                                                                                          iOS

                                                                                                                          53.8%

                                                                                                                          49.7%

                                                                                                                          20.9%

                                                                                                                          Android

                                                                                                                          42.7%

                                                                                                                          39.7%

                                                                                                                          21.0%

                                                                                                                          Windows

                                                                                                                          2.9%

                                                                                                                          10.3%

                                                                                                                          69.2%

                                                                                                                          Other

                                                                                                                          0.6%

                                                                                                                          0.3%

                                                                                                                          7.7%

                                                                                                                          Grand Total

                                                                                                                          100.0%

                                                                                                                          100.0%

                                                                                                                          23.3%

                                                                                                                          Source: IDC Worldwide Quarterly Tablet Tracker, December 5, 2012

                                                                                                                          Table Notes:

                                                                                                                          • Windows shipments include Windows RT, Windows 8, and Windows 7 tablets.
                                                                                                                          • Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.

                                                                                                                          The ongoing trends in the commodity
                                                                                                                          and premium brand ecosystems of Android devices

                                                                                                                          Smartphones

                                                                                                                          Motorola likely to bid farewell to Taiwan handset ODMs after Google sells plants to Flextronics [DIGITIMES, Dec 17, 2012]

                                                                                                                          The partnerships between Motorola Mobility and Taiwan-based handset ODMs such as Foxconn International Holdings (FIH) will begin to fade away, as Google, the parent company of Motorola, has signed an agreement to hand over Motorola’s manufacturing operations in Tianjin, China, and Jaguariuna, Brazil to Flextronics International, according to industry sources.

                                                                                                                          After the deal between Google and Flextronics is completed in the first half of 2013, Motorola will completely withdraw from the handset manufacturing industry, and instead will transform to a brand operator targeting mainly the mid-range to high-end smartphone segment, the sources indicated.

                                                                                                                          While the streamlining of Motorola’s operations comes as no surprise to Taiwan handset ODMs, Google’s decision to sell Motorola’s plants to Flextronics, instead of its long-tern partner FIH, has raised concerns among the industry.

                                                                                                                          Flextronics is purchasing the plants in exchange for orders from Motorola since the Singapore-based EMS giant has made little progress in gaining handset orders from Apple or major players in the Android or Windows Phone camps, the sources commented.

                                                                                                                          It is also no longer necessary for FIH to buy plants in exchange for orders, as the company has transferred from handset EMS operations to focus on smartphone ODM business, indicated the sources, adding that FIH has also managed to establish partnerships with a number of major players in the smartphone sector.

                                                                                                                          However, a deepened cooperation between Motorola and Flextronics may affect the handset component supply chain in Taiwan, the sources warned.

                                                                                                                          Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]

                                                                                                                          Android will further solidify its market leadership in the smartphone operating system race in 2013, thanks to a broad support from smartphone vendors and the rollout of a wide range of low-priced models for sale in emerging markets. Shipments of Android phones are expected to top 600 million units or over 70% of global smartphone shipments in 2013, Digitimes Research estimates.

                                                                                                                          iOS will trail Android to take the number two position in the OS ratings with a 20% share, while other smartphone platforms will share the remaining 10%.

                                                                                                                          Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share, followed by RIM’s BlackBerry devices with a 3.7% share, Digitimes Research estimates. Other platforms, including Tizen and Firefox, will take up a portion lower than 1%.

                                                                                                                          Digitimes Research: Global smartphone shipments to grow 30% in 2013 [DIGITIMES Research, Nov 19, 2012]

                                                                                                                          Global smartphone shipments are expected to grow 30% to 865 million units in 2013, accounting for 43.9% of total handset shipments in the year, Digitimes Research has estimated.

                                                                                                                          Factors including relationships between platform providers and hardware makers, support from telecom carriers for new models, and key developments or decisions by some vendors will affect smartphone sales in 2013, Digitimes Research believes.

                                                                                                                          Google is expected to further strengthen its control over the Android ecosystem and its production partners, which may limit the development of other platforms or variant Android models.

                                                                                                                          Microsoft’s launch of own-brand smartphones may result in a reduction in support for the Window Phone platform by hardware vendors, which should otherwise serve as a key factor to push for the growth of the Window Phone to become a third major platform in the segment.

                                                                                                                          While Amazon is likely to enter the smartphone market, 2013 may be crucial a year for Nokia and RIM (Research in Motion) to make vital decisions concerning their smartphone businesses.

                                                                                                                          Demand for high-end smartphone models in Western Europe will be affected seriously by reduced government budgets and weak consumption in the region because of the prolonged financial crisis.

                                                                                                                          However, smartphones’ growing penetration in China, Russia, India, Indonesia, South America and other emerging markets will serve as a growth driver for global smartphone shipments in 2013, Digitimes Research believes.

                                                                                                                          Google, Amazon and other vendors in China to lead pricing in low-cost smartphone segment, say sources [DIGITIMES , Nov 5, 2012]

                                                                                                                          While sales of low-cost smartphones are expected to continue growing in the next few years, Google, Amazon and other Internet service companies in China may lead price competition in the segment, according to industry sources.

                                                                                                                          Shipments of low-cost smartphones, defined as models with a selling price of less than US$150, are forecast to double every year from 2010 to 2016, increasing from 4.5 to 311 million units, according to NPD DisplaySearch.

                                                                                                                          Most of the demand (60%) is from the Asia Pacific region, where a large majority of component suppliers and manufacturing factories are located – providing both time and cost savings, said DisplaySearch.

                                                                                                                          In China, the trend for telecom carriers to continue cooperating with chipset suppliers, handset design houses and handset vendors for the launch low-priced smatphone models will continue for a while, the sources noted.

                                                                                                                          Vendors including Huawei Device, ZTE, Lenovo and Coolpad have emerged as the leading group of the smartphone suppliers in China through the offerings of low-cost models, but most of vendors has suffered losses or seen the profits of their handset business decline due to fierce price competition in the segment, the sources revealed.

                                                                                                                          Lenovo’s handset business unit is still operating in red, and Huawei and Coolpad have seen their profits decline, while ZTE and TCL have seen their handset businesses swing from profitability to loss, the sources indicated.

                                                                                                                          In order to stemming losses, or improving profitability, most branded smartphone vendors in China have been trying to expand their share in the mid- and high-end segment, while pushing their sales through local retain channels or export sales.

                                                                                                                          But other China-based smartphone vendors such as Xiaomi Technology, Internet service companies including Baidu and Shada Interactive Entertainment, as well as online retail giant 360buy, are likely to continue to adopt aggressive price strategies to pushing sales of their own models, said the sources.

                                                                                                                          In the global market, the cooperation between Google and LG Electronics for the launch of Nexus 4 at prices ranging from US$299-349 is also expected to lead to the proliferation of more low-priced Android smartphone models, the sources indicated.

                                                                                                                          Amazon, which has been aggressive in the tablet segment, is expected to release its first smartphone model in 2013 with the same price tactics, which is likely to further drive down the prices of smartphones, commented the sources.

                                                                                                                          Digitimes Research: Nexus 4 to be popular in prepaid SIM card and telecom retail channels [DIGITIMES Research, Nov 7, 2012]

                                                                                                                          Google’s Nexus 4, which comes with a 4.7-inch 720p HD display and Qualcomm quad-core Snapdragon S4 processor, is expected to become a popular model in the prepaid SIM card segment as well as in telecom retail channels for unlocked subscribers, according to Digitimes Research.

                                                                                                                          With its high hardware specifications and pricing of US$299 for the 8GB version and US$349 for the 16GB version, the Nexus 4 will cause price pressure on other comparable models rolled by rival brands.

                                                                                                                          Sales of Windows phones are expected to grow 250% in 2013 due in part to support from telecom carriers which are seeking a third platform other than Android or iOS. However, Android will continue to lead the market with a wide margin, Digitimes Research said.

                                                                                                                          Google aggressive pricing for Nexus 4 smartphone to affect sales of other brands [DIGITIMES, Oct 30, 2012]

                                                                                                                          Google’s pricing of US$299-349 for its newly released 4.7-inch, quad-core Nexus 4 smartphone is lower than market expectations, and thus could affect the sales of Android-based smartphones launched by other branded vendors, according to industry sources.

                                                                                                                          Prior to the release of the Nexus 4 in cooperation with LG Electronics, Google had cooperated with HTC and Samsung Electronics, respectively, for the launch of three generations of Nexus smartphones with prices ranging from US$500-700.

                                                                                                                          The Nexus 4 will enjoy the advantage in pricing even compared to the latest quad-core Android models rolled out by other vendors, indicated the sources, noting that Asustek Computer’s 4.7-inch Padfone 2 is available for US$600, while China-based Xiaomi Technology’s second-generation Xiaomi phone is priced at CNY1,999 (US$320).

                                                                                                                          Other Android-based smartphone vendors, including HTC, Sony Mobile Communications, Huawei Device, ZTE and even Motorola Mobility, all are likely to adjust their price strategies, since chances are high that the Nexus 4 will make a strong impact on the smartphone market, commented the sources.

                                                                                                                          China market: Nexus 4 pricing to affect sales, prices of other brands, says report [DIGITIMES, Nov 7, 2012]

                                                                                                                          The aggressive pricing strategy adopted by Google for its Nexus 4 may affect sales of Xiaomi smartphones in China and may also force other brands including Samsung Electronics, Motorola and HTC to lower the prices of their offerings in China, according to a China-based 21st Century Business Herald report.

                                                                                                                          The price of US$299 (CNY1,890) for the 8G version of the Nexus 4 is more competitive than Xiaomi’s next-generation quad-core smartphone which is available at CNY1,999, the paper noted.

                                                                                                                          Xiaomi is selling its first quad-core model below its BOM of CNY2,350 and will limit initial sales of the model to 50,000 units only, said the paper, which added that Xiaomi aims to ramp up volumes to 250,000 units to bring down the BOM when it begins to offer the second round of sales in mid-November.

                                                                                                                          Although the Nexus is not yet available in China, consumers may hesitate to pick up the quad-core Xiaomi smartphones because they have to wait for several months before Xiaomi will begin delivering the devices, said the paper.

                                                                                                                          China market: Coolpad hopes to regain mid-range, high-end smartphone share [DIGITIMES , Nov 7, 2012]

                                                                                                                          China-based handset maker Coolpad hopes to re-enter the mid-range and high-end smartphone market in China by introducing smartphone products with China Mobile that will be priced above CNY5,000/unit (US$800/unit).

                                                                                                                          In the recent years, Coolpad has been focusing on smartphones at the price range of CNY1,000/unit by cooperating with China’s three telecom service providers. Entry-level and mid-range models have accounted for 85% of Coolpad’s total shipments. The firm recently introduced a new model, Coolpad 9960 (Da Guan HD), with a 4.7-inch screen, Nvidia Tegra 3 quad-core processor, and a 13-megapixel front camera. The model will be priced above CNY5,000/unit.

                                                                                                                          Currently, China’s mid-range and high-end smartphone markets have been dominated by international brands such as Apple, HTC, Motorola, and Sony. Coolpad has been the only local brand that has a relatively strong market share.

                                                                                                                          According to industry sources, in 2012, Coolpad increased investment in R&D of high-end products by 20% on year and formed an R&D team of 800 staff to strengthen its high-end product line.

                                                                                                                          Lenovo, Huawei, ZTE faced with challenges to reach quarterly shipments of 10 million smartphones, say Taiwan makers [DIGITIMES , Nov 5, 2012]

                                                                                                                          A total of 60 million smartphones were shipped to the China market in the third quarter of 2012, and Lenovo, Huawei and ZTE shipped nine million units, 8.5 million units and 7.5 million units, respectively, with a combined market share of 41.7%, according to DRAMeXchange under consulting company TrendForce.

                                                                                                                          Except for Apple and Samsung Electronics, other international vendors including HTC, Sony Mobile Communications, LG Electronics, Nokia have not been able to attain quarterly shipments of 10 million smartphones, the sources indicated. Lenovo, Huawei and ZTE stand a chance to ship 10 million smartphones a quarter if they can strengthen their branding operations, marketing and product lines of mid-range and high-end models in overseas markets, the sources pointed out.

                                                                                                                          Lenovo has focused on entry-level smartphones priced below CNY1,500 (US$240) and relied too much on the domestic market, the sources indicated. In comparison with Lenovo, Huawei and ZTE have the advantage of cooperation with mobile telecom carriers in many countries, but their brand image is not strong enough for marketing mid-range and high-end smartphones, the sources pointed out.

                                                                                                                          PC vendors recommended to target niche smartphone market to avoid direct competition [DIGITIMES , Oct 3, 2012]

                                                                                                                          Branded PC vendors including Hewlett-Packard (HP) and Asustek Computer, which plan to reignite their smartphone businesses, are recommended to offer models with strong application platforms, sleek product design and integrated cloud computing capabilities targeting niche markets, while avoiding direct competition with smartphone vendors, according to sources at Taiwan’s handset supply chain.

                                                                                                                          Among the leading brands, HP, Dell and Asustek have not launched new handsets for some time, while Acer has made little progress in the sector although it has continued rolling out new phones, indicated the sources.

                                                                                                                          Lenovo’s performance has been exceptional, taking the second-ranked title in China’s smartphone market by optimizing an array of entry-level models priced at around CNY1,000 (US$158).

                                                                                                                          The reason major branded PC vendors are considering a comeback to the smartphone market hinges on emerging business opportunities that are anticipated to come along with the launch of Windows 8. They are hoping that sales of Windows 8-based PCs will help promote the sale of Windows Phone 8 smartphones as well.

                                                                                                                          Even so, prospects are still slim for PC brands to make a strong presence in the smartphone market, given that Apple and Samsung Electronics are currently the top-2 vendors dominating the segment, while other smartphone brands including Nokia, RIM, Sony Mobile Communications, Motorola Mobility are lagging behind with heavy losses, the sources commented.

                                                                                                                          Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]

                                                                                                                          The worldwide mobile phone market is forecast to grow 1.4% year over year in 2012, the lowest annual growth rate in three years despite a projected record number of smartphone shipments in the high-volume holiday season. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors will ship more than 1.7 billion mobile phones this year. In 2016, IDC forecasts 2.2 billion mobile phones will be shipped to the channel.

                                                                                                                          Global smartphone volume in the fourth quarter of 2012 (4Q12) is expected to reach 224.5 million units, representing 39.5% year-over-year growth due primarily to strong consumer demand. For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units. Strong smartphone growth is a result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets where carriers resell the majority of smartphones, as well as a growing array of sub-US$250 smartphones in emerging markets.

                                                                                                                          “Sluggish economic conditions worldwide have cast a pall over the mobile phone market this year,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “However, the fourth quarter will be relatively bright due in part to sales of high-profile smartphones, such as the iPhone 5 and Samsung’s Galaxy S3, in addition to lower-cost Android-powered smartphones shipped to China and other high-growth emerging markets.”

                                                                                                                          Smartphone Operating Systems

                                                                                                                          “Underpinning the worldwide smartphone market is a constantly shifting mobile operating system landscape,” added Ramon Llamas, research manager with IDC’s Mobile Phone team. “Android is expected to stay in front, but we also expect it to be the biggest target for competing operating systems to grab market share. At the same time, Windows Phone stands to gain the most market share as its smartphone and carrier partners have gained valuable experience in selling the differentiated experience Windows Phone has to offer. What bears close observation is how BlackBerry’s new platform, BlackBerry 10, and multiple versions of Linux will affect the market once the devices running these systems are available.”

                                                                                                                          IDC forecasts Android to be the clear leader in the smartphone mobile operating system race, thanks in large part to a broad selection of devices from a wide range of partners. Samsung is the leading Android smartphone seller though resurgent smartphone vendors LG Electronics and Sony, both of which cracked the top five smartphone vendors during 3Q12, are not to be overlooked. IDC believes the net result of this will be continued double-digit growth throughout the forecast period.

                                                                                                                          iOS will maintain its position as the clear number two platform behind Android at the end of 2012 and throughout the forecast. The popularity of the iPhone across multiple markets will drive steady replacements and additional carrier partners will help Apple grow iOS volume. However, the high price point of the iPhone relative to other smartphones will make it cost prohibitive for some users within many emerging markets. In order to maintain current growth rates, Apple will need to examine the possibility of offering less expensive models, similar to its iPod line. Until that happens, IDC forecasts iOS to ship lower volumes than Android.

                                                                                                                          The BlackBerry OS will grow slowly but largely maintain share over the coming years following the BlackBerry 10 launch next year. The new operating system and devices will be valued by some longtime BlackBerry fans, particularly those who have waited for the new OS as Research In Motion delayed its release. This will allow the company to maintain pockets of strength in higher-growth emerging markets such as Indonesia and various Latin American countries. But, as with many other new platforms, the success of BB 10 will be partly dependent upon channel advocacy, like sales associates who can effectively tell the BlackBerry story.

                                                                                                                          Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.

                                                                                                                          Linux will trail the market leaders throughout our forecast though it is expected to be the dark horse of the forecast. K-Touch has quietly built its Linux volumes this year while Haier recently released its first Linux smartphones. In addition, multiple platforms are expected to announce and launch their Linux-based smartphones in 2013, including Samsung’s Tizen and Jolla’s SailFish. Benefiting these platforms are their ties to previous platforms from the LiMo Foundation and Nokia’s MeeGo, which could lead to greater developer interest.

                                                                                                                          Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016

                                                                                                                          Smartphone OS

                                                                                                                          2012 Market Share

                                                                                                                          2016 Market Share

                                                                                                                          CAGR 2012 – 2016 (%)

                                                                                                                          Android

                                                                                                                          68.3%

                                                                                                                          63.8%

                                                                                                                          16.3%

                                                                                                                          iOS

                                                                                                                          18.8%

                                                                                                                          19.1%

                                                                                                                          18.8%

                                                                                                                          BlackBerry OS

                                                                                                                          4.7%

                                                                                                                          4.1%

                                                                                                                          14.6%

                                                                                                                          Windows Phone

                                                                                                                          2.6%

                                                                                                                          11.4%

                                                                                                                          71.3%

                                                                                                                          Linux

                                                                                                                          2.0%

                                                                                                                          1.5%

                                                                                                                          10.5%

                                                                                                                          Others

                                                                                                                          3.6%

                                                                                                                          0.1%

                                                                                                                          -100.0%

                                                                                                                          Total

                                                                                                                          100.0%

                                                                                                                          100.0%

                                                                                                                          18.3%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012

                                                                                                                          image

                                                                                                                          Android Marks Fourth Anniversary Since Launch with 75.0% Market Share in Third Quarter, According to IDC [IDC press release, Nov 1, 2012]

                                                                                                                          The Android smartphone operating system was found on three out of every four smartphones shipped during the third quarter of 2012 (3Q12). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, total Android smartphone shipments worldwide reached 136.0 million units, accounting for 75.0% of the 181.1 million smartphones shipped in 3Q12. The 91.5% year-over-year growth was nearly double the overall market growth rate of 46.4%.

                                                                                                                          “Android has been one of the primary growth engines of the smartphone market since it was launched in 2008,” said Ramon Llamas, research manager, Mobile Phones at IDC. “In every year since then, Android has effectively outpaced the market and taken market share from the competition. In addition, the combination of smartphone vendors, mobile operators, and end-users who have embraced Android has driven shipment volumes higher. Even today, more vendors are introducing their first Android-powered smartphones to market.”

                                                                                                                          “The share decline of smartphone operating systems not named iOS since Android’s introduction isn’t a coincidence,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The smartphone operating system isn’t an isolated product, it’s a crucial part of a larger technology ecosystem. Google has a thriving, multi-faceted product portfolio. Many of its competitors, with weaker tie-ins to the mobile OS, do not. This factor and others have led to loss of share for competitors with few exceptions.”

                                                                                                                          Mobile Operating System Highlights

                                                                                                                          Android, having topped the 100 million unit mark last quarter, reached a new record level in a single quarter. By comparison, Android’s total volumes for the quarter were greater than the total number of smartphones shipped in 2007, the year that Android was officially announced. Samsung once again led all vendors in this space, but saw its market share decline as numerous smaller vendors increased their production.

                                                                                                                          iOS was a distant second place to Android, but was the only other mobile operating system to amass double-digit market share for the quarter. The late quarter launch of the iPhone 5 and lower prices on older models prevented total shipment volumes from slipping to 3Q11 levels. But without a splashy new OS-driven feature like Siri in 2011 and FaceTime in 2010, the iPhone 5 relied on its larger, but not wider, screen and LTE connectivity to drive growth.

                                                                                                                          BlackBerry‘s market share continued to sink, falling to just over 4% by the end of the quarter. With the launch of BlackBerry 10 yet to come in 2013, BlackBerry will continue to rely on its aging BlackBerry 7 platform, and equally aging device line-up. Still, demand for BlackBerry and its wildly popular BBM service is strong within multiple key markets worldwide, and the number of subscribers continues to increase.

                                                                                                                          Symbian posted the largest year-on-year decline of the leading operating systems. Nokia remains the largest vendor still supporting Symbian, along with Japanese vendors Fujitsu, Sharp, and Sony. Each of these vendors is in the midst of transitioning to other operating systems and IDC believes that they will cease shipping Symbian-powered smartphones in 2013. At the same time, the installed base of Symbian users will continue well after the last Symbian smartphone ships.

                                                                                                                          Windows Phone marked its second anniversary with a total of just 3.6 million units shipped worldwide, fewer than the total number of Symbian units shipped. Even with the backing of multiple smartphone market leaders, Windows Phone has yet to make a significant dent into Android’s and iOS’s collective market share. That could change in 4Q12, when multiple Windows Phone 8 smartphones will reach the market.

                                                                                                                          Linux volume declined for the third straight quarter as did its year-over-year growth. Samsung accounted for the majority of shipments once again, but like most other vendors competing with Linux-powered smartphones, most of its attention went towards Android instead. Still, that has not deterred other vendors from experimenting, or at least considering the open-source operating system, as multiple reports of Firefox, Sailfish, and Tizen plan to release new Linux-based experiences in the future.

                                                                                                                          Top Six Smartphone Mobile Operating Systems, Shipments, and Market Share, Q3 2012 (Preliminary) (Units in Millions)

                                                                                                                          Operating System

                                                                                                                          3Q12 Shipment Volumes

                                                                                                                          3Q12 Market Share

                                                                                                                          3Q11 Shipment Volumes

                                                                                                                          3Q11 Market Share

                                                                                                                          Year-Over-Year Change

                                                                                                                          Android

                                                                                                                          136.0

                                                                                                                          75.0%

                                                                                                                          71.0

                                                                                                                          57.5%

                                                                                                                          91.5%

                                                                                                                          iOS

                                                                                                                          26.9

                                                                                                                          14.9%

                                                                                                                          17.1

                                                                                                                          13.8%

                                                                                                                          57.3%

                                                                                                                          BlackBerry

                                                                                                                          7.7

                                                                                                                          4.3%

                                                                                                                          11.8

                                                                                                                          9.5%

                                                                                                                          -34.7%

                                                                                                                          Symbian

                                                                                                                          4.1

                                                                                                                          2.3%

                                                                                                                          18.1

                                                                                                                          14.6%

                                                                                                                          -77.3%

                                                                                                                          Windows Phone 7/ Windows Mobile

                                                                                                                          3.6

                                                                                                                          2.0%

                                                                                                                          1.5

                                                                                                                          1.2%

                                                                                                                          140.0%

                                                                                                                          Linux

                                                                                                                          2.8

                                                                                                                          1.5%

                                                                                                                          4.1

                                                                                                                          3.3%

                                                                                                                          -31.7%

                                                                                                                          Others

                                                                                                                          0.0

                                                                                                                          0.0%

                                                                                                                          0.1

                                                                                                                          0.1%

                                                                                                                          -100.0%

                                                                                                                                     

                                                                                                                          Totals

                                                                                                                          181.1

                                                                                                                          100.0%

                                                                                                                          123.7

                                                                                                                          100.0%

                                                                                                                          46.4%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
                                                                                                                          Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.

                                                                                                                          Android Smartphone Shipments and Market Share, 2008 – 2012 YTD (Units in Millions)

                                                                                                                           

                                                                                                                          2008

                                                                                                                          2009

                                                                                                                          2010

                                                                                                                          2011

                                                                                                                          2012 YTD

                                                                                                                          Android Total Unit Shipments

                                                                                                                          0.7

                                                                                                                          7.0

                                                                                                                          71.1

                                                                                                                          243.4

                                                                                                                          333.6

                                                                                                                          Android Market Share

                                                                                                                          0.5%

                                                                                                                          4.0%

                                                                                                                          23.3%

                                                                                                                          49.2%

                                                                                                                          68.2%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
                                                                                                                          Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.

                                                                                                                          Gartner Says Worldwide Sales of Mobile Phones Declined 3 Percent in Third Quarter of 2012; Smartphone Sales Increased 47 Percent [Gartner press release, Nov 14, 2012]

                                                                                                                          Samsung Extended Its Lead in the Smartphone Market Widening the Gap with Apple

                                                                                                                          Worldwide sales of mobile phones to end users reached almost 428 million units in the third quarter of 2012, a 3.1 percent decline from the third quarter of 2011, according to Gartner, Inc. Smartphone sales accounted for 39.6 percent of total mobile phone sales, as smartphone sales increased 46.9 percent from the third quarter of 2011. 

                                                                                                                          While the mobile phone market declined year-on-year, Gartner analysts said there were positive signs for the industry during the third quarter. 

                                                                                                                          “After two consecutive quarter of decline in mobile phone sales, demand has improved in both mature and emerging markets as sales increased sequentially,” said Anshul Gupta, principal research analyst at Gartner. “In China, sales of mobile phones grew driven by sales of smartphones, while demand of feature phones remained weak. In mature markets, we finally saw replacement sales pick up with the launch of new devices in the quarter.” 

                                                                                                                          Smartphones continued to fuel sales of mobile phones worldwide with sales rising to 169.2 million units in the third quarter of 2012. The smartphone market was dominated by Apple and Samsung. “Both vendors together controlled 46.5 percent of smartphone market leaving a handful of vendors fighting over a distant third spot,” said Mr. Gupta. 

                                                                                                                          Nokia slipped from No. 3 in the second quarter of 2012 to No. 7 in smartphone sales in the third quarter of 2012. RIM moved to the No. 3 spot with HTC not far behind, at No. 4. “Both HTC and RIM have seen their sales declining in past few quarters, and the challenges might prevent them from holding on to their current rankings in coming quarters,” added Mr. Gupta. 

                                                                                                                          While seasonality in the fourth quarter of 2012 will help end-of-year mobile phone sales to end users, Gartner analysts said that there will be a lower-than-usual boost from the holiday season. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents. 

                                                                                                                          Samsung’s mobile phones sales continued to accelerate, totaling almost 98 million units in the third quarter of 2012 (see Table 1), up 18.6 percent year-on-year. Samsung saw strong demand for Galaxy smartphones across different price points, and it further widened the gap with Apple in the smartphone market, selling 55 million smartphones in the third quarter of 2012. It commanded 32.5 percent of the global smartphone market in the third quarter of 2012. 

                                                                                                                          Table 1
                                                                                                                          Worldwide Mobile Device Sales to End Users by Vendor in 3Q12 (Thousands of Units)

                                                                                                                          Company

                                                                                                                          3Q12

                                                                                                                          Units

                                                                                                                          3Q12 Market Share (%)

                                                                                                                          3Q11

                                                                                                                          Units

                                                                                                                          3Q11 Market Share (%)

                                                                                                                          Samsung

                                                                                                                          97,956.8

                                                                                                                          22.9

                                                                                                                          82,612.2

                                                                                                                          18.7

                                                                                                                          Nokia

                                                                                                                          82,300.6

                                                                                                                          19.2

                                                                                                                          105,353.5

                                                                                                                          23.9

                                                                                                                          Apple

                                                                                                                          23,550.3

                                                                                                                          5.5

                                                                                                                          17,295.3

                                                                                                                          3.9

                                                                                                                          ZTE

                                                                                                                          16,654.2

                                                                                                                          3.9

                                                                                                                          14,107.8

                                                                                                                          3.2

                                                                                                                          LG Electronics

                                                                                                                          13,968.8

                                                                                                                          3.3

                                                                                                                          21,014.6

                                                                                                                          4.8

                                                                                                                          Huawei Device

                                                                                                                          11,918.9

                                                                                                                          2.8

                                                                                                                          10,668.2

                                                                                                                          2.4

                                                                                                                          TCL Communication

                                                                                                                          9,326.7

                                                                                                                          2.2

                                                                                                                          9,004.7

                                                                                                                          2.0

                                                                                                                          Research in Motion

                                                                                                                          8,946.8

                                                                                                                          2.1

                                                                                                                          12,701.1

                                                                                                                          2.9

                                                                                                                          Motorola

                                                                                                                          8,562.7

                                                                                                                          2.0

                                                                                                                          11,182.7

                                                                                                                          2.5

                                                                                                                          HTC

                                                                                                                          8,428.6

                                                                                                                          2.0

                                                                                                                          12,099.9

                                                                                                                          2.7

                                                                                                                          Others

                                                                                                                          146,115.1

                                                                                                                          34.2

                                                                                                                          145,462.2

                                                                                                                          32.9

                                                                                                                          Total

                                                                                                                          427,729.5

                                                                                                                          100.0

                                                                                                                          441,502.2

                                                                                                                          100.0

                                                                                                                          Source: Gartner (November 2012)

                                                                                                                          Nokia’s mobile phone sales declined 21.9 percent in the third quarter of 2012, but overall sales at 82.3 million were better than Gartner’s early estimate, largely driven by increased sales of the Asha full touch range. Nokia had a particularly bad quarter with smartphone sales, and it tumbled to the No. 7 worldwide position with 7.2 million smartphones sold in the third quarter. The arrival of the new Lumia devices on Windows 8 should help to halt the decline in share in the fourth quarter of 2012, although it won’t be until 2013 to see a significant improvement in Nokia’s position

                                                                                                                          Apple’s sales to end users totaled 23.6 million units in the third quarter of 2012, up 36.2 percent year-on-year. “We saw inventory built up into the channel as Apple prepared for the coming holiday season, global expansions and the launch into China in the fourth quarter of 2012,” said Mr. Gupta. With iPhone 5 launching in more territories in the fourth quarter of 2012, including China, and the upcoming holiday season Gartner analysts expect Apple will have its traditionally strongest quarter. 

                                                                                                                          In the smartphone market, Android continued to increase its market share, up 19.9 percentage points in the third quarter of 2012. Although RIM lost market share, it climbed to the No. 3 position as Symbian is nearing the end of its lifecycle. There was also channel destocking in preparation of new device launches for RIM, which resulted into 8.9 million sales to end users in the third quarter of 2012. With the launch of iPhone 5, Gartner analysts expect iOS share will grow strongly in the fourth quarter of 2012 because users held on to their replacements in many markets ahead of the iPhone 5 wider roll out. Windows Phone’s share weakened quarter-on-quarter as the Windows Phone 8 launch dampened demand of Windows Phone 7 devices. 

                                                                                                                          Table 2
                                                                                                                          Worldwide Mobile Device Sales to End Users by Operating System in 3Q12 (Thousands of Units)

                                                                                                                          Operating System

                                                                                                                          3Q12

                                                                                                                          Units

                                                                                                                          3Q12 Market Share (%)

                                                                                                                          3Q11

                                                                                                                          Units

                                                                                                                          3Q11 Market Share (%)

                                                                                                                          Android

                                                                                                                          122,480.0

                                                                                                                          72.4

                                                                                                                          60,490.4

                                                                                                                          52.5

                                                                                                                          iOS

                                                                                                                          23,550.3

                                                                                                                          13.9

                                                                                                                          17,295.3

                                                                                                                          15.0

                                                                                                                          Research In Motion

                                                                                                                          8,946.8

                                                                                                                          5.3

                                                                                                                          12,701.1

                                                                                                                          11.0

                                                                                                                          Bada

                                                                                                                          5,054.7

                                                                                                                          3.0

                                                                                                                          2,478.5

                                                                                                                          2.2

                                                                                                                          Symbian

                                                                                                                          4,404.9

                                                                                                                          2.6

                                                                                                                          19,500.1

                                                                                                                          16.9

                                                                                                                          Microsoft

                                                                                                                          4,058.2

                                                                                                                          2.4

                                                                                                                          1,701.9

                                                                                                                          1.5

                                                                                                                          Others

                                                                                                                          683.7

                                                                                                                          0.4

                                                                                                                          1,018.1

                                                                                                                          0.9

                                                                                                                          Total

                                                                                                                          169,178.6

                                                                                                                          100.0

                                                                                                                          115,185.4

                                                                                                                          100.0

                                                                                                                          Source: Gartner (November 2012) 

                                                                                                                          Additional information can be found in the Gartner report “Market Share: Mobile Phones by Region and Country, 3Q12.” The report is available on Gartner’s website at http://www.gartner.com/resId=2236115.

                                                                                                                           


                                                                                                                          Tablets

                                                                                                                          Digitimes Research: Global tablet shipments to surpass that of notebooks in 2013 [DIGITIMES Research, Nov 19, 2012] 

                                                                                                                          Digitimes Research expects global tablet shipments to reach 210 million units in 2013, up 38.3% on year and surpass those of notebook for the first time, with branded tablet shipments to account for 140 million units, according to Digitimes Research senior analyst James Wang.
                                                                                                                          [Compare this to the notebook shipment forecast by Digitimes Research of 192 million units in 2012 expected to drop to 189 million units in 2013. See additional details of this forecast below in Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013.]

                                                                                                                          In 2013, Google is expected to maintain its momentum from the Nexus series products and become the second largest tablet brand vendor worldwide with shipments of 19 million units. Apple will remain the largest tablet vendor worldwide, but its share in the global branded tablet shipments will drop to only 55.6% [i.e. 78 million units], down from more than 60% in 2012, and 37.4% in total tablet shipments (including white-box models).

                                                                                                                          With surging shipment growth for white-box tablets, Android is expected to become the largest platform in the tablet market, surpassing iOS. In 2013, Digitimes Research expects Android-based tablet shipments including white-box and branded models, to reach 121 million units, up 40.2% on year. [With the global 210 millions and branded 140 millions the white-box tablet shipments are expected to grow to 70 million units in 2013 vs. 50 millions this year. Therefore the branded Android based-tablets to become 51 millions, and as the Nexus tablets are said here to become 19 millions there will be 32 millions other branded Android tablets sold in 2013 .]

                                                                                                                          Digitimes Research also expects global tablet shipments will reach 320 million units in 2015 with branded tablets to account for 220 million units and white-box models to account for 100 million units.

                                                                                                                          Digitimes Research: Global Tablet Market to Enjoy Strong Shipment Growth in 4Q12 [DIGITIMES Research, Nov 13, 2012]

                                                                                                                          Global tablet shipments from major brands worldwide are expected to reach 40.93 million units in the fourth quarter of 2012, up 72.7% sequentially and 89.7% on year, according to Digitimes Research senior analyst James Wang.

                                                                                                                          As for the tablet vendor rankings in the quarter, Apple will remain as the largest vendor worldwide, while Amazon is expected to return as the second-largest and Google will rank third with assistance from its Nexus 7 and Nexus 10. Microsoft will rank fourth, Samsung Electronics fifth, and Barnes & Noble sixth. Asustek, Lenovo and Acer will rank seventh, eighth and ninth, respectively, Wang noted.

                                                                                                                          As for the tablet processor supplier rankings, Texas Instruments (TI) will return as the second-largest with Nvidia at third. Intel will also be ranked for the first time due to Windows 8.

                                                                                                                          Taiwan makers are expected to ship 36.6 million tablets combined in the fourth quarter, up 82.3% sequentially and 86.7% on year, with the volume accounting for 89% of global tablet shipments. Foxconn Electronics (Hon Hai Precision Industry) will be the largest tablet maker, followed by Quanta Computer, Pegatron Technology, Wistron and Compal Electronics.

                                                                                                                          Digitimes Research estimates that global branded tablet shipments will reach 104 million units in 2012, up 64% on year, with iPad accounting for 63% of the volume, down 2pp on year, while both Android and Windows will see their proportions increase.

                                                                                                                          In comparison the white-box tablet shipments are up by whopping 317% in 2012 at least (50 million units shipped as a minimum vs. 12 million units in 2011) according to sources given below: 

                                                                                                                          Digitimes Research: White-box tablet shipments to surpass 50 million units in 2012 [DIGITIMES Research, Nov 8, 2012]

                                                                                                                          White-box tablets are expected to see a surge in shipment growth in 2012 with volumes surpassing 50 million units, according to Digitimes Research senior analyst James Wang.

                                                                                                                          There are three major drivers that will help white-box tablets achieve strong growth in the year: a large number of potential consumers brought in by Android handsets, mature development of China-based processors, and decreasing costs o white-box tablets. With the addition of white-box tablet shipments, Android is expected to surpass iOS and become the largest mobile operating system in 2012, while 7-inch displays will also become the mainstream specification for tablets.

                                                                                                                          As the branded tablet PC market is seeing fierce competition in terms of technology, capacity, yield rates, patents and prices, the rise of white-box tablets has already made these players a new force in the tablet market, with some white-box players even seeing higher shipment volumes than first-tier vendors.

                                                                                                                          Digitimes Research believes that brand vendors should be aware of white-box tablet players’ developments in the future, since even platform designers such as Google and Microsoft have used their resources to increase price competition in the tablet market, and the situation may gradually turn to favor China-based players with expertise in lowering costs.


                                                                                                                          Source: Digitimes Research, November 2012
                                                                                                                          or from the Chinese version of the same [Nov 9, 2012]:

                                                                                                                          China Fabless: Rockchip rattled by Android tablet wars [by Junko Yoshida on EE Times, Sept 25, 2012]

                                                                                                                          How many tablets does China make, how big is the Chinese market?
                                                                                                                          80 percent of media tablets made in China are exported


                                                                                                                          Unit: Million of units
                                                                                                                          Source: Chinese industry estimates

                                                                                                                          For more information see also: Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]

                                                                                                                          In retrospect: just 4 months ago the forecast was increased from 30 million to 40 million
                                                                                                                          Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]

                                                                                                                          Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.

                                                                                                                          An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.

                                                                                                                          Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.

                                                                                                                          White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.

                                                                                                                          China market: Domestic chipset vendors ramping up shipments to white-box tablet PC makers [DIGITIMES, July 20, 2012]

                                                                                                                          China-based chipset solution vendors including Rockchip Electronics and Allwinner Technology have been ramping up their shipments to white-box tablet PC vendors in China, cutting out market share from Taiwan-based VIA Technologies, according to industry sources.

                                                                                                                          Shipments of white-box tablet PCs in China totaled eight million units in the first half of 2012 and are expected to reach 16-17 million units for the year, compared to 20 million projected previously, the sources indicated.

                                                                                                                          Rockchip shipped at least 1.6 million tablet chipset solutions in the first half, accounting for 20% of the white-box tablet PC segment. Rockchip’s latest ARM-based dual-core solution, the SoC RK3066, is being built using a 40nm process at Taiwan Semiconductor Manufacturing Company (TSMC), said the sources.

                                                                                                                          Allwinner has been delivering more of its A10 solutions, which are also manufactured by TSMC utilizing a 55nm process, added the sources.

                                                                                                                          then came the news that: Demand for white-box tablets keeps growing despite keen competition [DIGITIMES, Oct 15, 2012]

                                                                                                                          Demand for white-box tablets rolled out by China-based makers remains strong currently despite the launch of US$199 models by Amazon, Barnes & Noble and Google, and the dominance of Apple’s iPads, according to industry sources.

                                                                                                                          Some white-box makers in Shenzhen are shipping 200,000-300,000 tablets a month, and a number of large-scale operators are even shipping one million units a month, buoyed by their tactics of optimizing hardware specifications, while keeping device prices low, noted the sources.

                                                                                                                          Most 9.7- or 10.1-inch white-box tablets powered by a dual-core CPU are currently quoted below US$200, while those comparable models with a single-core processor are priced at US$70-120, revealed the sources.

                                                                                                                          Some 7-inch models built with China-based Allwinner’s A10 solutions can be available for US$50, the sources added.

                                                                                                                          Additionally, the FOB prices of US$150-250 for 9.7-inch white-box tablets with dual-core CPUs, high resolution displays and 3G modules are also competitive in emerging markets, the sources commented.

                                                                                                                          Some tablet exhibitors at the ongoing HKEF 2012 (Hong Kong Electronics Fair, Autumn Edition) estimate that China-based white-box makers as a whole are shipping four million tablets a month currently.

                                                                                                                          Allen Wu, president, ARM China, predicts that shipments of Android-based tablets by China makers are likely to reach 50 million units in 2012 and increase to 100 million units in 2013.

                                                                                                                          Over 5.0 million Nexus 7s to be shipped in 2012, say Taiwan makers [DIGITIMES Research, Nov 19, 2012]

                                                                                                                          At the end of the second quarter, Google expected shipments of 2.5 million Nexus 7s in 2012 but since then it has continually placed additional orders in view of booming sales, with the cumulative shipment volume in 2012 will reach 5.0 million units based on orders released, according to Taiwan-based players in the supply chain.

                                                                                                                          While international vendors usually place orders for shipments to peak in October and November to meet year-end peak demand beginning in late November, Nexus 7 shipments are expected to remain at a high level of 700,000-1,000,000 units in both November and December, the sources pointed out.

                                                                                                                          After the launch of the 16Gb Nexus 7 for sale at US$199 and a 32GB version at US$249, Google on November 13 launched a 32GB 3G-enabled Nexus 7 for sale at US$299 and Google Play and Google’s partner AT&T have sold out available stock, the sources indicated.

                                                                                                                          While the iPad mini is thought of as a major competitor for the Nexus 7, Taiwan-based iPad mini supply chain makers indicated that Apply has not adjusted order volumes since the tablet was launched and monthly shipments remain at nearly 4.0 million units currently.

                                                                                                                          Digitimes Research: Google will become more influential in tablet market [DIGITIMES Research, Nov 2, 2012]

                                                                                                                          Senior analyst James Wang of Digitimes Research believes that Google’s recently announced Nexus 10, developed in cooperation from Samsung Electronics, and upgraded storage for the Nexus 7, are aimed at starting competition with players such as Apple, Amazon, Barnes & Noble and China-based white-box tablet vendors.

                                                                                                                          Since Google has prepared a full-range of tablet products, Wang believes the company’s entry-level Nexus tablet, that has not yet been announced, will have the strongest influence on its competitors.

                                                                                                                          Google’s Nexus 7 shipments performed better than expected, and are forecast to reach 4.3 million units in 2012, accounting for about 20% of non-Apple tablet shipments (excluding white-box models), while the volume in the fourth quarter is also expected to enjoy sequential growth despite the weak global economy, Wang pointed out.

                                                                                                                          Digitimes Research estimates that Google’s Nexus series tablets will see total shipments of 19 million units in 2013 accounting for 50% of non-Apple tablet shipments. [In a later estimate Wang raised the shiments of other branded Android tablets to 32 millions, see also here in the beginning, so Google’s Nexus marketshare now is only 37% in its own category.]

                                                                                                                          But note: Nexus 7 not yet allowed to enter China market [DIGITIMES Research, Sept 11, 2012]

                                                                                                                          While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.

                                                                                                                          The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.

                                                                                                                          Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.

                                                                                                                          Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.

                                                                                                                          Google attitude against modified Android may lead to split in Android, say Taiwan handset makers [DIGITIMES Research, Sept 18, 2012]

                                                                                                                          Google’s opposition to Taiwan-based vendor Acer’s launch of the A800, a smartphone based on the Alibaba-developed operating system Aliyun, reflects Google’s attempt to check development of modified Android platforms, but if Google cracks down on this, developers of modified Android platforms may be forced to offer own-brand smartphones or tablets and give up on Android, resulting in an increased split in the adoption of Android, according to Taiwan-based handset supply chain makers.

                                                                                                                          Google explained that Aliyun is incompatible with the Google ecosystem and therefore unable to ensure a consistent user experience among developers, makers and consumers, the sources noted. In response, Alibaba emphasized that Aliyun, while based on open-source Linux as Google is, is not part of the Google ecosystem and therefore is not necessarily compatible with the ecosystem, the sources indicated.

                                                                                                                          Developers of modified Android platforms such as Amazon and Alibaba are not members of the Open Handset Alliance and are Google’s competitors, they need not care about Google’s attitude, the sources pointed out. However, smartphone vendors need to cooperate with Google to offer Android models and therefore have to be concerned about Google’s attitude against modified Android platforms, the sources indicated.

                                                                                                                          If Google cracks down by prohibiting smartphone vendors from adopting modified Android platforms, developers of modified Android platforms, such as Amazon, may skip vendors to directly partner with ODMs to offer their own-brand devices, with such platforms to set up their own ecosystems and thereby become more competitive with Android, the sources pointed out. For some China-based smartphone vendors which have adopted many locally developed applications, because losses arising from forgoing Android may be small, they may shift to a modified Android platforms.

                                                                                                                          Among China-based smartphone vendors, only Huawei Technologies, ZTE, Lenovo, Haier, Oppo and a few others joined the Open Handset Alliance, the sources noted. As China is the largest smartphone market around the world, Google had better pay attention to response from web service operators, smartphone vendors and consumers, the sources pointed out.

                                                                                                                          Commentary: Is it a blessing for Asustek to have Google backing? [DIGITIMES, Nov 7, 2012]

                                                                                                                          Asustek Computer has seen its brand image improve in the US and Japan recently thanks to the launch of dual-branded Nexus 7 in cooperation with Google. Asustek is proud of its product design with regard to the Nexus 7, and also aims to capture the top-vendor ranking in the Android tablet segment. But it remains to be seen whether Asustek will be able to continue to expand its brand image based on the charm of the Nexus 7, since Google has announced its Nexus 10 in conjunction with Samsung Electronics.

                                                                                                                          Google has been backing Asustek in the development of the Nexus 7, offering the Taiwan-based hardware vendor the priority to design-in its latest Android OS and to penetrate into the US tablet market jointly.

                                                                                                                          Due to aggressive pricing set for the Nexus 7, industry watchers have wondered whether the Google-Asustek cooperation would generate profits for Asustek before the production of the 7-inch tablet reaches economies of scale. But for Asustek, the dual-brand marketing was not aiming at generating profits initially but rather improving its brand image, particularly in North America.

                                                                                                                          Optimizing Asustek’s design capability and Quanta Computer’s manufacturing muscle, the Google-Asustek team is able to set the price of the Nexus 7 lower. The low-priced tactics is working as sales of the Nexus 7 have been better than expected, while Asustek’s notebook sales in the US are also improving.

                                                                                                                          Some industry watchers now estimate that total shipments of the Nexus 7 are likely to reach 4-4.2 million units by year-end 2012, while Asustek will also be able to sell more of its own brand notebooks in the US.

                                                                                                                          But the skepticism about the merits of the Google-Asustek tie-up still remains, since Google has showed its intention to control the development of the Android market, optimizing the production of the 7-inch Nexus 7 at Asustek and the 10-inch model at Samsung. Furthermore, the latest market rumors also indicate that Google may also team up with Lenovo for penetrating into the China market.

                                                                                                                          Does Google treat Asustek as a brand partner or an OEM supplier? John Lagerling, director of business development for Android, seems to have an answer to the question.

                                                                                                                          When approached by the New York Times during a recent interview seeking a confirmation of Asustek’s remarks that current shipments of the Nexus 7 have reached as many as one million units a month, Lagerling replied, “We haven’t announced numbers. We typically don’t allow our partners to announce numbers.”

                                                                                                                          The message clearly indicates that Google treats Asustek as an OEM partner, but not a dual-brand partner.

                                                                                                                          In the worst-case scenario, Google may tie up with other vendors such as HTC and Lenovo to develop its next-generation Nexus tablets, which will place Asustek under fire from rivals vying for the Android tablet market.

                                                                                                                          Asustek has estimated its tablet shipments to reach 6.3 million units in 2012, of which the Nexus 7 will account for over four million. In other words, shipments of Asustek’s own brand Transformer and Padfone tablets are limited.

                                                                                                                          Asustek’s competitive advantage will wane further if it fails to win the design-in priority for the next-generation Nexus tablets.


                                                                                                                          The emerging new trends
                                                                                                                          in the premium ecosystem of the Windows devices

                                                                                                                          [Windows] Notebooks

                                                                                                                          Third-generation ultrabooks may be able to achieve 40% of notebook shipments, say players [DIGITIMES, Dec 11, 2012]

                                                                                                                          As Intel failed to achieve its goal of having ultrabooks account for 40% of total notebook shipments with its Ivy Bridge platform, and the proportion only reached about 10%, sources from notebook players believe the goal may be achievable with the upcoming Haswell platform, which is set to launch at the end of second-quarter, 2013.

                                                                                                                          The sources pointed out that compared to Ivy Bridge, Haswell’s stronger performance and cheaper price, plus the expectation that Windows 8 should become more standardized by then, should mean ultrabooks have a chance to account for 40% of total notebook shipments by the end of 2013.

                                                                                                                          Although vendors have released ultra-like notebooks with prices around US$699-899 as alternatives, since these devices lack attractiveness in terms of design and weight, while ultrabook models with specifications similar to the MacBook Air have prices a lot higher than the MacBook Air, most consumers have turned to purchase Apple’s product instead, the sources noted.

                                                                                                                          Digitimes Research: Surface tablet to mainly devour notebook demand in the short term [DIGITIMES Research, Oct 30, 2012]

                                                                                                                          Microsoft’s recently launched own-brand Surface tablets have raised the question of whether Surface will devour consumer demand for tablets or notebooks, or maybe even both. In terms of hardware, Surface is capable of satisfying consumer demand for notebooks, but to replace other tablets, it still requires a more complete app software ecosystem, according to Digitimes Research senior analyst James Wang.

                                                                                                                          Currently, the major difficulty Surface faces in gaining a competitive edge in the tablet market is the lack of a complete app software ecosystem, which means that if Surface can achieve growth in the short term, it will mainly be at the expense of demand for notebook products.

                                                                                                                          To let Surface to become a tablet killer instead of a notebook killer, Microsoft must expand shipments of Windows RT devices to attract application designers to join and establish an ecosystem. However, due to Android’s existence in the market, most notebook vendors are hesitant about joining the Windows RT market.

                                                                                                                          Although IBM, Microsoft and Intel were able to defeat Apple previously with an open platform strategy, due to Android’s existence, Microsoft will be unable to compete against Google in terms of business model and will be forced to head to the same business direction as Apple of having a closed platform with integrated software and hardware, making it even more difficult for Microsoft to build a complimentary ecosystem built on the Windows RT platform.

                                                                                                                          The most popular strategy for platform competition is to offer a free or low-price product or service to attract users and establish an ecosystem to strengthen consumer loyalty, and then seek methods to gain profit. Apple, Google and Amazon’s strategies are all similar – by abandoning profit from some segments including hardware, operating system, software, digital content or advertising, they are able to increase their profits from the remaining segments; however, for Microsoft, since all the above segments belong to different business units, internal struggles and external industry fluctuations will all affect Microsoft’s performance in the future.

                                                                                                                          Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013 [DIGITIMES Research, Nov 13, 2012]

                                                                                                                          Shipment growth for touch screens used in notebooks throughout the fourth quarter of 2012 and most of 2013 will at large not be affected by the release of Windows 8, according to Digitimes Research.

                                                                                                                          Research indicates that consumers are more likely to purchase tablets throughout the time period because of the wide variety of tablet products available, and because of the difference in pricing between tablets and notebooks.

                                                                                                                          The notebook shipment forecast is expected to drop by 192 million units in 2012 to 189 million units in 2013 as a result, as well as due to a lack of recovery in the global economy.

                                                                                                                          However, Digitimes Research pointed out that the expected drop in notebook shipments will also be due to notebook makers increasing the mainstream sizes of their products to 14- and 15-inch, which will thus decrease the amount of panels available for producing notebook products.

                                                                                                                          Despite the shipment drop, the usage rate for touch panels used in notebooks is expected to increase to 10% in 2013, added Digitimes Research.

                                                                                                                          Digitimes Research: Asustek to compete with Acer for top-3 worldwide notebook vendor spot in 2013 [DIGITIMES Research, Nov 15, 2012]

                                                                                                                          Weak Global notebook demand is expected to reshuffle the top-10 notebook brand rankings in 2013, with Lenovo expected to successfully take over Hewlett-Packard’s (HP) leading position. Meanwhile, Asustek Computer, which will rank as the fourth-largest brand vendor worldwide in 2012, will compete against Acer to become the third-largest vendor in 2013.

                                                                                                                          Toshiba, the sixth-largest notebook brand worldwide in 2012 is expected to be surpassed by Apple in 2013.

                                                                                                                          With top brand vendors starting to lose their edge, the four new stars in the notebook brand market – Lenovo, Asustek, Apple and Samsung – are expected to see their combined market share rise from 40.9% in 2012, to 43.2% in 2013.

                                                                                                                          As for upstream ODMs, their contributions to global notebook shipments is expected to grow from around 70% in 2011 to 75% in 2013, while electronic manufacturing service (EMS) providers will step out of the design business and turn to focus mainly on manufacturing.

                                                                                                                          In 2013, Pegatron Technology and Wistron are expected to have the best performance among the top-five makers as the former will benefit from increased orders from Lenovo and Fujitsu, while the later will benefit from its enlarged cooperation with Asustek.


                                                                                                                          Source: Digitimes Research, November 2012

                                                                                                                          HP, Lenovo aim to ship 40 million notebooks each in 2013, say Taiwan makers [DIGITIMES, Nov 19, 2012]

                                                                                                                          Despite a stagnant global notebook market in 2012, Hewlett-Packard (HP) and Lenovo aim to ship 40 million notebooks each in 2013, respectively increasing by 25% and 33.3-37.9% from 2012, according to Taiwan-based supply chain makers.

                                                                                                                          As there have been no signals to indicate an economic rebound in the US and Europe, and demand for Windows 8 notebooks will not take off in the near future because consumers will take time to get accustomed to the new operating system, HP and Lenovo may be too optimistic about their notebooks sales in 2013, the sources analyzed.

                                                                                                                          Among other vendors, Samsung Electronics aims to ship 17 million notebooks and 40 million tablets in 2013, hiking from 2012 by 21.4% and 300% respectively, while Toshiba and Acer have set respective goals of shipping 20 million units, growing from 2012 by 25%, and 28 million units which will rise by 7.7%, the sources noted.

                                                                                                                          Lenovo 3Q12 global PC market share rises to 15.6% [DIGITIMES, Nov 9, 2012]

                                                                                                                          Lenovo saw its total global sales volume of notebooks, desktops and tablets during the third quarter of 2012 increase by 10.3% on year, with corresponding global market share rising to 15.6%, according to the company’s fiscal second-quarter 2012 (July-September) report released on November 8.

                                                                                                                          Lenovo posted sales revenues of US$8.7 billion, gross margin of 12.1%, net operating profit of US$206 million, pre-tax profit of US$204 million, and net profit of US$162 million for the third quarter of 2012.

                                                                                                                          Lenovo reached the largest PC market shares in China, Japan, India, Russia and Germany in the third quarter, and is likely to do so soon in Brazil, the company pointed out.

                                                                                                                          Lenovo shipped 8.5 million handsets in the third quarter, of which seven million were smartphones, the company indicated.

                                                                                                                          Notebook vendors headhunt R&D talent from ODM partners [DIGITIMES, Nov 19, 2012]

                                                                                                                          As notebook brand vendors grow more interested in-house R&D and manufacturing to promote their brand image, sources from the upstream supply chain have seen some notebook vendors starting to headhunt talent from their ODM partners.

                                                                                                                          Sources from notebook ODMs also pointed out that vendors have changed their outsourcing strategies and will check with their chassis and hinge suppliers for component materials and prices, and have their in-house R&D teams complete industrial design before handing the work to ODMs.

                                                                                                                          The sources pointed out that the new strategy is expected to expand in the notebook industry in 2013 and should benefit notebook brand vendors in terms of gaining more control over component costs as well as keeping their product designs confidential.

                                                                                                                          Acer and Hewlett-Packard (HP) have already started adopting the strategy.

                                                                                                                          Acer recently pointed out that the company will increase its R&D investment by 20% each year for the next three years. The company currently has about 1,000 R&D engineers. Lenovo will also continue strengthening its R&D and manufacturing abilities and is set to achieve an in-house production rate of 20% in 2013. Samsung’s in-house production rate is expected to maintain at 85-90% in 2013.

                                                                                                                          Notebook ODMs offer extra services to attract tablet orders [DIGITIMES, Nov 19, 2012]

                                                                                                                          With notebook shipments estimated to only have a single-digit percentage growth on year in 2013, notebook ODMs including Quanta Computer, Compal Electronics and Wistron, are aggressively trying to land tablet orders by offering extra services, according to sources in the upstream supply chain.

                                                                                                                          In addition to offering preferences over price, product specifications and shipment conditions, Compal and Wistron also offer their exclusive touchscreen solutions from related subsidiaries to attract downstream brand vendors to place orders.

                                                                                                                          Meanwhile, Quanta is offering services through its cloud computing expertise and the company reportedly has assisted brand vendors such as Amazon, to build data centers and successfully acquired their tablet orders.

                                                                                                                          In 2013, Compal estimates it will ship 6-8 million tablets, up from two million units in 2012, while Wistron expects its tablet shipments to reach six million units, up from 2.5 million units in 2012, and Quanta with shipments of 14-15 million units, up from 10 million units in 2012.

                                                                                                                          11.6-inch becomes niche-market size for notebooks, say Taiwan makers [DIGITIMES, Nov 15, 2012]

                                                                                                                          As global sales of netbooks have been decreasing due to competition from tablets, 11.6-inch has become niche-market size, according to Taiwan-based notebook supply chain makers.

                                                                                                                          Among notebook screen sizes, 11.6- and 13.3-inch have accounted for a relatively small proportion of total shipments, the sources indicated. However, as Samsung Electronics and Acer have launched inexpensive 11.6-inch Chromebooks and Asustek Computer has launched a 11.6-inch VivoBook touch-control notebook, an increasing number of 11.6-inch notebooks are available for sale, the sources commented.

                                                                                                                          Despite shrinking sales, demand for netbooks still exists, especially in emerging markets, the sources indicated. As most netbooks are have screen sizes of 10-inch, and 10.1-inch is so far the upper limit for typical tablet screen sizes, 11.6-inch notebooks are likely to see considerable demand in the global market, the sources pointed out.

                                                                                                                          Windows 8 may not start a PC replacement trend for enterprises until after 2014 [DIGITIMES, Nov 19, 2012]

                                                                                                                          Demand for Microsoft’s Windows 8 is unlikely to start emerging until 2013 for the consumer market, while for the enterprise market, demand is expected to come at an even later time and may not appear until 2014, according to sources from the PC industry.

                                                                                                                          Although Microsoft is trying to present its latest innovations in Windows 8 to response to consumers’ fluctuating demand, it turns out that consumers need more time to understand the new advantages that the product provides and relatively delay acceptance for the new operating system.

                                                                                                                          Although notebook brand vendors have a high expectation for the year-end holidays this year, their order placement to the upstream supply chain still shows they are cautious about the shipment performance during the traditional peak season.

                                                                                                                          To prompt enterprises to adopt Windows 8, Microsoft has recently noted that the company will stop providing support to Windows XP in April, 2014 with most of the enterprises expected to turn to Windows 7 and some to Windows 8 as stability and necessity are the major considerations for enterprises to make a purchase.

                                                                                                                          Component makers concerned Windows 8 demand may not emerge until 1Q13 [DIGITIMES, Nov 19, 2012]

                                                                                                                          Some upstream component makers have recently started to be concerned that the PC replacement trend expected to be brought on by Windows 8 may not occur in the fourth quarter of 2012 as originally estimated, but will take off in the first quarter of 2013, according to sources from upstream supply chain.

                                                                                                                          Since an operating system usually needs to have serious debugging after launch, the sources believe consumers may hold back their new PC purchases until some time later and their actions would impact demand for Windows 8-based systems in the fourth quarter.

                                                                                                                          However, the component makers are still placing high hopes on the new operating system to bring growth.

                                                                                                                          Notebook ODMs facing uncertainty as brand vendors take over R&D [DIGITIMES, Nov 7, 2012]

                                                                                                                          Acer plans to release a new notebook that is designed and developed in-house, creating an alert among notebook ODMs that brand vendors are trying to become more involved in R&D and the component purchasing of their notebook products which could impact ODMs’ profitability, according to sources from the upstream supply chain.

                                                                                                                          The sources pointed out that Acer’s in-house developed notebook features Windows 8 and a touchscreen display and will be showcased at Consumer Electronics Show (CES) in 2013, at the earliest. Related R&D has already been completed and Acer is currently seeking a partner to conduct assembly.

                                                                                                                          So far, the device is the only in-house developed project that Acer plans to release in the short term and shipments will be limited, indicating that the project is a test for Acer to try out its R&D capabilities, the sources noted.

                                                                                                                          With Lenovo also planning to expand its in-house production by establishing its own plants, if Acer also decides to conduct R&D in house, it could seriously impact the values of ODMs for their clients.

                                                                                                                          However, some ODMs pointed out that they are not concerned about the moves and believe the possibility of the new business model emerging is low since the brand vendors have already outsourced their R&D to ODMs for a long time, and rebooting their R&D capabilities will require a long period of learning.

                                                                                                                          Since Wintel is no longer dominating the PC market, brand vendors will also need to spend R&D resources on ARM and Android, which would seriously increase their burden.

                                                                                                                          At its Windows 8 product launch conference, Acer also revealed that the company will focus more on product R&D and will increase its R&D resources by at least 20% every year.

                                                                                                                          Commentary: Notebook ODMs face uncertainties in tablet market [DIGITIMES, Nov 7, 2012]

                                                                                                                          The rise of tablets and smartphones, plus the economic downturn in the US and Europe, have been causing PC brands such as HP, Dell and Acer to report unsatisfactory sales results. This has been affecting the performance of notebook ODM firms such as Quanta Computer, Compal Electronics and Wistron.
                                                                                                                          ODM firms have been hoping that Windows 8 can stimulate a new wave of demand as consumers switch to new PC models with the Microsoft operating system in 2013. Also, ODM firms have been aggressively fighting over tablet orders as demand in 2013 is likely to reach 200 million units.
                                                                                                                          Quanta Computers targets revenues from non-notebook business to increase to 30% of total revenues in 2012. Compal is looking to ship 6-8 million tablets in 2013, while Wistron aims to achieve its tablet shipment target of 6 million units in 2013.
                                                                                                                          Compal’s and Wistron’s targets of shipping 6-8 million tablets to a market whose total shipments are expected to reach 200 million in 2013 show how difficult it has been for notebook ODMs to obtain tablet orders.
                                                                                                                          One of the reasons is that most of the market has been dominated by Apple while other tablet vendors such as Amazon and Google have yet to see strong sales. Manufacturing orders have been over-concentrated, causing tough competition among firms. As a result, both Quanta and Compal have trimmed their tablet divisions.
                                                                                                                          The ODM firms have been facing uncertainties regarding tablet orders, such as multiple platforms, unstable orders, and different device sizes.
                                                                                                                          Apple’s iOS and Google’s Android platforms continue to dominate the market while Microsoft’s Windows comes in third. Samsung is planning to develop its own platform and HP’s webOS may also become one of the major players. The multiple platforms mean firms need to bet on the right one to maintain orders.
                                                                                                                          As for orders, clients may place large volumes expecting strong sales in the end market. But when sales turn out worse than expected, inventory will build up and orders will be cut. That is the case with Amazon’s Kindle Fire earlier this year. For the tablet segment, manufacturing partners are under much higher pressure from inventory management.
                                                                                                                          Another uncertainty comes from the size of the devices. There are currently products that are 7-, 8.9-, 9.7-, 10.1-, and 11.6-inch. A small difference in size can mean significant differences in revenues.
                                                                                                                          In addition, profits have been unstable. Some tablet brands want to increase market share by resorting to low price and sacrificing their gross margin. This directly affects the profit margin of ODM firms.

                                                                                                                          Taiwan component makers worried about Lenovo plans to hike in-house notebook production [DIGITIMES, Oct 8, 2012]

                                                                                                                          As China-based vendor Lenovo plans to increase in-house production of own-brand notebooks and will therefore procure components instead of letting ODMs release orders, as a result Taiwan-based component makers have felt pressure of losing orders, according to Taiwan-based notebook supply chain makers.

                                                                                                                          In-house production currently accounts for 20-30% of Lenovo’s shipments of notebooks, desktops and other types of PCs, the sources indicated.

                                                                                                                          Lenovo will have LCFC (Hofei) Electronics Technology, its joint venture with Taiwan-based ODM Compal Electronics in Hofei, northern China, start volume production at the end of 2012 or the beginning of 2013, to increase in-house production of notebooks, the sources pointed out. In addition, Lenovo is setting up PC production lines in the US and will do so in Brazil in 2013, with volume production to begin in 2013, the sources noted.

                                                                                                                          In addition to increasing in-house production, Lenovo may set up a supply chain consisting of China-based component makers, the sources pointed out.

                                                                                                                          Compal/Lenovo joint venture expected to output 3-5 million notebooks in 2013 [DIGITIMES, Sept 4, 2012]

                                                                                                                          The notebook manufacturing joint venture of Compal Electronics and Lenovo in Hefei, China was reported by local media to enjoy more than 10 million units of notebook production volume in 2013, but sources from notebook players estimate that the plants may only be able to output around 3-5 million units next year as their yield rates still need improvement, while the related process of shifting orders from other ODMs to the joint venture may also affect the total output volume from the joint venture.

                                                                                                                          The sources pointed out that Compal and Lenovo’s cooperation will create benefits for both firms as Lenovo will be able to directly control the quality of its products, understand the ODM manufacturing process and reduce its cost, while Compal will be able to tighten its relationship with Lenovo and benefit from Lenovo’s orders.

                                                                                                                          The joint venture will start pilot production in October and start mass production in the fourth quarter of 2012 with monthly capacity at around 300,000 units. Initially, the plants will focus on notebook production, but will later add production for all-in-one PC. The local media has reported that the plants will manufacture about one million notebooks in 2012, 13 million units in 2013 and 20 million units in 2014.

                                                                                                                          Currently, Lenovo has 51% stakes in the joint venture with Compal holding the remaining 49% and some market watchers are concerned that Lenovo may shift all its Compal orders to the joint venture, affecting Compal’s own orders and profitability since Compal will need to share its profit with Lenovo for any order received by the joint venture.

                                                                                                                          Commenting on the concerns, Compal president Ray Chen has noted that the two firms have already signed a contract to avoid from this type of situation, but he refused to reveal further details of the contract.

                                                                                                                          In 2013, sources from the supply chain pointed out that Lenovo will still maintain about 30% of notebook shipments being in-house manufactured and will outsource the remaining 70% with the orders to the joint venture considered as outsourcing.

                                                                                                                          Compal Electronics lays off tablet R&D, testing personnel [DIGITIMES, Oct 23, 2012]

                                                                                                                          Taiwan-based notebook and tablet ODM Compal Electronics has laid off more than 100 employees responsible for tablet R&D and testing.

                                                                                                                          Compal confirmed the layoffs, explaining that the company recruited staff members to meet growing orders for tablets in 2011 but orders received have been far short of expectations and therefore it is necessary to adjust manpower. Although Compal stressed that only one wave of layoffs is planned, internal sources indicated that there may be more.

                                                                                                                          Compal’s staff cuts signal that tablet vendors have encountered difficulties and notebook supply chains are under pressure, industry sources pointed out. For tablet vendors, the iPad has dominated the high-end segment while competition in among entry-level models, which includes the Amazon Kindle Fire series and Google Nexus 7, is already intensive, the sources analyzed. In addition, tablet vendors originally rested their hopes on Windows 8 models, but Microsoft’s launch of the Windows RT Surface at US$499, and Apple’s planned launch of the iPad mini will cut into their competitive advantages, the sources said.

                                                                                                                          Compal’s tablet clients are mainly Acer and Lenovo, the sources indicated.

                                                                                                                          In September 2011, Quanta Computer laid off over 1,000 production line workers due to a large decrease in orders for tablets from RIM, and in October 2011 Inventec laid off 432 employees because Hewlett-Packard reduced its tablet orders.

                                                                                                                          Lenovo to launch a table-shaped all-in-one PC [DIGITIMES, Nov 5, 2012]

                                                                                                                          Lenovo plans to launch a Windows 8-based all-in-one PC that features a similar industrial design as Microsoft’s Surface [on June 18, 2012, a Microsoft tablet of the same name was unveiled, the original Microsoft Surface was rebranded as Microsoft PixelSense, see the About Microsoft PixelSense [Microsoft PixelSense press page, June 18, 2012]], a table-shaped PC. The machine features four legs and when the display is laid flat, it becomes like a table and can be used by multiple users simultaneously, according to sources from the upstream supply chain.

                                                                                                                          The all-in-one PC features a 27-inch display with initial shipments of 20,000 units.

                                                                                                                          In addition to Lenovo, Acer, Asustek Computer and Hewlett-Packard (HP) all plan to launch new all-in-one PCs with some models will appear as soon as the end of 2012.

                                                                                                                          At Computex 2012, Asustek chairman Jonney Shih demonstrated an all-in-one PC product under its Transformer series and the all-in-one PC can be detached and become an 18.4-inch tablet, supporting both Windows 8 and Android; however, the product, so far, still has not yet been mass produced.

                                                                                                                          Meanwhile, Acer has also launched two Windows 8-based all-in-one PCs with special designed hinge and Lenovo also displayed its IdeaCentre A720 with a function to lay out flat.

                                                                                                                          In 2012, all-in-one PC shipments are expected to reach 16.4 million units, up 20% from 13.7 million units in 2011, according to figures from IHS iSuppli, while IDC also forecast that the all-in-one PC shipments will reach 17 million units in 2013.


                                                                                                                          [Windows] Smartphones

                                                                                                                          FIH reportedly lands handset orders from Microsoft and Amazon [DIGITIMES, Nov 26, 2012]

                                                                                                                          Foxconn International Holding (FIH) has reportedly landed handset orders from Microsoft and Amazon and is set to launch the devices in mid-2013, according to sources from the upstream supply chain. However, both the parent company Foxconn Electronics (Hon Hai Precision Industry) and FIH declined to comment about clients or orders.

                                                                                                                          Foxconn is the major manufacturer of Apple’s iPhone products, while its subsidiary FIH has clients including Nokia, Sony, Lenovo, Huawei and ZTE.

                                                                                                                          Microsoft’s own-brand handset will adopt its Windows Phone 8 operating system, the sources noted.

                                                                                                                          The sources pointed out that Microsoft and Amazon’s own-brand handsets will only have a limited shipment volume initially and may become a new business model for the manufacturers in the future.

                                                                                                                          In addition to provide manufacturing services to first-tier brand vendors, FIH also supplies white-box handsets to regional vendors in China, Europe and the US.

                                                                                                                          Taiwan IC design houses to benefit from Samsung aggressive product roadmaps in 2013 [DIGITIMES, Dec 7, 2012]

                                                                                                                          … the Korea-based vendor is reportedly set to adopt a more aggressive ‘shotgun’ strategy wherein many models will be created in the smartphone, tablet, notebook, LCD TV and DSC sectors that cover a wide range of market segments in 2013, according to industry sources.

                                                                                                                          In the smartphone sector, Samsung will move into the Windows Phone platform and roll out models targeting the entry-level, mid-range and high-end segments simultaneously, in an attempt to duplicate its success in the Android space, the sources revealed.

                                                                                                                          Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]

                                                                                                                          Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share

                                                                                                                          Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]

                                                                                                                          For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units.

                                                                                                                          Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.

                                                                                                                          Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016

                                                                                                                          Smartphone OS

                                                                                                                          2012 Market Share

                                                                                                                          2016 Market Share

                                                                                                                          CAGR 2012 – 2016 (%)

                                                                                                                          Windows Phone

                                                                                                                          2.6%

                                                                                                                          11.4%

                                                                                                                          71.3%

                                                                                                                          Total

                                                                                                                          100.0%

                                                                                                                          100.0%

                                                                                                                          18.3%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012

                                                                                                                          The previous forecasts taken together mean:
                                                                                                                          – IDC: 18.7 million Window Phones in 2012 (calculated as 2.6% of 717.5 million units)
                                                                                                                          – IDC: 161 million Window Phones in 2016 (with 71.3% CAGR of that 18.7 million)
                                                                                                                          – DIGITIMES Research + IDC: 46.6 million Window Phones in 2013 (150% growth predidicted for WP in 2013 by DIGITIMES Research over 18.7 million given by IDC for 2012)
                                                                                                                          which makes DIGITIMES Research’s forecast of 52.5 million Window Phones in 2013 quite feasible for me, at least for three reasons:

                                                                                                                          1. Samsung aggressive move into the Windows Phone platform as noted above by DIGITIMES.
                                                                                                                          2. The kind of breakthrough for the WP8 Lumias, and WP8 in general, especially against iPhone 5, as described by my recent blog entries ragarding:

                                                                                                                            High-end smartphones state-of-the-art:
                                                                                                                            Lumia 920 vs. iPhone 5 (and vs. Android, Galaxy S3, HTC One X+) [Dec 7, 2012]
                                                                                                                            Windows Phone 8 vs. Android 4.1 and 4.2 [Dec 6, 2012]

                                                                                                                          3. The additional, not yet recognized end-user and business partner advantages as described in all detail in my:
                                                                                                                            – Lead post: Marko Ahtisaari from Nokia and Steven Guggenheimer from Microsoft on the Internet of Things day of LeWeb Paris’12 [Nov 6, 2012]

                                                                                                                          Uncertain Windows 8 future may relatively affect Windows Phone 8 [DIGITIMES, Nov 5, 2012]

                                                                                                                          Although Microsoft has been aggressive promoting its new Windows 8 operating system (OS), a weak global economy has the notebook supply chain remaining conservative about the OS’ contribution to their performance in the fourth quarter and the OS’ uncertain future may relatively affect the software giant’s plan for its Windows Phone 8 platform, according to sources from the upstream supply chain.

                                                                                                                          Microsoft’s aggressive promotion of Windows 8 touchscreen functions is meant to blur the boundaries between smartphone, tablet, notebook and desktop through a similar usage experience, while expanding its advantages in the IT industry through a unified OS platform structure and gain some benefits from the smartphone market, where the company is currently still behind.

                                                                                                                          Microsoft originally hoped to strengthen its Windows Phone 8 penetration through a PC replacement trend brought by Windows 8, but since the OS may not trigger a replacement trend as expected, while Microsoft’s smartphone partners such as High Tech Computer (HTC) and Nokia are also conservative about their Windows Phone 8-based product shipments, the sources believe Microsoft’s plans for its operating systems will be further delayed.

                                                                                                                          Microsoft’s launch of own-brand smartphones in 2013?
                                                                                                                          It is based on rumors that Microsoft Is Reportedly Testing Its Own Smartphone [TechCrunch, Nov 2, 2012]

                                                                                                                          First it built the Surface, and now Microsoft is said to be working on another new hardware product, this time a smartphone. That’s according to a new report from the Wall Street Journal, which says Microsoft is currently working with Asian component suppliers on its own handset design, though it isn’t yet clear whether or not the device will ever go into mass production.
                                                                                                                          Details about what a Microsoft smartphone would look like are scarce, but the report does say that the version being currently tested has a screen between four and five inches, which is in keeping with recent designs from Apple and Android handset OEMs. It’s also probably pretty reasonable to assume that any device Microsoft puts out now will have more in common with the flagship phones from its hardware partners for Windows Phone 8, which include Nokia and HTC, than with its previous Kin smartphones. The teen-focused Kin carried Microsoft’s branding, but was made by Sharp, and lasted only 48 days on the market.
                                                                                                                          Microsoft had made a more dedicated approach to creating its own hardware with the Surface, albeit to mixed reviews. And as the WSJ reports, it’s also been more aggressive about enforcing hardware standards with its partners in recent years, both in terms of the look and makeup of Windows-certified PCs and in minimum specs for partner mobile handsets. That Microsoft could be considering an approach like Apple’s, wherein it would sell both hardware and software and control all aspects of the ecosystem, definitely seems more plausible than it has in the past.
                                                                                                                          Also, rumors have been building that Microsoft is working on a smartphone since back in June, thanks to Nomura analyst Rick Sherlund, who said that Microsoft was already working with a “contract manufacturer” to create their own Windows Phone 8 mobile device. Then at the beginning of October, Boy Genius Report received a tip that Microsoft was indeed working on its own smartphone, that would sell alongside and compete with partner OEM devices like the HTC 8X and Nokia Lumia 920. The company has shown it’s willing to go there with the Surface, and Nokia CEO Stephen Elop even said on a conference call two weeks ago that a Microsoft-made device would be a boost to the entire Windows Phone 8 device sales ecosystem.
                                                                                                                          Even if it didn’t become a top seller in and of itself, a Microsoft-branded smartphone could offer Windows Phone what the Nexus line provides Android: a place to show off the latest and greatest software, experiment and build hype around the platform. I think the biggest risk would be in potentially alienating hardware partners, but so far the Surface doesn’t seem to have dampened the enthusiasm of Windows PC OEMs all that much, and Elop has already declared his support. If nothing else, a Microsoft-made Windows Phone 8 smartphone would be interesting, and generating interest is maybe the key ingredient to Microsoft’s future mobile success.

                                                                                                                          Why Microsoft believes latest-gen Windows Phones are ‘killer hardware’ [TechRadar, Nov 18, 2012]

                                                                                                                          INTERVIEW We talk to the head of Windows Phone: Terry Myerson

                                                                                                                          For the last year, Nokia has been the poster child for Windows Phone but recently HTC and Samsung have seemed more in favour.

                                                                                                                          Samsung announced their Windows Phone 8 handsets first and the HTC 8x was handed out to enthusiasts at the Windows Phone 8 launch.

                                                                                                                          We asked corporate vice president of the Windows Phone Division Terry Myerson to explain how Microsoft juggles partnerships with rival phone makers and how much influence manufacturers have on the design of Windows Phone.

                                                                                                                          “We work in different ways with each of them on the engineering and on the marketing,” Myerson told TechRadar.

                                                                                                                          Nokia gets priority when it comes to development because of the commitment it’s made to Windows Phone; “Nokia is exclusive to Windows Phone and we definitely, on the engineering side, prioritise platform work to support their differentiation coming through.”

                                                                                                                          Despite the restrictions it puts on handset specs, Microsoft doesn’t want to see the same handset from every phone maker. “Our goal is that Windows Phone is a platform that our partner differentiation can shine through on.

                                                                                                                          We do spend time planning with HTC and Samsung, sitting down with them and collaborating on what a product is where their differentiation elegantly coexists with Windows Phone and what we bring. There are different cultures to each of these companies and they all have their own plans for how they want to bring their technologies to market.”

                                                                                                                          “The best devices”

                                                                                                                          He’s predictably enthusiastic about the handsets that come out of the collaboration with all three partners. “I think the result is the most fantastic killer hardware we’ve ever had, not only for the windows ecosystem – I think these devices are better than any device – well, I they’re the best devices. They’re colourful, they’re beautiful, they’re thin, amazing cameras…”

                                                                                                                          Some of what you see in Windows Phone 8 handsets is Microsoft’s idea, some comes from the OEMs. “In the case of wireless charging, that was definitely Nokia’s initiative to say they wanted that; they had technologies inside their labs, they took the initiative to put forward a number of engineering designs. There were definitely platform modifications we made to support their innovation but Nokia led on that. All the credit goes to them.”

                                                                                                                          “The Wallet feature is a place where the Windows Phone team thought about how to use NFC. Roaming content though SkyDrive, encryption; these are all features coming from Microsoft. But the wide angle camera that HTC did with Skype in mind, Nokia’s wireless charging – those are innovations coming from our hardware partners.”

                                                                                                                          Although app developers get far more access to the platform in Windows Phone 8, Microsoft is still keeping some control and treading a fine line between the free for all of Android that Google is increasingly trying to rein in and the central control of the Apple ecosystem.

                                                                                                                          We like to think of it as the structured ecosystem that allows the differentiation of partners to shine though on our platform, at the same time providing consumers the confidence that we will protect their privacy, keep malware off the platform, provide a consistently familiar user experience, and providing developers confidence they can write apps once and target our platforms. So there is more structure and structure at times can feel constraining but also there are benefits to it. It’s helpful that everyone drives on the same side of the road, for example…”

                                                                                                                          Why was the SDK so hard to get?

                                                                                                                          Myerson is unapologetic about not making the Windows Phone 8 SDK widely available before the launch (when most developers didn’t have phones to work with) and concentrating instead of key developers to get big-name apps; 46 of the top-selling 50 apps from other phones will be on Windows Phone 8 (and yes, he knows who the missing four are and is working on changing their minds).

                                                                                                                          The sheer number of apps in the Store is far from the most important thing. “It’s a balance; definitely there is magic that occurs in that long tail of apps, [you get some] delightful things… but it is also true that working with these incredibly popular mobile apps is important as well.”

                                                                                                                          Windows Phone 8 is the future and it’s getting all the marketing love at the moment, but Windows Phone 7 is far from dead. Myerson assured us. “We’re going to have more to say about 7.8 in the coming weeks,” he promised.

                                                                                                                          I would expect both platforms to exist for quite some time, from a global point of view. Windows Phone 7.8 devices will span much lower price points than Windows Phone 8 devices, initially, and given the application compatibility across the platforms, it makes the ecosystem stronger to have more device and more price points. We value every 7 and 7.8 customer we have; we’ll continue to work for them as well but it is true that Windows Phone 8 is our future platform.”

                                                                                                                          Of course that only matters if Microsoft can finally start selling Windows Phone devices in significant numbers. Just as Steve Ballmer promised you wouldn’t be able to escape Windows 8 ads, Myerson promises what sounds like an advertising blitz, focussing on Windows Phone rather than on the handset makers.

                                                                                                                          This holiday it’s very important to us to get out there and tell the Windows Phone story: how we do have this amazingly unique point of view, the smartphone that can be so personal and reflect your interests and the people in your life. Telling that in the most pure sense without confusing them which brands we’re talking about is important. We need consumers to understand and love Windows Phone.”

                                                                                                                          More advertising money

                                                                                                                          Certainly Microsoft has promised to advertise Windows Phone better before, without much to show for it, and Myerson seems happy to admit it.

                                                                                                                          “We weren’t out there with same experience as Windows, even we though shared the same brand; we didn’t have all the right teamwork in place with our partners on the go to market, and we were not advertising the product. We were not out there telling the story to consumers – and that changes now. We will start telling our story. We are going to go out there and advertise the product and tell people.”

                                                                                                                          What’s different now? In a word, Windows 8 – but also more operator support. “It’s a special time. We have a great product that expresses this unique differentiated point of view, that we are the most personal smartphone, we’ve got killer hardware from partners and we have a great partnership with the mobile operators.

                                                                                                                          “The fact that they’ve ranged so many phones at such great price points is fantastic. And of course having Windows out there at the same time is exciting; making the experience familiar to users and being the best phone for Windows; if you’re a Windows user, this is the phone for you.”

                                                                                                                          ST-Ericsson: Fundamental repositioning for modem, APE and ModAps spaces

                                                                                                                          Rumour: Microsoft to expand ARM processor choices to Samsung and ST-Ericsson SOCs in next Windows update [Oct 5, 2012]

                                                                                                                          image

                                                                                                                          MSNerd, long time Microsoft leaker, has passed on a little tip about the next version of Windows on ARM.

                                                                                                                          Currently Windows on ARM runs on NVidia, Qualcomm and TI processors, which leaves OEMs like Samsung unable to use processors from their own supply chain.
                                                                                                                          According to MSNerd, in the next update to Windows Nokia and Samsung will be able to use processors from their favourite providers – in Nokia’s case ST-Ericsson’s Novathor processor, and in Samsung’s case its own Exynos processor and SOC.
                                                                                                                          Blue is said to be an interim update to Windows, much like a service pack, and may be the start of a regular, more phone-like pattern of yearly updates to Windows which add features, as we have come to expect from Windows Phone and the iOS.
                                                                                                                          So far we do not know much else about the update, but one can hope the update removes the reliance of the Modern UI on the Windows desktop for many settings.

                                                                                                                          See also:
                                                                                                                          Windows Next: Just call it ‘Blue’? [ZDNet, Aug 13, 2012]
                                                                                                                          ST-Ericsson NovaThor SoCs for future Windows Phones from Nokia [this blog, Nov 3-24, 2011]

                                                                                                                          We are talking about the following SoCs according to the latest, May 23, 2012 roadmap presentation:

                                                                                                                          image

                                                                                                                          According to the recent STMicroelectronics information included in the first section below:

                                                                                                                          1. The low-cost version of the current L8540 ModApp will be in mass production next year at the Samsung 32/28nm foundry.
                                                                                                                            My conclusion: With that ST-Ericcson could compete quite well with Qualcomm’s MSM8x30 “mid-tier market” SoCs in the Snapdragon S4 Plus tier. Depending on the production efficiency even the MSM8x27 “mass market” SoCs in the same tier may be targeted, at least later on.
                                                                                                                          2. The 28nm FD-SOI based version of the L8540 (according to a French leak given in Section II the L8580) is slated for mass production by Globalfoundries in H2 2013.
                                                                                                                            My conclusion: With that ST-Ericsson will compete quite well with what Qualcomm is going to offer later in the current MSM8x60 “premium market” space of S4 Plus.
                                                                                                                          More information on S4 Plus is in the Core post: Qualcomm decided to compete with the existing Cortex-A5/Krait-based offerings till the end of 2012 [Sept 30, 2012]

                                                                                                                          Some explanation:
                                                                                                                          The current L8540 ModApp is a dual-core 1.85GHz ARM Cortex-A9 processor, with a powerful Imagination PowerVR™ SGX544 GPU running at 500Mhz and an LTE/HSPA+/TD-HSPA modem on a single 28nm die. It started sampling in Q3 2012 and debuted on Sept 18 at the PT EXPO COMM China 2012. The low-cost version will run the dual A9-s at 1.2 GHz, while the FD-SOI based version also dual A9s at 2+ Ghz (first information was 2.3 GHz while on the PT EXPO COMM even 2.5 GHz was mentioned as possible). The PowerVR SGX544 GPU will run at a slower than 500MHz in the former and at least 600MHz in the latter case. We also know that the FD-SOI based version has taped out in September and could be available for production smartphones in smaller quantities by the end of H1 2013.

                                                                                                                          ST-Ericsson’s near term strategy is therefore to compete with the same dual-core Cortex-A9 and SGX544 based SoCs across a broad scale achieved via broad range of manufacturing technologies, and do not engage in many-core battles pursueded by the low-cost Chinese SoC vendors like MediaTek, Spreadtrum, Allwinner, Rockchip and others.

                                                                                                                          Latest competitive information regarding the low-cost Chinese vendors:
                                                                                                                          Core post: Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
                                                                                                                          Core post: Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 16, 2012]
                                                                                                                          Core post: The low priced, Android based smartphones of China will change the global market [Sept 10-26, 2012]
                                                                                                                          – Take note: MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012]

                                                                                                                          Elaboration for the current topic in details is given in the following sections:

                                                                                                                          I. Reorganization began recently at semiconductor parent STMicroelectronics

                                                                                                                          II. Summary: ST-Ericsson’s Fundamental repositioning

                                                                                                                          III. Detailed information: ST-Ericsson’s Fundamental repositioning

                                                                                                                          Warning: the last section is quite long but worth to go through


                                                                                                                          I. Reorganization began recently at semiconductor parent STMicroelectronics

                                                                                                                          STMicroelectronics Announces New Appointments in the Executive Management Team [STMicroelectronics press release, Sept 13, 2012]

                                                                                                                          STMicroelectronics, (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced today that, effective immediately, Georges Penalver has been appointed Executive Vice President, Member of the Corporate Strategic Committee, Corporate Strategy Officer. Penalver was formerly Managing Director of the Communication Business Group of Sagem and, more recently, Member of the Executive Board of France Telecom/Orange Group in charge of the Group’s Strategic Initiatives and Partnerships. He brings a wide experience in defining corporate strategies, leading businesses and implementing comprehensive transformation processes.

                                                                                                                          Jean-Marc Chery, Executive Vice-President, will take the additional responsibility of General Manager, Digital Sector, while maintaining his current role of Executive Vice-President, Chief Technology and Manufacturing Officer.

                                                                                                                          As a consequence of Chery’s expanded responsibilities, Eric Aussedat, General Manager, Imaging and Bi-CMOS ASICs Group; Joel Hartmann,Corporate Vice President, Front-end Manufacturing & Process R&D, Digital Sector, and Philippe Magarshack, Corporate Vice President, Design Enablement & Services, are promoted to Executive Vice Presidents while maintaining their previous scope of activities; Stéphane Delivré, Corporate Vice President, Global Chief Information Officer, will now report to the President & CEO.

                                                                                                                          Philippe Lambinet, Executive Vice President, Corporate Strategy Officer and General Manager, Digital Sector is leaving the company today to pursue other interests.

                                                                                                                          ST also announced it will present its new strategic plan in December. The objectives of the plan are to continue to accelerate the company’s roadmap towards the already announced financial model, taking into account the changed market environment and some specific customer dynamics, and to continue to ensure the future success of the company in total, with the two pillars, the Analog and the Digital businesses, both becoming as quickly as possible sustainable segments of ST.

                                                                                                                          About STMicroelectronicsST is a global leader in the semiconductor market serving customers across the spectrum of sense and power technologies and multimedia convergence applications. From energy management and savings to trust and data security, from healthcare and wellness to smart consumer devices, in the home, car and office, at work and at play, ST is found everywhere microelectronics make a positive and innovative contribution to people’s life. By getting more from technology to get more from life, ST stands for life.augmented.

                                                                                                                          In 2011, the Company’s net revenues were $9.73 billion. Further information on ST can be found at www.st.com.

                                                                                                                          Business insider brought in to fix ST [ElectronicsWeekly.com, Sept 14, 2012]

                                                                                                                          A heavyweight business insider has been brought in to address the deteriorating situation at STMicroelectronics.
                                                                                                                          Georges Penalver formerly at Sagem and France Telecom and a general partner at US-based investment fund Cathaya Capital, has been appointed Chief Strategy Officer of ST.

                                                                                                                          ST has two big problems: one is its jv ST-Ericsson which has run up debt of $1.2bn since starting trading in 2009. It is losing $250m a quarter.

                                                                                                                          The other big problem is a collapse in sales at ST. From $9.73bn in sales last year, sales are expected to be $8.6bn this year – about the same level as they were when the current CEO [Carlo Bozotti] took over in 2005.
                                                                                                                          On the one hand ST has a solid business in MEMS, discretes, power semiconductors and analogue, on the other hand it has slipped behind in the process technologies on which success in digital microelectronics depend.
                                                                                                                          Penalver’s job will be to find some resolution to these issues and he is expected to report with a new strategic plan in December.

                                                                                                                          Samsung and STMicroelectronics Enter Strategic Relationship for Advanced Foundry Services at 32/28nm Technology [Samsung press release, Sept 28, 2012]

                                                                                                                          Samsung Electronics, Co., Ltd., a world leader in advanced semiconductor technology solutions, announced foundry production of STMicroelectronics’ leading products using 32/28nm High-K Metal Gate (HKMG) process technology. Samsung Electronics’ foundry business has been selected by STMicroelectronics to provide it with products at the 32/28nm process node. The relationship has already resulted in taping-out of a dozen ST advanced system-on-chip (SoC) devices for mobile, consumer and network applications.

                                                                                                                          “We have successfully started production of STMicroelectronics’ new-generation 32/28nm SoC products,” said Kwang-Hyun Kim, executive vice president of foundry business, Device Solutions, Samsung Electronics. “A foundry relationship with ST demonstrates our commitment to advanced process technology and our 32/28nm HKMG process-technology leadership. We have aggressively ramped 32/28nm capacity and will continue to deliver the most advanced process solutions to our customers,” he said

                                                                                                                          Samsung and STMicroelectronics have developed 32/28nm High-K Metal Gate (HKMG) technology through participation in the International Semiconductor Development Alliance (ISDA). Samsung’s foundry business has offered access to 32nm HKMG process technology for early market leaders and 28nm HKMG process technology for customers looking for traditional migration benefits.

                                                                                                                          “In addition to delivering waves of innovative new products, another key to ST’s success in each of our target markets is working with industry leaders,” said Jean-Marc Chery, executive vice president, chief-technology officer for STMicroelectronics. “Both ST and Samsung have worked together on advanced process-technology development through the ISDA and that experience has provided significant insight into our ability to work together to meet our objectives and thus provide unique service to our customers in demanding and fast-moving markets.”

                                                                                                                          See Samsung Foundry: 32/28nm Low-Power High-K Metal Gate Logic Process and Design Ecosystem [March 2011]

                                                                                                                          TSMC 28-nm market share may drop in 2013: Topology [The China Post, Oct 4, 2012]

                                                                                                                          Taiwan Semiconductor Manufacturing Co.’s (TSMC) share in the 28-nanometer contract chip-making sector may drop from 80 percent to 50 percent next year on fierce competition from Samsung, reported research firm Topology yesterday.
                                                                                                                          Samsung has been active in expanding its contract manufacturing business and has raised capital expenditure for two years in a row, Topology said.
                                                                                                                          The Korean firm has turned a large part of its memory chip business into contract manufacturing, resulting in a sharp increase in foundry capacity that is expected to catch up with TSMC, it said.
                                                                                                                          “Samsung’s migration into contract manufacturing has sent shockwaves throughout the industry,” said Chen Lan-lan, researcher with Topology. “Its move to raise capital expenditure and transform memory capacity into foundry capacity indicates its ambition in the contract manufacturing sector.”
                                                                                                                          This year, Samsung’s contract manufacturing capacity is about a third of TSMC’s. Our forecast indicates next year the figure will change to one-half,” she added.
                                                                                                                          According to her, it was also worth noting that Samsung’s 300-millimeter capacity has surpassed that of United Microelectronics and GlobalFoundries, the latter of which has also been active in expanding high-end production capacity. These factors will combine to bring fierce competition to TSMC, she said.
                                                                                                                          “Strong demand for 28-nm have enabled TSMC to report record sales several times this year. Yet next year, with expansion by Samsung and GlobalFoundries, the shortage in 28-nm capacity will improve, and this is expected to bring down TSMC’s share in the 28-nm market,” she said.

                                                                                                                          Full Interview: Jean-Marc Chery, CTO and CMO at ST [ElectronicsWeekly.com, Sept 10, 2012]

                                                                                                                          In the first week of September STMicroelectronics taped out the 28nm FD-SOI NovaThor integrated modem and applications processor designed by ST-Ericsson.
                                                                                                                          The chips are being made at Crolles. The Crolles 28nm FD-SOI line has capacity for 300-500 wafers per week. The process is in the course of being transferred to Globalfoundries’ Dresden fab where it will be ready for mass production in the second half of 2013, said Chery.
                                                                                                                          The decision to go with FD-SOI was taken in July 2011 after an earlier decision to use bulk [?HKMG?] “28nm bulk with HKMG looked good enough to address smartphones,” said  Chery, “over a year ago we taped out HKMG 28nm at Samsung.”
                                                                                                                          Having made the decision to adopt FD-SOI last July, it has taken a year to get the process to the point where it will be ready to start running 28nm FD-SOI ICs next week.
                                                                                                                          The 28nm FD-SOI process produces ICs with superior performance to Intel’s bulk 22nm finfet process, said Chery. Intel’s ’22nm’ process has a drawn gate length of 27nm.
                                                                                                                          “Finfet generation 1 on bulk does not perform as well as SOI performance at 28nm,” said Chery, “finfet generation 1 has good leakage without performance or performance with high leakage.”
                                                                                                                          “Finfet generation 1 on 22nm is a complex technology and doesn’t give the best trade-off between performance and leakage,” said Chery.
                                                                                                                          “Finfet generation 2 on 14nm will be the same performance as FD-SOI but much more complex and with less design legacy,” added Chery.
                                                                                                                          How will ST compete when the processes deliver the same performance? “Our competitive advantage will be in our design technology,” replied Chery, “they’re used to making PC chips for high performance, we are in the world of wireless devices where the priority is power consumption. They’re OK with small volume high value PC chips, not with the very high volumes of tablets and phones where volumes are very high and prices are low.”
                                                                                                                          ST reckons it has a big lead in FD-SOI particularly in the UTBB [Ultra Thin Body and BOX (buried oxide)] refinement of FD-SOI where the value added is the thickness of the silicon dioxide BOX which is 25nm.
                                                                                                                          Compared to bulk processes, the FD-SOI process has 10% fewer steps and three fewer masks reducing lead time by 10%. It is scalable to 14nm and has a processing cost equivalent to bulk.
                                                                                                                          “Planar 28nm UTBB SOI is an evolution of 28nm bulk,” said Chery, “it has the same design rules and the same BEOL process. The FD-SOI FEOL process has 80% in common with 28nm bulk.”
                                                                                                                          ST is keeping a foot in the bulk CMOS camp. “We’re prototyping 28nm bulk at Samsung,” said Chery, “we start mass-production on 32nm and 28nm next year.”
                                                                                                                          Bulk CMOS is introduced first at Samsung, then at Globalfoundries,” said Chery, “SOI is being introduced first at Globalfoundries where it will be ready for mass production on 28nm FD-SOI in H2 2013. And we can use Samsung for SOI if we need to.”
                                                                                                                          The Samsung and Globalfoundries fabs are synchronised under the IBM Common Platform Alliance so all the design rules are compatible and the same product fits both fabs.
                                                                                                                          The FD-SOI process will see ST through the 28nm and 20nm nodes without ST having to bother with finfets.
                                                                                                                          “At 28nm and 20nm we can offer a planar SOI solution which offers the best combination of performance and leakage,” said Chery
                                                                                                                          The FD-SOI vs finfet competitive battle will be joined in earnest at the 14nm node, reckons Chery.
                                                                                                                          “Intel’s 14nm finfet process will be fantastic,” said Chery, “so Samsung and TSMC are running fast to introduce a competitive 14nm finfet process.”
                                                                                                                          ST’s FD-SOI process will scale to 14nm but, after that, ST is looking for partners to develop the technology further.
                                                                                                                          “The challenge for us will be at 10nm,” said Chery, “because bulk will disappear at 10nm. We need to get others to join the club at Globalfoundries – it’s in our interest to prepare a club for 10nm.”
                                                                                                                          Chery reckons the FPGA people and the ARM camp could be possible members.
                                                                                                                          STMicroelectronics’ strategy of being a ‘competitive follower’ means that the advantage in process technology being gained by the ASML, Intel, Samsung, TSMC lithographic alliance will not affect ST.
                                                                                                                          We intend to be a competitive follower,” says Jean-Marc Chery, Chief Manufacturing and Technology Officer at ST, “we won’t have the first machines. We’ll have them when production is mature.We won’t fight to take machines at the same time as Intel, TSMC and Samsung but we’ll take them when they’re mature. That’s our strategy of being a competitive follower.”
                                                                                                                          ST gets its basic process technology from IBM’s Common Platform Alliance and, if IBM can’t get the latest production machines early, that will affect IBM’s ability to develop processes in a timely manner for distribution to its alliance partners.
                                                                                                                          So is IBM being out of the ASML litho party a problem for the Common Platform Alliance? “We have to decide that at the top executive level,” said Chery adding that he would be going to talk to IBM about it quite soon.
                                                                                                                          The absence of EUV machines doesn’t mean process development has to stop. “Intel have said they can cope with 14nm using double or triple patterning,” said Chery.
                                                                                                                          As for ST getting its hands on the latest equipment in a timely manner, Chery points out: “ASML capacity is booked 18-24 months in advance. You pay up-front and they will guarantee supply.”
                                                                                                                          Being left out of the ASML litho party is more of a problem for Globalfoundries, reckons Chery.
                                                                                                                          Part of Chery’s brief at Crolles, as Chief Manufacturing Officer, is to keep the fab there running wafers as cost effectively as anywhere else in the world.
                                                                                                                          The challenge Crolles has in manufacturing technology is to offer a competitive supply chain,” said Chery. ST benchmarks its manufacturing cost against foundry manufacturing cost.
                                                                                                                          So how does Crolle’s 300mm fab capable of running 14,000 wpm at the moment compete on cost with TSMC’s GigaFabs running 100,000 wpm?
                                                                                                                          We are competitive in terms of purchasing price,” replied Chery, pointing Crolles is built to make 5000 wafers per week. (it’s running 3,500 wpw at the moment). “At 5K wpw, below 40nm, the advantages of the dimension of scale is getting lower,” he said, “and full automation means we do not need the high volume to be competitive; with a high level of automation we can manage average volume with strong efficiency.”
                                                                                                                          Crolles currently produces 22% of ST’s annual sales – about $2 billion worth. “The number of good circuits per wafer is between 70% and 90% depending on complexity and ramp up. The challenge is always how to align the wafer cost to TSMC’s selling price.”
                                                                                                                          The manufacturing strategy varies with the industry cycle. In a down-cycle the strategy is to have 60% out output manufactured in-house and 40% out of house; in the up-cycle the proportions are reversed: 60% out at foundry and 40% in-house.
                                                                                                                          ST uses the Fast-Yield Learning Curve technology of PDF Solutions.which has brought days-per-mask-level down to 0.7. “With one customer’s apps processor on 40nm we have achieved 0.36 days per mask level,” said Chery.
                                                                                                                          ST will pursue two options at 14nm. “We don’t want to be a follower of Intel,” said Chery, “at 14nm we’ll have both options: 14nm finfet in bulk – from the Common Platform Alliance, and 14nm FD-SOI planar.”

                                                                                                                          ST-Ericsson boosts smartphones and tablets to 2.3 GHz! [silicon.fr, July 12, 2012] as translated by Google:

                                                                                                                          The L8580 is a component NovaThor ARM dual-core clocked at 2.3 GHz, dedicated to mobile terminals. A solution that relies on burning in FD-SOI 28nm STMicroelectronics.
                                                                                                                          We have seen previously, the 28 nm FD-SOI STMicroelectronics is a very effective means between 28 nm and 22 nm, but also an interesting alternative (and affordable) Intel 3D transistors.
                                                                                                                          ST-Ericsson is the first to adopt this technology in theNovaThor L8580 , L8540 successor (engraved in 28 nm “bulk”). This component has been designed in Grenoble and Crolles, prototyped and then melted Crolles. Of 100% “made in France”! It features two ARM Cortex-A9 clocked at 2.3 GHz , or 24% more than the L8540 (1.85 GHz maximum).
                                                                                                                          A champion of energy efficiency
                                                                                                                          But this is not all: 1.85 GHz, consumes 35% less energy than its predecessor. Better, a voltage of 0.6 V, it is clocked at 1 GHz , almost twice than competitive offerings (which must make the best use of 0.9 V to achieve such a frequency).
                                                                                                                          The L8580 is faster than most dual-core ARM chips, but also more energy in times of low system load (which constitute the bulk of the activity of a computer system).
                                                                                                                          ST-Ericsson believes that a classic smartphone, this component will provide an extra day of autonomy compared to L8540, which can result in a surplus of respectively 4 hours or 2:30 in high-speed web browsing or reading HD video.
                                                                                                                          The top mobile graphics
                                                                                                                          In addition to its particularly high operating frequency, the NovaThor L8580 is assisted by PowerVR SGX544 GPU clocked at the frequency of very valuable 600 MHz (500 MHz cons above, or 20%). It is among the very best in the mobile world in raw performance, as operating frequency.
                                                                                                                          Finally, the SoC integrates a DDR2 memory controller and modem LTE is for all smartphones and tablets.
                                                                                                                          On the actual availability of this offer, STMicroelectronics indicates that the scheme component will be fixed within a month, the chip start to be melted before the end of 2012 .

                                                                                                                          II. Summary: ST-Ericsson’s Fundamental repositioning

                                                                                                                          There was a series of fundamental announcements from ST-Ericsson on MWC 2012, then in March and a final one in April last week. The essence of all this is that the company’s modem business is set to grow further within ST-Ericsson while its application processor business will continue to grow within its ST-Microelectronics parent, and its integrated ModAps are repositioned for maximising the chances to achieve true market leadership in the next two years.

                                                                                                                          In terms of the conventional, Boston matrix based decisions such a strategic repositioning is to be achieved by the following actions (their general meanings are shown in the brackets):

                                                                                                                          Meanwhile it has also been reported that HTC is developing its own CPU for lower end smartphones with ST-Ericsson [Unwired, April 23, 2012]

                                                                                                                          HTC is following in the footsteps of Apple and Samsung, and is now working on its own dedicated applications processor. According to China Times, the Taiwanese smartphone maker has already signed memorandum of cooperation with ST-Ericsson to co-develop the chip.

                                                                                                                          Contrary to high performance Samsung and Apple [proprietary] CPUs which power their flagships, the new HTC processor will run the lower end smartphones. The devices with new chip will start shipping in volume sometime in 2013.

                                                                                                                          Note that ST-Ericsson is not the only proprietary SoC partner for HTC as indicated in the latest updates to Tech investment banking expertise to strengthen the unique value focus of growing the HTC brand and to achieve high growth again [this “Experiencing the Cloud” blog, April 18-25, 2012].


                                                                                                                          III. Detailed information: ST-Ericsson’s Fundamental repositioning

                                                                                                                          For the most recent information about that see: STMicroelectronics NV 2012 Investors & Analysts Day (NY), May 23, 2012 where a webcast is available as well. ST-Ericsson’s CEO Didier Lamouche had a downloadable plenary session presentation there on the following topics:

                                                                                                                          • The new strategic direction
                                                                                                                          • Addressing the right market
                                                                                                                          • Product Roadmap
                                                                                                                          • Customer traction continues

                                                                                                                          From that I will include here the following updated roadmap information:

                                                                                                                          image

                                                                                                                          image

                                                                                                                          Ericsson’s JV ST-Ericsson announces new strategic direction [Ericsson press release, April 23, 2012] with slides inserted as appropriate from ST-Ericsson’s CEO (Didier Lamouche) presentation to analysts
                                                                                                                          (note: the ST-Ericsson press release is essentially same)

                                                                                                                          • Focused R&D effort and partnership with STMicroelectronics in the development of future application processors
                                                                                                                          • Restructuring program to lower break even point and accelerate time-to-market
                                                                                                                          • Ericsson committed to the 50/50 joint venture and its new strategic direction

                                                                                                                          ST-Ericsson – the 50/50 joint venture owned by Ericsson (NASDAQ:ERIC) and STMicroelectronics (NYSE:STM) – announced today the guidelines of its new strategic direction. Within the company’s new strategic direction it has signed an agreement to transfer its stand-alone application processor R&D activities to STMicroelectronics, and to take additional measures to accelerate time-to-market and lower the breakeven point.

                                                                                                                          “ST-Ericsson’s strategic shift is a key step in ensuring that the company can reach sustainable profitability and cash generation. With the focus on ModAps for smartphones and tablets it will allow device manufacturers to rapidly bring best-of-breed devices to the market,” said Hans Vestberg, president and CEO of Ericsson and Chairman of ST-Ericsson Board of Directors.

                                                                                                                          The new strategic direction announced by ST-Ericsson today builds on four main pillars:

                                                                                                                          1.      Strategic Focus

                                                                                                                          The Company re-affirms its vision to be a leader in smartphone and tablet platforms and unveiled a new strategy based on repositioning the whole business model. The new strategic direction leverages on ST-Ericsson’s unique capability to deliver complete system solutions for smartphones and tablets; competitive integrated modem plus application processor solutions (ModAp) will be the key differentiating offering through a combined approach of development and alliances.

                                                                                                                          image

                                                                                                                          The key building blocks of the complete system solution – application processors, modems, connectivity as well as power, RF, analog and mixed signal – will be developed either directly or through partnerships and alliances to limit and optimize the R&D effort, while enabling highly compelling solutions for its customers to bring innovative devices to the market in a timely manner. The Company will continue to develop modem IP, a key competitive enabler, sell thin modems and possibly license modem IP to third parties.

                                                                                                                          2.      Partnership already signed: application processor

                                                                                                                          As a first step of this new strategy, ST-Ericsson has announced that it will partner with STMicroelectronics in the development of future application processors. The combination of the ST-Ericsson and STMicroelectronics teams will create a world-class organization, having the appropriate size, skills and strength to win in the growing multi-segment application processor market.

                                                                                                                          Under the terms of the agreement, ST-Ericsson, at closing date[1], will transfer its application processor R&D activity and employees to STMicroelectronics and will then integrate the application processor in ModAp platforms for smartphones and tablets under a license agreement from ST. In addition to this, the two companies have entered into a commercial agreement to jointly promote and offer stand-alone processors and thin modems, respectively, to a broader range of customers and applications.

                                                                                                                          The entire ST-Ericsson application processor R&D team will continue, under a transitional cost sharing model, the development of the current product generation, ensuring full continuity of ST-Ericsson’s product roadmap and full service to customers.

                                                                                                                          [1] completion of labor law related procedures and merger control approvals, if applicable, are the sole conditions precedent to closing of the agreement.

                                                                                                                          3.      Accelerate time-to-market

                                                                                                                          In addition to this strategy change, the company will focus on improving R&D execution and accelerating time-to-market, while reducing the overall operating expenses. The activities will be consolidated into a significantly smaller number of sites, which will be specialized by technology as “centers of excellence.” The larger ones will also integrate a wider portion of the smartphone platform value chain, with a view to optimizing time-to-market and delivery efficiency.

                                                                                                                          image

                                                                                                                          This comprehensive site transformation is aimed at enhancing the effectiveness of operations and will significantly reduce the number of sites. Additionally the Company aims at reducing its SG&A expenses by about 25 percent versus 2011 by streamlining the general and administrative activities and substantially reducing positions within the top paid members of the management.

                                                                                                                          4.      Lower the breakeven point

                                                                                                                          As a result of all the above initiatives, the Company – subject to negotiations with work councils and employee representatives as required – foresees a global workforce reduction of 1,700 employees worldwide, including the employees that would be transferred to ST as part of the partnership announced today.

                                                                                                                          image

                                                                                                                          Annual savings of about $320 million are expected from the new and from the on-going restructuring plans, upon completion by the end of 2013. Total restructuring costs are estimated to be approximately $130 to 150 millionthrough completion. Specific impact on country or site level related to the plan will depend on local negotiations based on applicable legislation.

                                                                                                                          image

                                                                                                                          Conference call

                                                                                                                          An analyst conference call, hosted by Didier Lamouche, president and CEO of ST-Ericsson, will be held on April 23, 2012 at 18:00pm Central European Time (CET). Call-in numbers as well as supporting slides, will be available at www.stericsson.com/investors/investors.jsp.

                                                                                                                          About ST-Ericsson’s products

                                                                                                                          An application processor is a complex system-on-a-chip (SoC) for smartphones and tablets that supports applications and software running on mobile devices. In a similar way that a  traditional general purpose microprocessor in a computer performs all processing and control functions, an application processor powers complex mobile devices efficiently processing functions such as user interface, graphics processing, phone calls, audio and video recording and playback and web browsing.

                                                                                                                          ST-Ericsson is a 50/50 joint venture between STMicroelectronics and Ericsson, established in February, 2009. ST-Ericsson’s result is accounted for in accordance with the equity method.

                                                                                                                          About ST-Ericsson

                                                                                                                          ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. The company is a leading supplier to the top handset manufacturers and generated sales of $1.7 billion in 2011. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in Geneva, Switzerland.

                                                                                                                          www.stericsson.com

                                                                                                                          www.twitter.com/STEricssonForum

                                                                                                                          Ericsson CEO Committed to ST-Ericsson Venture [Bloomberg YouTube channel, April 25, 2012]

                                                                                                                          Hans Vestberg, chief executive officer of Ericsson AB, discusses the company’s gross margin, ST-Ericsson joint venture and opportunities in mobile broadband. He speaks with Bloomberg Television’s Manus Cranny. (Source: Bloomberg)

                                                                                                                          STMicroelectronics Announces its Next Step in Multimedia Convergence [STMicroelectronics press release, April 23, 2012] with slides inserted as appropriate from ST-Ericsson’s CEO (Didier Lamouche) presentation to analysts

                                                                                                                          • To offer a single application processing platform to serve all markets
                                                                                                                          • Combining strengths with ST-Ericsson through a strategic partnership
                                                                                                                          • ST’s consolidated results to benefit from ST-Ericsson’s new strategic direction and related savings

                                                                                                                          Geneva, April 23, 2012

                                                                                                                          STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced today the next step in its multimedia convergence strategy, which will focus on offering a single application processing platform to serve a broad range of multimedia devices like set-top-boxes, TVs, cars, smartphones and tablets.

                                                                                                                          image

                                                                                                                          ST signed an agreement with ST-Ericsson on the development of future application processors. Under the terms of the agreement, ST will take on ST-Ericsson’s application processor development R&D activity and then license back its technology to ST-Ericsson for integration into their ModAps (competitive integrated modem plus application processor solutions) for smartphones and tablets. Additionally, the two companies entered into a commercial agreement to jointly promote and offer stand-alone application processors and thin modems to a broader range of customers working across the entire spectrum of electronics applications.

                                                                                                                          image

                                                                                                                          The partnership contemplates the transfer to ST of highly skilled employees from ST-Ericsson, joining forces with the current ST R&D teams working on application processors. The agreement includes a transitional cost sharing model, followed by a royalty scheme from ST-Ericsson to ST. This transfer is subject to the completion of consultations with work councils and employee representatives, which ST currently estimates to be completed by July 1, 2012.

                                                                                                                          The partnership with ST-Ericsson is part of a wider new strategic direction announced today by our joint venture aiming to offer, through a combined approach of development and partnerships, competitive integrated ModAps, in addition to capturing a total of $320 million of annual savings from their new and on-going restructuring plans. The expected ST-Ericsson savings will benefit ST’s consolidated results, starting in Q3 2012, through the completion of the savings plans by the end of 2013.

                                                                                                                          “With this agreement, ST is one of very few companies to provide complete solutions based on a single application processing platform that delivers the features required by its customers and the whole ecosystem,” said Philippe Lambinet, ST’s Corporate Strategy Officer and Executive Vice President and General Manager of the Digital Sector. “By combining ST-Ericsson’s skills and deep knowledge of the smartphone and tablet business with ST’s strengths in IPs and consumer platforms, we now have capabilities that are second-to-none in mastering all of the key technologies necessary to serve the multi-screen society.”

                                                                                                                          “This is a further major step forward in our ambition for undisputed leadership in multimedia convergence, one of the two pillars of our vision together with Sense and Power,” said Carlo Bozotti, president and CEO of STMicroelectronics. “By partnering with ST-Ericsson in such a critical and R&D-intensive domain, we are able to leverage our investments over a wider range of applications and market opportunities, while capturing significant synergies benefiting both ST-Ericsson and ST. Overall, the agreement announced today well positions ST and ST-Ericsson for future success in application processors. In addition, ST, as a shareholder of ST-Ericsson, will benefit from the joint venture’s new strategic plan and expected cost savings.”

                                                                                                                          The closing of the deal is subject to completion of labor law related procedures and merger- control approvals, if applicable.

                                                                                                                          EE Times Analysis: ST-Ericsson rescue plan underwhelms [April 24, 2012]

                                                                                                                          The plan as laid out is for ST-Ericsson to be a developer of mobile device SoCs and firmware to create “platforms” based on a mix of home-grown and licensed-in IP blocks.

                                                                                                                          Lamouche called the strategy ModApp indicating that ST-Ericsson would put together modem-plus-application processor platforms. To that end ST-Ericsson will continue to develop modem IP, which it considers its crown jewels, but the ARM-based application processor cores and about 500 jobs are being passed to STMicroelectronics. These are part of the 1,700 jobs being cut out of ST-Ericsson. We don’t know the exact number but Carlo Ferro, chief operating officer, said the application processor group represented several hundred jobs but by no means the majority of the 1,700 jobs being axed.

                                                                                                                          … it seems inconceivable that STMicroelectronics shareholders could think it a good deal to carry ST-Ericsson for the next two years.

                                                                                                                          Perhaps what we will see is the movement of certain technology development operations out of ST-Ericsson to create licensing opportunities, thereby allowing the remaining ModApp company to be sold off. But to have any value it has to continue to get design wins, must continue to lay off engineers and must continue to drive down cost.

                                                                                                                          Q1 2012 Earnings Conference Call Remarks [STMicroelectronics, April 24, 2012]

                                                                                                                          … The savings specifically related to the partnership will be achieved in two steps: 1) a transitional cost sharing model for the current generation of application processor; and 2) synergies related to a common ecosystem, which for us is ARMbased. In addition, royalties will be paid by ST-Ericsson to ST to integrate the next generation application processor into their ModAp platforms.

                                                                                                                          Overall, this initiative is an important, first step in ST-Ericsson’s move towards leadership and improved financial returns.

                                                                                                                          We will see measurable progress in reducing the quarterly operating losses at STEricsson in the second half of this year leading to a significant reduction in losses as we exit the year.

                                                                                                                          Now let me give you additional details on the partnership announced with STEricsson for application processors which is part of our plans to advance our multimedia convergence strategy. It is very clear that delivering a similar experience across multiple screens is what service and content providers are looking for. So what might seem to be individual markets are actually very related markets as consumers expect their smart TV, car, smartphones and tablets to offer them the same experience.

                                                                                                                          ST is building a unique and competitive advantage by unifying its application processor platforms. As we outlined yesterday in our press release, we are adding the wireless application processor know-how within ST-Ericsson to the extensive multimedia capabilities ST has already developed within its Digital Sector for Set top Boxes and TV.

                                                                                                                          With respect to Wireless, total revenues, as expected, decreased significantly due to a drop in sales of new products at one of ST-Ericsson’s largest customers, in addition to the usual seasonal effect and to the continued decline of ST-Ericsson’s legacy products. In the first quarter, however, ST-Ericsson reached a milestone on the new product sales side as the NovaThorTM U8500 ModAp systems started to successfully ramp at Samsung and Sonywith smartphones from both now available on the market.

                                                                                                                          STMicroelectronics’ CEO Discusses Q1 2012 Results – Earnings Call Transcript – Q&A part [Seeking Alpha, April 24, 2012]

                                                                                                                          … the partnership with ST is based of course on a transfer of the application team from ST-Ericsson team to ST … also it’s based on the fact that we see now that the real opportunity to extract synergies from merging these two teams. So if the question is why not before, our consumer business was based on a proprietary microprocessor and today is based on the ARM platform. The ST-Ericsson application processor is also based on the ARM platform, as you know. So merging these two teams, we have the potential and we have the plan to extract significant synergies from the merging of the two activities.

                                                                                                                          … of course, we also hope and we are confident that the ST-Ericsson can expand the customer base. I am very happy to see this new Galaxy phone from Samsung. It’s a great phone. Initially it was for the emerging market. Now, I understand it’s for all the markets. I saw phone in Europe now also. And of course, we also plan to fill these fabs with the new wireless customers. …

                                                                                                                          … What ST transferred to the joint venture was a device that was called Mont-Blanc, that is now called U8500, and this device is exactly the same device that is now ramping in high volume production in one of the topline in Samsung. This was our contribution to the joint venture, and I think it was an important contribution. It is the fundamental part of the joint venture today. …

                                                                                                                          In terms of the synergies, that we will exploit there is some positive synergies, sales opportunities and some synergies related to avoiding to do twice the similar things by unifying the resources, the teams between ST-Ericsson and ST, inside ST. We will avoid duplications, we will avoid doing things twice and will be a lot more efficient and clearly we’ll be able to save cost, internal cost inside ST, R&D cost but also cost of third-parties because if we have to do only one software boarding of the given platform, it saves a lot of money rather than to do it twice. So that’s pretty obvious and of course we will extract cost synergies.

                                                                                                                          Now on the topline synergies, I want to say something which is the application processor market is estimated to be more than 2 billion units per year by 2015 and smartphones it’s already half of that bucket. So there is of course a great opportunity in smartphone base and to working together with ST-Ericsson of course will capture as much as we can in that particular half of the market.

                                                                                                                          But the other half is where ST is strong, it’s consumer, its automotive, it’s industrials, it’s medical, there is a lot of applications for application processors and with this combination, we do intent to explore also topline opportunities. So that’s also part of our strategy and that’s a very important reason why we are unifying our single platforms in all the market, not on wireless, not only set top boxes, but across all segments.

                                                                                                                          STMicroelectronics Reports 2012 First Quarter Financial Results [STMicroelectronics press release, April 23, 2012]

                                                                                                                          Q1 2012 – Product and Technology Highlights

                                                                                                                          ST-Ericsson

                                                                                                                          • Products
                                                                                                                            • Announced at Mobile World Congress, the new NovaThor™ L8540 is an LTE/HSPA+/TD-HSPA-enabled integrated smartphone platform with the powerful application processor and modem integrated on a single die, and is scheduled to sample to customers in the second half 2012.
                                                                                                                            • Unveiled the CG2905, the industry’s first connectivity platform solution with simultaneous support for GPS and GLONASS technology, Bluetooth and FM Radio all integrated on a single 40nm device.
                                                                                                                            • Introduced first fully integrated wireless charger for mobile phones with the PM2020.
                                                                                                                          • Customers
                                                                                                                            • Samsung is now a customer of the ST-Ericsson NovaThor™ platform. The new Samsung GALAXY S Advance Android-powered smartphone uses the ST-Ericsson NovaThor™ U8500system.
                                                                                                                            • Xperia™ P, Xperia™ U, and Xperia™ sola are the first three smartphones by Sony Mobile Communications to use the NovaThor U8500 ModApsystem, combining application processing, modem and connectivity.
                                                                                                                            • Thor™ M5780 HSPA+ modem powers the next-generation Panasonic Elugasmartphone.
                                                                                                                            • Ontim WP8500 tablet to be the first commercially available Android-based tablet using the NovaThor U8500 system.
                                                                                                                          • Partners/technology
                                                                                                                            • Selected fully depleted silicon on insulator (FD-SOI) technology for use in future mobile platforms, leveraging ST technology based on Soitec SOI, which will enable enhanced performance from the ST-Ericsson NovaThor™ platform at much lower battery usage – as much as 35 percent lower power consumption at maximum performance.
                                                                                                                            • Continued cooperation with metaio, reaching another milestone in supporting metaio’s new 3D object tracking technology.
                                                                                                                            • Joined the W3C Core Mobile Web Platform Community Group kicked off by Facebook.
                                                                                                                            • SRS Labs has made their TruMedia audio processing technology available on the ST-Ericsson Snowball development platform.

                                                                                                                          ST-Ericsson Complete LTE Platform & Technical Demos – MWC2012 [ARMflix, March 2, 2012]

                                                                                                                          Gerard Cronin from ST-Ericsson shows us their newly launched mobile devices – inlcuding Sony Xperia U & P, Samsung Galaxy S Advance – then discusses and demos the next generation complete NovaThor LTE platform.

                                                                                                                          ST-Ericsson Clear market strategy - smartphone volumes - tablet growth -- 31-Jan-2012

                                                                                                                          ST-Ericsson Clear market strategy -- 31-Jan-2012
                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          [20:56] But what is also clear which segments of those markets we intend to grab. This chart is illustrating actually the growth that we are projecting between 2012 and 2014 in terms of units for the smartphone market. … dividing into four segments from the entry to the premium. The largest segments are the high-end and mid market, and that is clearly where we want to focus, without exiting fully the entry market. But clearly our mainstream focus will be on the high and the mid. If we can tactically address the premium we will do but it will not be the basis of our mainstream strategy. If we can tactically address the entry we will do but it will not be the basis of our strategy. Our strategy will be focused on the mid and the high-end.

                                                                                                                          Why and how we will do that? We will do that via one initiative which is our unique capability, I will show that later on, to integrate the two critical silicon engines, software engines that are powering smartphone and tablet applications. The application processor and the modems. Our critical value add, our differentiating factor is our unique capability to integrate those functions into one chip. This is exactly what we want to do. [22:37]

                                                                                                                          ST-Ericsson Focused portfolio approach -- 31-Jan-2012
                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          [28:02] … that is what has been shown already before – the focus. The U8500 is clearly our battle horse for the coming months and weeks, and quarters. Shipping in volume, with some products, at key customers. The first product that we would like to announce is this one today: U8520 which is in fact an extension of U8500. It is a lower cost, optimized version. Basically we are reusing all the software and legacy of the U8500. …

                                                                                                                          What we would like to announce today which is brand new: the first ModAp from the joint venture [L8540]. The first piece of silicon and the first software package built out of those two platforms: the A9540 application processor and the M7400 LTE modem. … this is the first ModAp the JV is going to bring on the market before the end of the year [also using 28nm FD-SOI]. …

                                                                                                                          [From the press release (see much further below): The NovaThor L8540 integrates a dual-core 1.85GHz ARM Cortex-A9 processor, a powerful Imagination PowerVR™ SGX544 GPU running at 500Mhz and an LTE/HSPA+/TD-HSPA modem on a single 28nm die. Thanks to its ultra-low voltage operating mode the NovaThor L8540 extends battery life for typical smartphone usage by up to 30% compared to platforms in the market today. … scheduled to sample to customers in Q3 2012.]

                                                                                                                          This product will be also complemented by two different flavors:
                                                                                                                          – one, which is a low-cost version of this one to address the lower tier of the market, and to address lower price point phones; and
                                                                                                                          – another one, which is a boosted version in [using 28nm FD-SOI] terms of performance and power consumption.

                                                                                                                          So the strategy is really to simplify our roadmap. To develop not too many products, to develop extensively and efficiently one platform and to try to refine it, and to extend our range of products by different flavors to it. [30:20]

                                                                                                                          [33:21] As I said before:
                                                                                                                          – we will derive one version of this product, which we are not announcing today (we will announce it later on), which will be a low cost, streamed down version, simple technology to address the lower part of the market; and in parallel
                                                                                                                          – we will also try to boost the performance of this platform with a new technology feature called FD-SOI … in order to address a different segment of the market, which is the highest performance area of the market, or the lower power consumption part of the market. [34:00]

                                                                                                                          ST-Ericsson Differentiation through integration -- 31-Jan-2012
                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          [34:15] Our know-how is not only to be able to bring to the market high-performance application processor, not only to be able to bring to the market high-performance modems, but also—essentially—to bring them together. In another form of what we call ModAps, integrated solution of modem and application processor. Why we do that? To save cost. For example we have put here, on this chart what our integrated platform brings to the customer, to the product. In terms of power saving, in terms of size saving, compared to a dual chip solution.

                                                                                                                          It is bringing 10% power improvement, 15% size saving (which obviously in smartphone is something you want to do), 20% less components (so it means 20% less BOM). Of course that is exactly what our customers want, and by definition less workers.

                                                                                                                          Why do I insist on that? Because I believe there is only two companies in the industry today which are capable to bring these kind of technology on the market, and we are one of the two. [35:33]

                                                                                                                          Important note: With ModAp as one of the key differentiators the premium and somewhat even the high performance markets will be served with matching of the ST-Ericsson’s leading edge modem chips to the leading edge products of the application processor vendors as seen on the following slide of the briefing presentation.

                                                                                                                          Now see first the information related to the Thor M7400 modem:

                                                                                                                          “Our high-speed Thor™ modem revenue grew more than 20 percent sequentially as new HSPA+ phones continued to ramp in the market. Also in the quarter [i.e. in Q2 CY2011] we delivered first samples of our Thor M7400 LTE modem
                                                                                                                          From: ST-ERICSSON REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS [July 20, 2011]

                                                                                                                          ST-Ericsson Thor M7400 -- 31-Jan-2012
                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          [36:20] … you need the bricks that are extremely performing, extremely high-level. We are proud to have today probably the most brilliant product on the market. We need to bring it to the market now. This will be done this year, before the end of the year. We’ve got already an award at CES for this product.

                                                                                                                          This is our latest LTE M7400 modem. With revolutionary architecture, meaning that we’ve decided years ago to start from a blank piece of paper and to rewrite totally what it takes to do a modem capable to have a global coverage up to 8 bands. So we are going to be ready to go forward for the next 10 years with this type of technology. Those are the critical elements that are going to be the characteristics of this product.

                                                                                                                          Just to give you one information. And again, coming from a different industry you will understand why I am insisting on that.

                                                                                                                          This modem is less than 50 mm2, very small. 7 mm by 7 mm piece of silicon. It contains 10 million lines of code. Why do I mention the use of this number? I will compare this number to another number which for me was before this astonishing.

                                                                                                                          The largest supercomputer in Europe, #5 in the world, designed to manage in parallel 100 thousand processors, delivering the most powerful engine to the market in Europe 2 years ago, was powered by a middleware that comprised 1 million lines of code. This piece of silicion, 7 [mm] by 7 [mm] contains 10 millions.

                                                                                                                          Just to calibrate you. Just to make you understand why you need incredible R&D power, incredible innovation capabilities, but incredible sense of delivery also to bring this type of performance to the market. We will do that. Takes a bit of time, takes a lot of energy, sometimes it takes some delays unfortunately, but we will bring it to the market. We are committed to do so. [39:14]

                                                                                                                          THOR™ M7400 LTE AND HSPA+ [ST-Ericsson, excerpted on March 12, 2012]

                                                                                                                          Paves the way for global LTE devices
                                                                                                                          The Thor™ M7400 is a new generation of multimode mobile broadband modem. It supports the latest LTE, HSPA+ Dual Carrier and TD technologies. The small form factor and high power efficiency of the M7400 enable slim form factor smartphones, tablets and other mobile broadband enabled devices. The advanced multimode RF design offers new level of flexibility to support regional LTE FDD/TDD/HSPA bands in Asia, Europe and North America in combination with global HSPA/EDGE.
                                                                                                                          A breakthrough in modem architecture delivers an optimum combination of hardware acceleration, for lowest power consumption, and flexible execution in software allowing feature and performance enhancements in existing hardware.
                                                                                                                          Equipped with the latest communication interfaces it enables efficient integration between application processor and modem, including memory-less modem design when combining with an application processor.
                                                                                                                          HIGHLIGHTS
                                                                                                                          Truly global
                                                                                                                            • LTE FDD/TDD, HSPA+, TD-SCDMA, EDGE
                                                                                                                            • Radio supporting up to 8 LTE/WCDMA/GSM bands.
                                                                                                                              A streamlined modem
                                                                                                                            • Smallest two-chip thinmodem solution
                                                                                                                            • Power efficient architecture
                                                                                                                            • Highly integrated radio solution
                                                                                                                              For all devices
                                                                                                                            • Interfaces for data devices and smartphone application processors
                                                                                                                            • Memory-less modem design possible when combined with an application processor
                                                                                                                            • Complete and pre-tested reference design

                                                                                                                          FD-SOI: A process booster for http://blog.stericsson.com/blog/2012/04/st-ericsson-general/fd-soi-a-process-booster-for-st-ericssons-next-generation-novathor-part-1/ST-Ericsson’s next generation NovaThor, Part 1 [ST-Ericsson Technology Blog, April 17, 2012]

                                                                                                                          With the recent evolution in smartphone capabilities consumer expectations are rising fast. Ultra-fast multicore Gigahertz processors, stunning 3D graphics, full HD multimedia and high-speed broadband connectivity have become the norm for high-end devices. Consumers expect these features to be delivered in a device that is slim, light and can last for at least as long as their previous phones did. For our customers, the product designers, this translates into requirements for delivering high performance at low power in a cost effective manner. Fully Depleted Silicon On Insulator – or FD-SOI – is a technology that addresses exactly these requirements.

                                                                                                                          At Mobile World Congress, our CEO Didier Lamouche confirmed during his speech that our next generation NovaThor platform L8540 will be using 28nm FD-SOI technology.

                                                                                                                          FD-SOI is a technology that is available for design today and will allow existing designs in 28nm to benefit today already from significant improvements in performance and power. FD-SOI solves – with less process complexity – scaling, leakage and variability issues to further shrink CMOS technology beyond 28nm.

                                                                                                                          FD-SOI, like FinFET, is a technology that was initially planned for 20nm nodes and below to overcome traditional bulk CMOS scaling limitations such as high leakage and device variability. However, unlike FinFET, FD-SOI process remains a low-complexity planar process very similar to the traditional CMOS bulk. This allows for a faster process development and ramp-up and an easier design porting for existing designs. The strong collaboration between ST-Ericsson, STMicroelectronics, Leti and Soitec allows us to already benefit in 28nm from the added value of FD-SOI. The three key benefits realized are leading performance, competitive speed/leakage trade-offs, and optimized power efficiency. This post looks at the performance aspectsand a later post will look at the other two benefits.

                                                                                                                          Leading-edge performance across a wide voltage range

                                                                                                                          The graph below compares the maximum frequency achievable for a particular critical path of an ARM Cortex™-A9 CPU core implementation, versus the supply voltage Vdd, for a slow corner process (SS) and a worst case temperature.

                                                                                                                          Each curve represents a specific 28nm process offer.

                                                                                                                          • 28HP-LVT is a mobile high performance bulk CMOSprocess. Targeting high CPU performance mobile applications , these processes are derived from fast process flavors with very thin gate oxide and therefore have a limited Vdd overdrive capability (~1.0V) for reliability reasons
                                                                                                                          • 28LP-LVT is a low power bulk CMOSprocess. Traditionally used for low power mobile applications, LP processes are based on thicker transistor gate oxide supporting a higher voltage overdrive (up to 1.3V).
                                                                                                                          • 28FDSOI-LVT is the 28nm FD-SOI process developed by STMicroelectronics. FD-SOI uses a similar gate structure as 28LP, it can also sustain a 1.3V overdrive.

                                                                                                                          In all process, only low voltage threshold (LVT) transistors are considered. These are the one giving the highest speed performance.

                                                                                                                          Performance comparison of 28nm technologies

                                                                                                                          Performance comparison of 28nm technologies

                                                                                                                          1. First observation is that FD-SOI at nominal voltages (0.9V for HP, 1.0V for both LP and FD-SOI) gives similar peak performance to HP processes and more than 35% performance improvement compared to LP at same Vdd.
                                                                                                                          2. Furthermore, higher Vdd tolerance allows for an extra performance boost in FD-SOI that is not possible with HP processes, resulting in better overall peak performance
                                                                                                                          3. At low operating voltages such as Vdd=0.6V, the LP process is either not functional or gives low performance. FD-SOI is equivalent or better than the HP process – but with a much lower leakage and dynamic power consumptionas we will see in a later post.
                                                                                                                          4. Thanks to lower process variability than any bulk CMOS process, FD-SOI allows even lower operating voltages (down to 0.5V) at frequencies that are useful for non-CPU intensive processes (200MHz-300MHz) e.g. Hardware accelerated audio or video playback.

                                                                                                                          So, over a large Vdd range (from 0.5V up to 1.3V), FD-SOI comprehensively outperforms existing bulk CMOS processes dedicated to mobile applications. This extra performance gain can be used either to increase peak performance or to operate at a lower Vdd for the same performance, saving dynamic power.

                                                                                                                          More technical information: Planar fully depleted silicon technology to design competitive SOC at 28nm and beyond [STMicroelectronics FD-SOI whitepaper, Feb 23, 2012]

                                                                                                                          ABSTRACT
                                                                                                                          This document considers the challenges to obtain competitive silicon technology for the upcoming generation of System-On-Chip ICs. It suggests planar fully depleted technology deserves serious interest. After outlining some implementation choices, a number of circuit-level benchmark results as well as some important design aspects are presented. It is found that this technology combines high performance, power efficiency and cost-effectiveness, which makes it a very attractive candidate to serve the needs of mobile and consumer multimedia SOCs starting at the 28nm node and scalable down to 14nm.

                                                                                                                          6. Perspectives

                                                                                                                          6.1. 28nm

                                                                                                                          With the 28nm planar FD technology, on top of preparing the work for 20nm where the kind of power/performance tradeoff enabled by planar FD will be key, we are already able to demonstrate very attractive results. We expect to sign-off designs breaking the 2GHz barrier under worst-case conditions, in a power-efficient and cost-efficient way. For lower
                                                                                                                          performance targets, there is also the opportunity to design ultra-low-power chips that can fulfill their functional specifications using a very low Vdd, for example in the 0.6-0.8V range.

                                                                                                                          The Process Design Kit (PDK) is available, targeting the technology to be open for risk production by mid-2012.

                                                                                                                          6.2. 20nm

                                                                                                                          We intend to scale our planar FD technology to 20nm, introducing a number of improvements to continue pushing the performance and retain a low power consumption. The objective is to bring up a solution that will improve on what mobile-optimized planar bulk CMOS will achieve, and will be extremely competitive vs. potential FinFET-based approaches
                                                                                                                          for SOC – while keeping a simple and cost-efficient approach. The design rules will be compatible with 20nm bulk CMOS. This technology will bridge the gap to 14nm and provide an interesting alternative to the cost and complexity of introducing Extreme-UV and FinFET structures.

                                                                                                                          Evaluation SPICE models are available, and full PDK is scheduled by end of 2012, with risk production for 13Q3.

                                                                                                                          6.3. 14nm

                                                                                                                          Based on the assessments we have performed, we are confident that the planar FD technology is shrinkable to 14nm. Silicon and buried oxide thickness will need to be reduced to within limits that wafer manufacturers and CMOS process technology can handle.

                                                                                                                          7. CONCLUSION
                                                                                                                          The findings exposed in this document indicate planar FD is a promising technology for modern mobile and consumer multimedia chips. It combines high performance and low power consumption, complemented by an excellent responsiveness to power management design techniques. The fabrication process is comparatively simple and is a low-risk evolution from conventional planar bulk CMOS – and there is little disruption at design level, too.

                                                                                                                          At 28nm, we find that planar FD more than matches the peak performance of “G”-type technology, at the cost and complexity of a low-power type technology, with better power efficiency across use cases than any of the conventional bulk CMOS flavor.

                                                                                                                          Looking further, for 20nm and 14nm, we believe planar FD will be extremely competitive with respect to alternative approaches in terms of performance and power, while being both simpler and more suited to low-power design techniques. In short, a better choice for the type of SOC we offer.

                                                                                                                          Interview With ST-Ericsson’s Chief Chip Architect: SOCs on 28nm FD-SOI – When, Why and How [ASN #19 – FD-SOI INDUSTRIALIZATION (ST, ST-ERICSSON, SOITEC, LETI, UC BERKELEY), April 6, 2012]

                                                                                                                          ST-Ericsson’s Chief Chip Architect Louis Tannyeres talks with ASN about the move to 28nm FD-SOI for smartphones and tablet SOCs.

                                                                                                                          FD-SOI is a technology that is available for design today and will allow existing designs in 28nm to benefit today already from significant improvements in performance and power. FD-SOI solves – with less process complexity – scaling, leakage and variability issues to further shrink CMOS technology beyond 28nm.

                                                                                                                          True market disruptions are only understood after the fact. We believe FD-SOI is such a disruption and a truely differentiated solution. There is a real opportunity for a FD-SOI 28nm solution and then 20nm as a key technology differentiator.  Our customers have reacted  favorably to hearing that we will be enabling FD-SOI technology in our next generation of products. And since we are enabling this technology in STMicroelectronics’ foundries, we have also minimized our risk with respect to market adoption trends.

                                                                                                                          28nm planar FD manufacturing technology has a lot of commonalities with traditional 28nm Low-Power CMOS technology and STMicroelectronics’ strategy has been to reuse as much as possible the 28nm low-power bulk CMOS process. The Back-End part of the process is a direct copy of the 28nm bulk technology. The Front-End part of the process also relies in majority on a direct re-use of equivalent process modules from the bulk technology. Only a few steps have been optimized, added or removed. Overall, the Back-End is 100% identical to the traditional 28nm bulk low-power CMOS process, and the Front-End of Line (FEOL) has 80% in common with that same process.

                                                                                                                          FD-SOI will be introduced into next generation products from ST-Ericsson. At this time, our first 28nm FD-SOI products are scheduled to tape out in Q3 2012 with production start anticipated in 2013.

                                                                                                                          See also:
                                                                                                                          Important News Comes Out of Recent FD-SOI Workshop [Advanced Substrate News, April 20, 2012]
                                                                                                                          The End Of CMOS [SperlingMediaGroup YouTube channel, Dec 10, 2011]

                                                                                                                          Steve Longoria, senior vice president of Soitec, talks with System-Level Design (www sldcommunity com) about why silicon on insulator (SOI) has suddenly become essential to semiconductor manufacturing and what it will mean for Moore’s Law.

                                                                                                                          Soitec: Wafer Roadmap for Fully Depleted Planar and 3D/FinFET [Steve Longoria, Senior VP of Worldwide Business Development at Soitec on the Advanced Substrate News, April 20, 2012], the related Soitec press releases are: Soitec outlines fully depleted product roadmap for advanced planar and three-dimensional transistors [April 16, 2012] and Soitec provides affordable paths to higher performance, lower-power processors for mobile and consumer devices [April 16, 2012]
                                                                                                                          Considerations for Bulk CMOS to FD-SOI Design Porting – Key Excerpts [Advanced Substrate News, Dec 5, 2011]
                                                                                                                          Archive of 32nm SOI [Advanced Substrate News] for the state-of-the-art in the “classic” (i.e. partially depleted) SOI
                                                                                                                          ST: FD-SOI for Competitive SOCs at 28nm and Beyond [Thomas Skotnicki, Advanced Devices Program Director at STMicroelectronics on Advanced Substrate News, Nov 18, 2011]

                                                                                                                          In a mobile world, high-performance must go hand-in-hand with low-operation Vdd and low stand-by leakage. That requires different technologies. As we approach the 20/22nm node and beyond, traditional planar-bulk technologies cannot meet these requirements. The choice comes down to either a planar fully-depleted (FD) SOI solution or a FinFET solution. At STMicroelectronics, we call our flavor of planar FD-SOI UTBB, for ultra-thin body & box. As such, it leverages SOI wafers with both ultra-thin top silicon and ultra-thin buried oxide (BOX). Where more practical, we use a hybrid SOI/bulk configuration, wherein certain devices are placed in the bulk silicon that has been exposed by etching back the insulating BOX layer.

                                                                                                                          ST has been working on FD-SOI for over 10 years. We have research programs or partnerships on 3 sites: Crolles, Leti, and IBM Albany NanoTech. We have collaborated with Soitec for wafer supply.

                                                                                                                          The key technology elements for UTBB have been demonstrated.

                                                                                                                          The move from R&D to an industrial process of 28nm FD-SOI technology is for us (and for our partners) an efficient and straightforward response to the world-wide competition. The extension of FD-SOI towards the 20nm and 14nm nodes is also in preparation with new boosters to further increase the performance growth rate.

                                                                                                                          UTBB FD-SOI promises to give STMicroelectronics a significant edge in both the near term and for years to come.

                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          [39:25] For the 8540 platform we have two ideas. One is to take down the cost, and one is to boost the performance. … to boost the performance in terms of power and speed because we need to get differentiated. The key differentiating factors of this joint venture to me are two: ST and Ericsson. Ericsson is the #1 company in the world when it comes to network technology and ST because it is one of the top 6 semiconductor companies in the world. We absolutely need to exploit that in order to beat the competition. None of our competitors have these abilities. All of our competitors, not most of them, but all of them are standard companies exploiting the same process, coming from the same place, coming from the same vendor. How can you differentiate when you are doing that? We absolutely need to differentiate this time. Which is the capability we have, to exploit the strength of our shareholder. This is one.

                                                                                                                          We will bring to the market, and we will bring the demonstration before the end of the year an FD-SOI flavor, 8540 FD-SOI version that will demonstrate the following capability.

                                                                                                                          ST-Ericsson Differentiation with FD-SOI Technology -- 31-Jan-2012

                                                                                                                          Why do we want to use FD-SOI?

                                                                                                                          … FD-SOI means Fully Depleted Silicon On Insulator technology. This is a silicon technology which is unique. Silicon on insulator means you use silicon substrates which are actually composed of six substrates (that you will not see here) with a thin layer of oxide and on top of it a thin layer of silicon. What it does, it provides perfect isolation. … Normally with the classical processes from foundries you start only with six layers of silicon. In this case we will start the silicon process with this sandwich. These six layers of silicon, the oxide and then a very thin layer of silicon on top of it on which you are going to build your active element, the transistor.  These technologies are running for a while. IBM is using it in the server since very long time for performance reason.

                                                                                                                          [i.e. partially depleted SOI only: e.g. AMD Bulldozer on 32nm SOI, Microsoft Xbox 360 by IBM etc. for the latest. IBM launched SOI in Fishkill back in 1998. IBM, of course, has its own successful SOI foundry business, and owns the high-end gaming market, fabbing SOI-based chips for the big three: in addition to Microsoft Xbox Sony PS3 and Nintendo Wii (and the upcoming Wii U) as well. AMD followed with 130nm SOI out of Dresden in 2001. Singapore – which was first Chartered – started turning out 90nm SOI chips for IBM back in 2004, and adopted AMD’s highly touted Automation Precision Manufacturing (APM) in 2005. GlobalFoundries has been turning out 32nm SOI chips since June ’11 and at GlobalFoundries’ “Fab 8″ in upstate New York, based on IBM’s latest, 32nm SOI chip technology since January’12.]

                                                                                                                          This is known. It has not been used yet in the mobile space for one reason, cost and complexity of the technology.

                                                                                                                          Why can’t we use it today?

                                                                                                                          Because of those two letters: FD. FD means fully depleted. It means we have been able with our partner ST, and their partners, to come to such a thin layer of active silicon on top of the thin layer of oxide that it provides us two things:

                                                                                                                          1. Because of this layer is so thin you can much more easily isolate the transistor one from each other. The process is much simpler which removes the cost of SOI.
                                                                                                                          2. Because this layer is so thin the transistor you create is naturally pinched, closed. When you put the metal gates on top of the silicon the transistor is closed. No current is flowing between the two. What that means is that you don’t need to impose an electrical signal on the gates to close the transistor. So it means you save power. In a sleep mode zero consumption at all.

                                                                                                                          This is one of the first time in my life that I see that all ingredients as put together result only in benefits and not in penalty. Cost-wise we have about the same cost as the normal process. Process-wise simpler. Performance-wise this is what you get [see the above slide]. At 0.6V twice the performance. 35% less power dissipation. [on the same node]

                                                                                                                          And finally: why we want to use that?

                                                                                                                          Because the world needs to go fully depleted. … The target solution is extremely complex in terms of cost. It is not fitting for the mobile space. It is not fitting for devices that you want to sell below 10 or 20 dollars. Absolutely not. This solution is fittingWe are the only one to have this one thanks to FD technology and as soon as we ramp up the volume and will have a proprietary foundry [ST-Ericsson has a 300mm foundry which is just down the road from the special wafer – called FD-2D – supplier Soitec in Grenoble] to fullfill the volume requirements we are going to demonstrate that. We already have silicon on test vehicle. We are going to demonstrate that before the end of the year, on the base of the 8540 product. …

                                                                                                                          What does it give to a telco?

                                                                                                                          4 hours more high-speed browsing, 2.5 hours more HD video playback, 2 hours more HD video recording, and of course less power dissipation, longer battery etc. … We are the only one to have this technology today. We are at least 2 years before anybody else. And we can compete with the companies I told you before which have not yet demonstrated that 3D fully depleted technology that they want to put up the market, [put already] for PC and server market, [but] fitting the mobility market [an obvious reference to Intel]. … [46:10]

                                                                                                                          image
                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          … stabilization means stop bleeding …

                                                                                                                          So from the application processor point of view the company is abandoning the premium/high segment of the market which had been the kind of flagship for the future before, as well as the entry segment which had also been figuring quite high on their priority list during the second half of 2011:

                                                                                                                          Will ST-Ericsson’s New Product Programme Do The Trick? [July 28, 2011]

                                                                                                                          Currently ST-Ericsson is moving its product line onto 45nm and is sampling three 45nm products – its 8500 platform for smartphones, its 4500 platform which is the lower-end version of the 8500, and its CG2900Bluetooth/GPS/FM combo modem.

                                                                                                                          “We shipped the 8500 in pre-production quantities in Q2 and it will be ramping up at a number of customers this year,” Gerard Cronin, STE’s head of marketing, told me yesterday, “we have engagements on the 8500 with five out of the top ten handset manufacturers.”

                                                                                                                          Before the end of this year, ST-Ericsson intends to sample its first 32nm device, the A9540 application processor based on Cortex A-9 which is the upgrade of the 8500 with 50% higher speed.

                                                                                                                          Early in 2012 it intends to sample its first 28nm device – the A9600 based on the Cortex A-15.

                                                                                                                          Asked from which foundry ST-Ericsson hopes to get 28nm from, Cronin said ST-Ericsson is part of the Globalfoundries alliance.

                                                                                                                          However, according to Mike Bryant, CTO of Future Horizons, talking at IFS 2011 earlier this month, GloFo’s 28nm process in Dresden is running with almost zero yield.

                                                                                                                          ST Ericsson plants center in Silicon Valley [Sept 13, 2011]

                                                                                                                          ST Ericsson announced it has opened a small technical office in Silicon Valley as it scrambles to get ahead of the curve in the hyper competitive market for smartphone and tablet chips. It demoed its current HSPA+ products running Android here and talked about plans for LTE chips and support for Windows Phone software in the coming year.

                                                                                                                          At the launch, ST Ericsson demoed its U8500 integrated applications processor and HSPA+ baseband running on a new board geared for software developers. The chip supported stereo 3-D graphics, 1080-progressive video playback, games with motion sensors and a browser supporting augmented reality.

                                                                                                                          The processor uses a dual-core ARM Cortex A9 with Mali 400 graphics. In demos it supported Symbian and the Gingerbread and Honeycomb versions of Android.

                                                                                                                          The company does not have demo-ready versions of its next-generation discrete LTE baseband [the M7400] and application processor [the A9540] announced in February and slated for production in mid-2012. The schedule is behind that of rival Qualcomm which is expected to supply the first LTE handsets. However, the ST Ericsson chip will support eight LTE spectrum bands on a single RF transceiver.

                                                                                                                          ST Ericsson has taped out a dual-core ARM Cortex A-15 set to ship in 2012 [the A9600]. It will outgun rivals including the Omap 5 from Texas Instruments because the STE chip uses the Imagination Rogue graphics core, said Gilles Delfassy, chief executive of ST Ericsson and former head of TI’s wireless business unit. Due to use of a new vector-processing architecture, the chip should also have smaller size, cost and power consumption than its rivals, he added.

                                                                                                                          In software, ST Ericsson is playing catch up with the shift by Nokia, a lead customer, from Symbian to Windows Phone. It does not expect to support Nokia’s first Windows Phone 7 handsets, but it has put a team in place to support Windows Phone 8 on its chips.

                                                                                                                          “We have a road map which is very aggressive, but the key question is will we deliver on it on time,” Delfassy said.

                                                                                                                          International Data Corp. analyst Mario Morales said smartphone makers want alternatives to integrated chips from Qualcomm, and are waiting on ST Ericsson to execute on its road map.

                                                                                                                          To that end, Delfassy said he has replaced some engineers in ST Ericsson and brought on two executives with strength in product execution. One is a senior vice president from the former Infineon wireless group who worked closely with Apple; another is a former Sony Ericsson executive who has supervised groups of more than a thousand engineers.

                                                                                                                          ST Ericsson has also simplified its product portfolio, pruning five modem technologies down to just one [the Thor M7400 modem]. It was the first company to deliver a 21 Mbit/second HSPA+ modem [the Thor M5780 modem], Delfassy said.

                                                                                                                          So far ST Ericsson is not planning any quad-core products despite the fact rivals Nvidia and Qualcomm have announced plans for such parts. “We aim to be leaders in apps processors, but there is a big debate whether quad core is a case of diminishing returns,” Delfassy said.

                                                                                                                          More information on this past strategy is available in my post:
                                                                                                                          ST-Ericsson NovaThor SoCs for future Windows Phones from Nokia [Nov 3, 2011]

                                                                                                                          In fact what remains out of that is the following:

                                                                                                                          ST-Ericsson NovaThor U9500 (Nova A9500)
                                                                                                                          45nm
                                                                                                                          2 x ARM Cortex A9 @ 1.2GHz
                                                                                                                          ARM Mali-400 MP1
                                                                                                                          1 x 32-bit LPDDR2
                                                                                                                          Now
                                                                                                                          (Nova A9500 in production since Q3 2011)
                                                                                                                          ST-Ericsson NovaThor U8500
                                                                                                                          45nm
                                                                                                                          2 x ARM Cortex A9 @ 1.0GHz
                                                                                                                          ARM Mali-400 MP1
                                                                                                                          1 x 32-bit LPDDR2
                                                                                                                          Now (pre-production quantities in Q2  2011)

                                                                                                                          while the real changes were happening in the planned SoCs for the higher end of the market, and ST-Microelectronics is to take now the decision about the timing:

                                                                                                                          ST-Ericsson NovaThor LP9600 (Nova A9600)
                                                                                                                          28nm
                                                                                                                          2 x ARM Cortex-A15 @ 2.5GHz
                                                                                                                          IMG PowerVR Series 6 (Rogue)
                                                                                                                          Dual Memory
                                                                                                                          (Nova A9600:
                                                                                                                          2H
                                                                                                                          2012 [???])
                                                                                                                          ST-Ericsson NovaThor L9540 (Nova A9540)
                                                                                                                          32nm
                                                                                                                          2 x ARM Cortex A9 @ 1.85GHz
                                                                                                                          IMG PowerVR Series 5
                                                                                                                          2 x 32-bit LPDDR2
                                                                                                                          (Nova A9540:
                                                                                                                          1H 2012
                                                                                                                          [???])

                                                                                                                          ST-Ericson L9540 1.85Ghz ARM Cortex-A9 [Charbax YouTube channel, March 1, 2012]

                                                                                                                          ST-Ericsson demonstrates their new L9540 1.85Ghz ARM Cortex-A9 Dual-core processor with the SGX544 GPU. They show that it can be cranked at up to 2.2Ghz and it can also automatically be down-clocked to 400Mhz when not much CPU performance is needed when for example tasks like video-playback are offloaded to another part of the System on Chip.
                                                                                                                          Important note: With the last two application processors still on the company’s roadmap the product availabilities are unknown now, especially that of the flagship A9600 which should be repositioned (at least in time) in lieu of the announced change of moving away from the premium segment of the smartphone market as per the below announcement.

                                                                                                                          What the company announced on MWC 2012 instead is a new part, the Novathor L8540 AP+Modem integrated SoC on a single die with the following specification:

                                                                                                                          NOVATHOR™ L8540 [ST-Ericsson, excerpted on March 12, 2012]

                                                                                                                          The NovaThor™ L8540 builds on the NovaThor L9540 to combine a state of the art application processor with an LTE/HSPA+/TD-SCDMA multimode modem in a single die. The platform incorporates a dual-core CPU with a powerful graphics engine, an LTE multimode modem and a full suite of connectivity in a high-performance, low-power and size and cost-optimized solution. With a small footprint, very low bill of materials and support for up to eight bands in a flexible radio solution the NovaThor L8540 further enables widespread global adoption of LTE multimode smartphones.
                                                                                                                          FEATURES
                                                                                                                          • Full HD 1080p camcorder, multiple codecs supported (H264 HP, VC-1, MPEG-4)
                                                                                                                          • 3D HD video capture and display
                                                                                                                          • High-resolution, touchscreen display support up to WUXGA
                                                                                                                          • Simultaneous dual display support up to dual qHD
                                                                                                                          • High-performance 3D graphics
                                                                                                                          • Dual camera support up to 20 Mpixel and 5 Mpixel
                                                                                                                          • Wi-Fi, Bluetooth, GNSS (GPS+GLONASS), FM and NFC enabled platform
                                                                                                                          • Built-in USB 2.0, HDMI out
                                                                                                                          • Support for major operating systems
                                                                                                                          • Optional support for mobile TV standards
                                                                                                                          TELECOM
                                                                                                                          • LTE FDD/TDD, HSPA+, TD-SCDMA, EDGE
                                                                                                                          • Radio supporting up to 8 LTE/WCDMA/GSM bands.
                                                                                                                          • Power efficient architecture
                                                                                                                          • Highly integrated radio solution
                                                                                                                          TECHNOLOGY
                                                                                                                          • Highly efficient, low-power ARM® dual Cortex™- A9 processor clocked at up to 1.85Ghz
                                                                                                                          • Dual multimedia DSP for low-power, flexible media processing
                                                                                                                          • High-bandwidth Dual LP-DDR2 interface
                                                                                                                          • Imagination Technologies’ POWERVR™ SGX544 GPU
                                                                                                                          • Unique audio architecture with a wide range of audio codecs supported
                                                                                                                          • Advanced power saving architecture enabling class-leading audio and video playback time
                                                                                                                          BLOCK DIAGRAM

                                                                                                                          image

                                                                                                                          Such an announcement when nothing has been announced regarding the product availability of the NovaThor L9540 two-chip SoC solution (announced a year ago) while already a single die solution based on that, the NovaThor L8540 has been announced, is quite remarkable.

                                                                                                                          Let’s take first a look at the announcement text for some clues explaining that:

                                                                                                                          ST-ERICSSON ANNOUNCES NEW HIGHLY INTEGRATED LTE NOVATHOR PLATFORM [ST-Ericsson press release, Feb 28, 2012]

                                                                                                                          NovaThor L8540 integrates Thor LTE technology with powerful dual-core application processor to deliver extraordinary multimedia performance
                                                                                                                          Barcelona, February 28, 2012 – ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today the latest addition to its integrated smartphone and tablet platform portfolio. The NovaThor™ L8540 is an LTE/HSPA+/TD-HSPA-enabled integrated smartphone platform with the powerful application processor and modem integrated on a single die.
                                                                                                                          “By adding the new NovaThor L8540 platform to our portfolio of highly integrated smartphone and tablet solutions, the L8540 takes integration of LTE platforms to the next level,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “By integrating the powerful dual-core application processor with our industry-leading LTE multimode modem we bring further size, bill of materials and power consumption savings to our customers. Consumers of next generation smartphones powered by the NovaThor L8540 will benefit from compact, power efficient devices that deliver an amazing multimedia experience.”
                                                                                                                          The NovaThor L8540 integrates a dual-core 1.85GHz ARM Cortex-A9 processor, a powerful Imagination PowerVR™ SGX544 GPU running at 500Mhz and an LTE/HSPA+/TD-HSPA modem on a single 28nm die. Thanks to its ultra-low voltage operating mode the NovaThor L8540 extends battery life for typical smartphone usage by up to 30% compared to platforms in the market today.
                                                                                                                          The NovaThor L8540 will provide extraordinary multimedia performance in an integrated solution, supporting 1080p video encoding and playback at up to 60 frames per second, 1080p 3D camcorder functionality, support for displays up to WUXGA (1920×1200) at 60 frames per second and support for cameras up to 20 megapixels.
                                                                                                                          The complete platform includes pre-integrated connectivity with support for Bluetooth, GNSS (GPS+ GLONASS), FM, WLAN, WiFi Direct and NFC. With the recently released ST-Ericsson connectivity solutions, CG2905 and CW1250, the platform comes optimized for wireless radio co-existence and low power consumption.
                                                                                                                          With support for up to eight LTE/HSPA/TD-SCDMA/GSM bands in a flexible and compact radio solution, the NovaThor L8540 addresses the need for a cost effective solution for widespread global adoption of LTE multimode smartphones.
                                                                                                                          The NovaThor L9540 is being demonstrated by ST-Ericsson at Mobile World Congress in Barcelona. The NovaThor L8540 is scheduled to sample to customers in Q3 2012.
                                                                                                                          Note to Editors
                                                                                                                          The NovaThor family combines advanced application processing, a high speed mobile broadband modem and a full connectivity suite in a complete platform. The NovaThor L8540 builds on the NovaThor L9540 platform, which combines the Nova™ A9540 application processor and the Thor™ M7400 LTE multimode modem, and which has been sampling to lead customers since Q4 2011. The Nova A9540 is ST-Ericsson’s second generation application processor following the Nova A9500 which is in production since Q3 2011.
                                                                                                                          With an extremely high level of software and hardware compatibilitybetween the generations, our customers will be able to quickly bring NovaThor L9540 and L8540-based devices to market.

                                                                                                                          That is by the new focused portfolio approach ST-Ericsson so far has declared a fairly strong direction of aiming at the mainstream market of 2013-2014 by providing the most cost-effective, fully integrated and single die solution on the market. Moreover, due to “extremely high level of software and hardware compatibilitybetween … NovaThor L9540 and L8540” the leading smartphone vendors with a long-term view of the market could already launch their respective strategic products in 2012.

                                                                                                                          So, what to expect in a month or so, and from which vendors?

                                                                                                                          ST-Ericsson readies revamp, soon a takeover target (Reuters, March 14, 2012)

                                                                                                                          ST-Ericsson is preparing to unveil a major operations revamp within two weeks, placing the troubled mobile chip venture on track for a takeover by a peer or competitor that would create a formidable rival to Qualcomm Inc.

                                                                                                                          ST-Ericsson, a 50-50 joint venture of Sweden’s Ericsson and France’s STMicroelectronics, is seen as a “strategic asset” for potential buyers. Those could include Advanced Micro Devices Inc, Nvidia Corp, Intel Corp and Texas Instruments Inc, three sources familiar with the situation told Reuters.

                                                                                                                          “It is the only answer to Qualcomm,” one of the sources said. “On the patent side, they are the one company that you go, ‘That makes sense.'”

                                                                                                                          Potential suitors will likely drag out their courtship over a year or two, waiting for ST-Ericsson to first show signs of a turnaround under new Chief Executive Didier Lamouche, a restructuring expert hired late last year.

                                                                                                                          Lamouche is due to unveil by the end of March a restructuring planthat is set to include site closures around the world and major layoffs to lower costs. The new strategy could also include seeking a partner for application processors.

                                                                                                                          ST-Ericsson NovaThor chipsets offer one of the few integrated alternatives to Qualcomm’s market-leading Snapdragon.

                                                                                                                          “The holy grail is to sell an integrated modem with an application processor into mainstream smartphones,” said analyst John Jackson from research firm CCS Insight.

                                                                                                                          The current structure of ST-Ericsson would pose several challenges for a potential buyer, the sources said. For example, the business is tightly linked to STMicro’s products, particularly for its upcoming “FD-SOI” technology, which analysts expect to be a game-changer at the market’s top end.

                                                                                                                          The technology, which brings significant power savings, has been seen as too expensive for phones, but last month ST-Ericsson promised to deliver FD-SOI chipsets — using STMicro technology in partnership with Soitec SA — for manufacturing clients to try out in smartphones this year.

                                                                                                                          And Ericsson holds most of the venture’s telecom patents and would be a tough deal negotiator, one of the sources said.

                                                                                                                          When Ericsson exited from a similar 50-50 cellphone venture, Sony Ericsson, the deal gave Sony Corp access to Ericsson patents; but only a few patents were sold to Sony as part of the deal. Also, loss-making Sony Ericsson was valued at roughly $3 billion in the deal. It had 2011 sales of $5.2 billion.

                                                                                                                          ST-Ericsson has lost a total of $2 billion in its three years of operation as revenues from key clients Nokia and Sony Ericsson shrank over 70 percent during the same period.

                                                                                                                          … Revenues in 2011 dropped to just $1.65 billion from pro forma level of $3.6 billion in 2008. …

                                                                                                                          One of the online marketing flagships of the leading global business media conglomerate UBM plc, EE Times responded to the Reuters report by a quite different view which – due to the specific business community nature of UBM segments, particularly that of the Online Marketing Servicesmight reflect a better understanding of what is going on behind the scene(note that EE Times received the 2010 Folio Eddie Award for Best website in B2B Energy/Utilities/Engineering):

                                                                                                                          Update: Why ST should sell ST-Ericsson to China [by Peter Clark on EE Times, March 15, 2012]

                                                                                                                          Europe’s largest chip company STMicroelectronics NV should persuade Ericsson AB that they sell off their mobile chip joint venture ST-Ericsson, but probably to some aspiring Chinese company. That is likely to produce the quickest and most profitable – or least loss-making – exit for the two parent companies from what has become a failed project.

                                                                                                                          A spokesperson for ST-Ericsson said the company has no comment on the Reuters report but added that STMicroelectronics and Ericsson remain committed to the joint venture and that it is a fundamental part of ST’s digital convergence strategy. It is interesting to note that ST-Ericsson is almost exactly three years old and that it may be Ericsson that wants to disengage from the joint venture and had expected ST to buy out its 50 percent.

                                                                                                                          I don’t think ST-Ericsson or ST have that much more time. In a note in the most recent financial results ST-Ericsson said “Our shareholders will continue to support funding our transitional financial needs.” This of course begs the question of “transition to what?” and “how long will that transition take?” The fact is that ST-Ericsson is a three-year old joint venture that has acted like a boat-anchor on the progress of STMicroelectronics.

                                                                                                                          It is true that ST-Ericsson wrapped up a lot of the previous problems of ST, specifically an overdependence on faltering Nokia as a customer, but pushing the problem into a joint-venture along with other European wireless chip business units belonging to NXP and Ericsson, was clearly not the solution.

                                                                                                                          ST compared with Infineon

                                                                                                                          Compare ST’s plight with that of Infineon, which got out of communications through the spin-off of its wired chips into Lantiq Deutschland GmbH and the sale of its wireless business unit to Intel. In the later part of the last decade Infineon’s CEO Peter Bauer decided to focus on some of the less glamorous but higher margin parts of the chip industry: power, automotive, industrial and security. How smart does that look now?

                                                                                                                          NXP has a similarly focused strategy with CEO Rick Clemmer taking the company out of a number of consumer markets and now pursuing similar markets to Infineon with high-performance mixed-signal ICs. NXP of course got out of mobile wireless by selling its business to create the joint venture.

                                                                                                                          While it is possible that a western company might want to acquire ST-Ericsson and access to patents I think greater interest might come from further east. I don’t think Texas Instruments wants to get back into the world of razor-thin margins in smartphones and the while the likes of AMD or Intel may have the appetite but are they going to sit on the sidelines too long waiting for the cuts have their effect.

                                                                                                                          Nvidia Corp. defnitely want to compete in this area but it has its own line of ARM-based Tegra application processors and is pursuing a modem strategy based on its purchase of Icera Inc. (Bristol England) for nearly $400 million in May 2011. Surely any deal for ST-Ericsson would undermine the value of what Nvidia has already paid.

                                                                                                                          Apple compared with China

                                                                                                                          The other question to ask is who has the means to make something of ST-Ericsson. I think that some companies from greater China do and perhaps Apple, which has been going through a process of re-integration to give itself the ability to develop and own chips during the roll out of its mobile device strategy.

                                                                                                                          Apple does not need all the baggage that would come with ST-Ericsson, or the ability to address multiple customers. Which is why a sale to a company such as HiSiliconTechnologies Co. Ltd. (Shenzhen, China) backed by Huawei Technologies Co. Ltd. (Shenzhen, China) might extract the highest value in the shortest time for ST and Ericsson.

                                                                                                                          Other Chinese companies that might have an interest in ST-Ericsson could include Rockchip, Xincomm, Leadcore Technology, Nufront and Spreadtrum. Of these HiSilicon with its links with Huawei and Leadcore, aligned with Datang, would appear more likely. In Taiwan MediatekInc. (Hsinchu, Taiwan) is also a likely candidate.

                                                                                                                          However, the geopolitical nature of any such sale of ST-Ericsson should not be underestimated. It would be a loss of face for Europe and for the west and behind the scenes moves may be made to try and keep control of the technology and jobs in the west. But what can Europe do? It is a continent of many bankrupt nations and few successful ones.The 27-nation European Union could try to lean on the likes of Apple and Intel to have them step in and save ST-Ericsson. Apple and Intel want to be good European citizens because of the size of the consumer market the European Union represents.

                                                                                                                          Of course, such is the power of Apple in the mobile device market these days that one design win with Apple could make many of ST-Ericsson’s problems go away – at least until they are designed out again.

                                                                                                                          Regarding the other parent’s position, i.e. that of the STMicroelectronics we have the following which is quite contradicting to both of Reuter’s and EE Times’ positions:

                                                                                                                          STMicroelectronics’ Management Presents at UBS European Technology Conference (Presentation Transcript) [Seeking Alpha, March 13, 2012]

                                                                                                                          STMicroelectronics NV (STM) UBS European Technology Conference Call March 8, 2012 3:45 AM ET

                                                                                                                          Philippe Lambinet
                                                                                                                          [Corporate Strategy Officer, Executive Vice President and General Manager of STMicroelectronics’ Digital Sector since January 2012; from February 2012 also responsible for Investor Relations and External Communications. Before that General Manager of the Home Entertainment & Displays Group for 5 years]

                                                                                                                          The other side of the company, in the area of Multimedia Convergence, clearly the focus is going to be on turning around the ST-Ericsson business and of course it is very important for us to maintain our leadership in the area of digital consumer applications.

                                                                                                                          … [elaboration of the ST-Ericsson’s performance over the last three years in financial terms] … So you see a $1.7 billion improvement over three years, so those three years actually included two crises, so not so bad performance considering how difficult 2009 was in our industry and how difficult the second half of 2011 was. So we are not unhappy of this situation and this is despite the cash consumption of the joint venture, ST-Ericsson joint venture which has been consuming quite a lot of cash as you all know.

                                                                                                                          During 2012 I think the top three priorities are fixing ST-Ericsson, fixing ST-Ericsson and fixing ST-Ericsson. This is really top on our agenda and this will be the plan [for STMicroelectronics itself !]. The plan will be published by ST-Ericsson as you will know imminently. ST-E’s CEO, Didier Lamouche in Barcelona committed to deliver a plan to get back to sustainable profitability around the end of March, beginning of April. So it’s coming in few days now.

                                                                                                                          STMicroelectronics’ Management Presents at UBS European Technology Conference (Question-and-Answer Session Transcript) [Seeking Alpha, March 13, 2012]

                                                                                                                          Unidentified Analyst

                                                                                                                          Thanks a lot. You mentioned the restructuring of your operations into one digital unit this year and you also mentioned how less famous Set Top Box business, you are seeing new entrants like Qualcomm and you also said your top priority is ST-Ericsson, ST-Ericsson, ST-Ericsson. Can you help us understand the possible synergies between ST-Ericsson and your digital business? Thanks,

                                                                                                                          Philippe Lambinet

                                                                                                                          Okay. I will do it conceptuality. This is in no way to be understood as an announcement or anything like that. But conceptually the world is moving to, and this is a message, I remember passing in every year in Las Vegas consumer electronic show. I do a speech about the trends in consumer electronics and already three years ago, I was talking about the evolution of the set top box moving to more and more open systems, internet open systems. So moving from proprietary operating system, like the CDI or NDS or open TV or like (inaudible), you know, proprietary operating systems, in to more open operating systems, such as Android and this is a fundamental trend.

                                                                                                                          Now as this happens, in set-top box, as this happens in TV, some TV manufacturers in China, 100% of their connected TVs are developed based on Android today. It’s not 10%. It’s 100%. Some of the major TV makers in China are basing all their connected TV strategy on Android. So, we’re talking about pretty heavy change here and as these things happen and you know, the story of Android and smartphone. Isn’t that pretty obvious that there are things that we should share more and things we could do together more. I think it’s very obvious.

                                                                                                                          So first, we do it in ST because you know, we see set-top box TV, car navigation and so we’re moving to very similar platforms, very, very similar. And I think, the obvious concept is that at some point, to be defined, there would be synergies exploited between what we’re doing in ST what we’re doing in ST-Ericsson. They are already by the way quite logical, which is not seeing because the products are different but you know, it’s pretty obvious, that’s a trend, which we will continue over the next years and that makes a lot of sense also for our customers and that makes a lot of sense for the ecosystem and because you know people — we have seen for example the set-top box business and the TV business of some of our customers being merge into one. That has happened to Samsung, now it’s under one organization, which used to be under two or three or four organization, now it’s the same boss has the TV and set-top boxes businesses in Samsung. And we see it across the market.

                                                                                                                          So as our customers are doing it, you know we have no choice, but to do it as well so that’s what these all new organization meansand by the way, we also see some of our more traditional ASIC business for example which we’re doing for communication infrastructure, at the end of the day ASIC used to be, just give a few cells to customers and they do the design themselves; now the kind of cell you have to provide is a full as part of the system here, with the dual 8 or 9 with the 3D graphics with the video processing and that’s the base for various it design.

                                                                                                                          So the world of ASIC is also changing; it is also aligning towards this kind of application process and platform, so that’s also why our ASIC business has been included inside the digital sectorbecause that’s side of the business also.

                                                                                                                          Now when I mention Qualcomm entering the TV business, I didn’t mention them entering the set-top business, so I just want to back on your point. The set-top box business has certain characteristics in terms of fragmentation, in terms of security which are very particular and not everybody can enter that market and you know that’s one area of difficulty for the Taiwanese, but also for some of our American competitors like Marvell or Qualcomm who would love to enter set-top box. Broadcom and us have some particular security technologies which are extremely tough to master and which are very important for content protection and are essential.

                                                                                                                          Now we believe by the way, security technologies will become important in many other businesses which content protection is very important. So actually that’s why I went very fast in some of my slides, but clearly data protection, security is an area for ST of traditional strength and we intend to leverage that strength in many other businesses. It’s very clear that the hackers, terrorists and industrial spies are driving a need for higher security levels in every system that’s true for a TV and set-top box, but that’s also true for a smartphone, for a router and for any devices. So it’s very important for us to use that competitive advantage in many marketsand again here we are in advance compared to many of our competitors.

                                                                                                                          From that I will conclude that neither Ericsson (as per their spokesman response to EE Times) nor ST (as per their EVP and CSO views presented above) will sell its investment in ST-Ericsson. For me the much more logical likelihood is that large industrial investors will join the joint venture thus providing the needed additional capital.

                                                                                                                          Anyway when the new CEO will deliver the new restructuring plan by the end of March we will probably know everything about the new investors from the semiconductor sector who will back that plan. The crucial question now is the customer support, i.e. which smartphone vendors in what way could back the restructuring plan by their NovaThor platform commitments. Here are certain clues:

                                                                                                                          NOKIA SELECTS ST-ERICSSON AS SUPPLIER FOR FUTURE WINDOWS PHONE DEVICES [ST-Ericsson press release, Nov 2, 2011]

                                                                                                                          NovaThor™ platform to enable Nokia to extend Windows Phone devices to new price points and geographies

                                                                                                                          Geneva, Switzerland, November 2, 2011 – Nokia has selected ST-Ericsson as a supplier for future devices it plans to introduce based on the Windows Phone mobile platform.

                                                                                                                          “We are pleased to have been selected by Nokia as a key partner for Windows smartphones, in line with our goal to be present in all segments and major operating systems,” said Gilles Delfassy, president and CEO of ST-Ericsson. “Our NovaThor platforms continue to gain traction as they enable customers to bring great smartphones to the market.”

                                                                                                                          which goes back to a year earlier agreement as well:
                                                                                                                          ST-ERICSSON AND NOKIA JOIN FORCES TO DRIVE TD-LTE IN CHINA [Nov 10, 2010]

                                                                                                                          ST-Ericsson, a world leader in wireless platforms and semiconductors, and Nokia, the world’s leading provider of mobile devices and solutions are developing pioneering TD-LTE demonstration devices for China Mobile.

                                                                                                                          At the Shanghai Expo, Nokia and ST-Ericsson demonstrated video streaming and other multimedia services on a TD-LTE Nokia Booklet containing ST-Ericsson’s M700 TD-LTE modem. ST-Ericsson’s LTE modems, which can download data at speeds of up to 100 Mbps, enable mobile subscribers to enjoy high-definition video streaming, video conferencing, online gaming, rapid file transfers and other demanding multimedia services.

                                                                                                                          China Mobile is trialing TD-LTE. Globally the technology is referred to as LTE TDD, which has a wide interest from operators around the world.

                                                                                                                          “Although LTE is still in its infancy, this sophisticated technology has the potential to bring a raft of compelling high-speed multimedia services to hundreds of millions of consumers all over the world,” said Heikki Koivu, Vice President, TD-SCDMA Business Team, Nokia. “Our co-operation with ST-Ericsson will enable us to demonstrate LTE capable devices and experiences as TD-LTE is developing towards commercial maturity”

                                                                                                                          “After driving development of both LTE and TD-based mobile technology for several years we are now ready to supply market-leading TD-LTE solutions,” said Pascal Langlois, Senior Vice President, Chief Sales and Marketing Officer of ST-Ericsson. “Our co-operation with Nokia, the world’s number one mobile phone supplier, will strengthen our ability to support mobile operators deploying LTE.”

                                                                                                                          Notes to Editors
                                                                                                                          Nokia and ST-Ericsson announced a partnership in late 2009 in the TD-SCDMA market
                                                                                                                          , which has since resulted in the launch of several devices in China.

                                                                                                                          From all that Nokia is clearly one of those absolutely committed vendors to the NovaThor platform! (And please note as well that the new CEO starting the Nokia restructuring was already at the helm during that announcement!)

                                                                                                                          Stephen Elop: Nokia Lumia coming to China on March 28th [engadget, March 12, 2012]

                                                                                                                          China recently greeted its first Windows Phone (on pre-order, anyway), but if Stephen Elop has his way, Nokia will be hot on HTC’s heels. The company’s CEO has revealed that Nokia will unleash its Lumia handsets upon the People’s Republic on March 28th. While Elop offered no clues to suggest which models will be available, recent regulatory approvals hint that the Lumia 800 and 710 are both top candidates — though personally, we’d be shocked if the Lumia 610 didn’t rear its head sooner rather than later. Both China Telecom and China Unicom are said to be partners with Nokia, which is undoubtedly eager to offer something other than Symbianto its Chinese fan base.

                                                                                                                          Engadget Chinese (translated), Tech in Asia

                                                                                                                          source21st Century Business (translated)

                                                                                                                          China Mobile to Launch TD-SCDMA Windows Phone [Marbridge Daily, March 9, 2012]

                                                                                                                          Pan Zhiyong, general manager of China Mobile’s (NYSE: CHL; 0941.HK) Guangzhou branch, disclosed in a recent interview that China Mobile will soon release a TD-SCDMA Windows Phone. As to the question of whether the phone will be a Nokia Lumia series or an HTC brand Windows phone, Pan would not provide further comment.

                                                                                                                          China market: Nokia to launch Windows Phone 7.5 smartphones [DigiTimes, March 16, 2012]

                                                                                                                          Nokia will launch Windows Phone 7.5 (Tango) Lumia series smartphones in the China market on March 28 through cooperation with China Unicom, China Telecom and China Mobile. WCDMA, CDMA and TD-SCDMA versions will all be available matching the specifications of each carrier’s network, according to industry sources.

                                                                                                                          Windows Phone “Tango” officially launches in China on March 21 [liveside.net, March 14, 2012]

                                                                                                                          Microsoft China has recently sent out invitations to media outlets for their Windows Phone 7.5 launch event. This will mark the official entrance of Microsoft’s Windows Phone operating system into the mainland Chinese market. The event is set to be held in Beijing on March 21st, check out the invitation below:

                                                                                                                          While the launch event is set to be in a week’s time, HTC had went ahead to become the first OEM to launch the HTC TITAN(called HTC Triumph in China) in the Chinese market. The device was released yesterday, March 14th, and is said to come pre-loaded with Windows Phone “Tango”.

                                                                                                                          Following the launch event, Nokia’s CEO and President Stephen Elop is also set to hold an official launch event on March 28. Elop had announced that Nokia will be launching their Lumia range of devices for the mainland Chinese market during the event. Nokia is expected to launch 3 Lumia devices during the event, however the exact devices are still currently unknown. Rumors have been floating around that Nokia will be launching the Lumia 610S, Lumia 719C, and the Lumia 800C with China Telecom, and the devices are expected to be able to run on the carrier’s CDMA2000 network. As at Q4 2011, Nokia owns 16.1% of the Chinese mobile phone market, placing them second just behind Samsung.

                                                                                                                          Microsoft opened app submissions to Chinese developers back in October 2011, and has recently put up the mainland Chinese version of the Windows Phone marketplace website. However the marketplace itself has not yet opened to Chinese customers on their Windows Phone devices. It is expected that the marketplace will open soon after the launch.

                                                                                                                          Other vendors with ST-Ericsson NovaThor platform:

                                                                                                                          ST-Ericsson U8500, now in a range of Smartphones on the market [Charbax blog, March 6, 2012]

                                                                                                                          ST-Ericsson demonstrates the range of some of the devices announced that use the ST-Ericsson NovaThor U8500 that includes ST-Ericsson HSPA+ connectivity. They also announced the U8520 and the U9540 L8540 LTE platforms. [The U8520 is a lower power, higher frequency and lower BOM cost version of the U8500. As such it is the life extender for the U8500. The frequency and the node on which it will be produced (instead of the 45nm of U8500) are not yet announced. U8520 is sampling now and will be in production in H2 2012.]

                                                                                                                          http://www.stericsson.com/press/STER-027ChinesePressBackgrounder_English_2011.pdf
                                                                                                                          [2010. okt. 25. or 2011. febr. 7.]

                                                                                                                          … By combining ST-Ericsson Nova™ A9500 dual core application processor with the ST-Ericsson Thor™ M6718 TD-HSPA thin modem, ST-Ericsson customers in China can develop an advanced smartphone compatible with China Mobile’s 3G network, enabling consumers to enjoy immersive 3D graphics, fast web browsing, high-definition multimedia as well as other innovative and advanced applications with exceptional performance and battery life. …

                                                                                                                          POWERFUL NEW ST-ERICSSON PLATFORM MAKES DEBUT IN HTC SENSATION Z710T [ST-Ericsson press release, Sept 26, 2011]

                                                                                                                          China Mobile’s latest TD smartphone based on state-of-the-art NovaThor™ platform

                                                                                                                          China Mobile and HTC have launched the first smartphone to be based on ST-Ericsson’s powerful new NovaThor platform. The Sensation Z710t offers consumers immersive 3D graphics, fast web browsing, high-definition multimedia and the ability to run several advanced Androidapplications simultaneously with exceptional performance and battery life.

                                                                                                                          Underneath the hood of the HTC Sensation Z710t are ST-Ericsson’s Nova™ A9500 dual-core application processor, running at 1GHz, and ST-Ericsson’s Thor™ M6718modem, which can connect to China Mobile’s extensive TD-SCDMA network, enabling consumers to get online at broadband speeds across much of China. The HTC Sensation Z710t also sports an eight megapixel camera and a 4.3 inch display.

                                                                                                                          “ST-Ericsson’s new NovaThor platform has enabled us to develop a world-class Android smartphone for China Mobile’s TD network,” said Matthew Costello, Chief Operating Officer of HTC. “Consumers are going to be captivated by the fast and responsive multimedia experience delivered by the HTC Sensation Z710t.”

                                                                                                                          “The launch of this exceptional HTC smartphone highlights both the capabilities of our NovaThor platform family and our wholehearted support for China Mobile’s drive to bring world-leading smartphones onto its TD network,” said Pascal Langlois, senior vice president, chief sales and marketing officer of ST-Ericsson. “Consumers and Android application developers alike will relish the raw power and 3D graphical capabilities of the HTC Sensation Z710t.”

                                                                                                                          Notes to editors
                                                                                                                          ST-Ericsson
                                                                                                                          has been developing platforms for the Chinese 3G technology TD-SCDMA since 2003.

                                                                                                                          ST-Ericsson NovaThor smartphone platforms combine dual-core application processors with high-speed modems.

                                                                                                                          ST-Ericsson Current Thor and NovaThor adaptations -- 31-Jan-2012
                                                                                                                          Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                          ST-ERICSSON THOR M5780 HSPA+ MODEM POWERS NEW PANASONIC SMARTPHONE [ST-Ericsson press release, Feb 28, 2012]

                                                                                                                          ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today that Panasonic selected the power-efficient Thor™ M5780 thin modem for their newest ultra slim smartphone.

                                                                                                                          The ST-Ericsson Thor M5780 is a very compact smartphone-optimized modem configuration which inherits the proven HSPA+ modem technology from its predecessors. The small modem size helped Panasonic deliver an ultra slim smartphone equipped with a 4.3-inch screen.

                                                                                                                          “The Thor M5780 represents a further improvement of 21Mbps thin modems for smartphones in terms of size, thermal performance and cost structure which is why we believe Panasonic selected our modem to power their newest smartphone,” said Staffan Iveberg, senior vice president, thin modem solutions division for ST-Ericsson. “The success of innovation has led to a 35% size reduction of M5780 compared to our first generation HSPA+ modem. The modem is capable of delivering 21Mbps downstream and 5.76Mbps upstream simultaneously and needs no separate flash memory. With all of these features, Panasonic had everything they needed to make a great high speed broadband-enabled smartphone.”

                                                                                                                          ST-Ericsson announces that Panasonic smartphone will be first to use Thor M5780 HSPA+ modem [by Magnus Karlberg on ST-Ericsson blog, Feb 29, 2012]

                                                                                                                          ST-Ericsson was a pioneer with its Thor™ modems on the HSPA+ 21 market. I’m very pleased to see that the market has taken off quickly and that many networks support this high speed mobile broadband.

                                                                                                                          Of course we haven’t stopped our development on our HSPA+ portfolio since the early days, the success of innovation has led to even smaller and more power efficient modems. Today, I can share the exciting news that we power a new Panasonic smartphone device for this market with our latest HSPA+ 21Mbps modemthe M5780.

                                                                                                                          The Thor M5780 represents a further improvement of 21Mbps thin modems for smartphones in terms of size, thermal performance and cost structure which is why we believe Panasonic selected our modem to power their newest smartphone. The Thor M5780 is actually 35% smaller compared to our first generation HSPA+ modem.

                                                                                                                          I really like the design of the new Panasonic device, it’s an ultraslim smartphone with 4’3 screen powered with excellent mobile broadband capabilities!

                                                                                                                          Related to the current HSPA+ only single die U8500 NovaThor platform:

                                                                                                                          “Our high-speed Thor™ modem revenue grew more than 20 percent sequentially as new HSPA+ phones continued to ramp in the market. Also in the quarter [i.e. in Q2 CY2011] we … conducted field trials on our NovaThor™ U8500 platform with several customers. We are very pleased with our increasing progress on the NovaThor U8500, although initial volumes will be somewhat lower due to reduced demand at certain customers.
                                                                                                                          From: ST-ERICSSON REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS [July 20, 2011]

                                                                                                                          NOVATHOR U8500 [ST-Ericsson, excerpted on March 12, 2012]

                                                                                                                          The best smartphone platform
                                                                                                                          The NovaThor™ U8500 is the first integrated smartphone platform to offer the latest SMP (Symmetric Multi-Processing) dual core technology in a high-performance, low-power and cost-optimized solution for multiple operating systems. The U8500 is the first mobile platform with full High-Definition 1080p progressive-scan camcorder capabilities. With its combination of a dual-core SMP processor and a high-end 3D graphics accelerator, the U8500 enables a full web-browsing experience for next-generation smartphones.
                                                                                                                          FEATURES
                                                                                                                          • Full HD 1080p camcorder, multiple codecs supported (H264 HP, VC-1, MPEG-4)
                                                                                                                          • High-resolution, touchscreen display support up to WXGA
                                                                                                                          • Simultaneous dual display support up to dual XGA
                                                                                                                          • High performance 3D graphics
                                                                                                                          • Dual camera support with Integrated ISP 20 Mpixel and 5 Mpixel
                                                                                                                          • Wi-Fi, Bluetooth, GPS and FM enabled platform
                                                                                                                          • Built-in USB 2.0, HDMI out
                                                                                                                          • Support for multiple operating systems
                                                                                                                          • Optional support for mobile TV standards

                                                                                                                          TECHNOLOGY
                                                                                                                          • Highly efficient, low-power ARM dual Cortex™- A9 processor
                                                                                                                          • Dual multimedia DSP for low-power, flexible media processing
                                                                                                                          • High-bandwidth LP-DDR2 interface
                                                                                                                          • ARM® Mali™ 400 GPU and NEON®CPU extensions
                                                                                                                          • State-of-the-art HSPA (High-Speed Packet Access) Release 7 [HSPA+] modem
                                                                                                                          • Unique audio architecture with a wide range of audio codecs supported
                                                                                                                          • Advanced power saving architecture enabling class-leading audio and video playback times

                                                                                                                          U8500 BLOCK DIAGRAM

                                                                                                                          NovaThor U8500 block diagram - ST-Ericsson

                                                                                                                          ST-ERICSSON NOVATHOR U8500 POWERS NEW SAMSUNG GALAXY S ADVANCE [ST-Ericsson press release, Feb 28, 2012]

                                                                                                                          New Samsung Android-powered smartphone is first from company to use ST-Ericsson NovaThor platform

                                                                                                                          Today at Mobile World Congress, ST-Ericsson, a world leader in wireless platforms and semiconductors, announced that Samsung is now a customer of the ST-Ericsson NovaThor™ platform. The new Samsung GALAXY S Advance Android-powered smartphone, announced last month, selected the ST-Ericsson NovaThor™ U8500.

                                                                                                                          “The U8500 platform’s high level of integration enables handset manufacturers to produce small, slim yet powerful smartphones – like the Samsung GALAXY S Advance,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “Samsung is known for their powerful smartphones, strong design aesthetics, and solid user experiences and we could not be more pleased that they selected ST-Ericsson as a partner.”

                                                                                                                          The NovaThor U8500 smartphone platform offers dual core technology in a low-power but high-performance solution and integrates a state of the art HSPA+ modem and application processor featuring dual-core ARM® Cortex™-A9. Using the U8500, the Samsung GALAXY S Advance smartphone features 1GHz processor speed, HSPA 14.4 connectivity, a 5-megapixel camera and a 4.0-inch Super AMOLED display.

                                                                                                                          The Samsung GALAXY S Advance is expected to be available in March in parts of Europe, Asia, China and Latin America.

                                                                                                                          Samsung offers style and power with GALAXY S Advance [Samsung Mobile press release, Jan 30, 2012]

                                                                                                                          Latest addition to Android-powered GALAXY portfolio delivers sleek curved design with Dual Core performance
                                                                                                                          Samsung Electronics Co., Ltd, a global leader in digital media and digital convergence technologies, today announced the launch of the Samsung GALAXY S Advance. Designed for those who define themselves by the phone they carry, the GALAXY S Advance strikes a balance of style, power and performance. It will be available in Russia starting from February, and then be gradually rolled out in CIS, Europe, Africa, Middle East, Southeast and Southwest Asia, Latin America and China.
                                                                                                                          “The GALAXY S Advance adds to the successful track record of the GALAXY smartphone range with a phone that combines power and style with all the versatility of Samsung’s Hub services,” said JK Shin, President of IT & Mobile Communications Division at Samsung Electronics.
                                                                                                                          Dual Core performance, curved design and Super AMOLED display
                                                                                                                          Powered by a dual core 1.0 GHz processor and HSPA 14.4 Mbps connectivity, the GALAXY S Advance has been built with power and connectivity in mind, delivering great versatility and a highly responsive user interface for easy multitasking. Application start-ups are faster with virtually no lag time, and the user experience is boosted with smoother screen transitions, faster image processing, and enhanced Web download and browsing performance.
                                                                                                                          The GALAXY S Advance’s curved glass design enhances handling of the phone and fits the user’s facial form easily and naturally. Its 4.0” Super AMOLED display provides the stunning visuals users have come to expect of Samsung GALAXY smartphones, offering unparalleled color reproduction and ensuring that photos and videos captured with the device’s 5MP camera can be enjoyed with vivid clarity.
                                                                                                                          The Samsung user experience
                                                                                                                          Running on Android Gingerbread and featuring Samsung’s TouchWiz user interface, the GALAXY S Advance enables users to stay connected through the Samsung Hubs and ChatON services. Music Hub offers a full music store experience with access to over 11 million tracks and the ability to fully personalize users’ own music catalogues. Readers Hub offers access to over 2.3 million e-books, 3,500 magazine and 200 newspaper titles; while the hugely popular Game Hub offers access to thousands of catalogued games supplemented by gamer news feeds and news.
                                                                                                                          Samsung’s cross platform communication service, ChatON connects all phone users into a single community using phone numbers instead of usernames and passwords, provides aneasy instant messaging, group chatting and sharing of content in multiple formats—images, video, voice, contacts, calendar—to make messaging simpler and more intuitive than ever.
                                                                                                                          The GALAXY S Advance also features Find My Mobile, a unique lost-phone management system that ensures secure phone data encryption in case of phone loss, and that enables users to trace their lost phone directly via the Web or even delete the device’s data remotely.
                                                                                                                          For multimedia content and more detailed information, please visit www.samsungmobilepress.com
                                                                                                                          Samsung Galaxy S Advance Product Specifications:
                                                                                                                          Network
                                                                                                                          HSPA 14.4 Mbps 850 / 900 / 1900 / 2100
                                                                                                                          EDGE / GPRS 850 / 900 / 1800 / 1900
                                                                                                                          Processor
                                                                                                                          1 GHz Dual-Core Processor
                                                                                                                          Display
                                                                                                                          4.0” WVGA (480×800) Super AMOLED display
                                                                                                                          OS
                                                                                                                          Android 2.3 (Gingerbread)
                                                                                                                          Camera
                                                                                                                          Main (Rear) : 5 Megapixel Auto Focus Camera with LED Flash
                                                                                                                          Sub (Front) : 1.3 Megapixel Camera
                                                                                                                          Video
                                                                                                                          Codec : MPEG4, H.263, H.264, WMV, DivX, VC-1
                                                                                                                          Recording / Playback : 720@30 fps
                                                                                                                          Audio
                                                                                                                          Codec : MP3, AAC, AAC+, eAAC+, WMA, AC3
                                                                                                                          Music Player with SoundAlive
                                                                                                                          3.5 mm Ear Jack, Stereo FM Radio with RDS
                                                                                                                          Value-added

                                                                                                                           

                                                                                                                          Features
                                                                                                                          – Samsung TouchWiz / Samsung L!ve Panel UX
                                                                                                                          – Samsung Apps
                                                                                                                          – Samsung Kies 2.0 / Samsung Kies air / AllShare
                                                                                                                          ChatON (Downloadable via Samsung Apps)
                                                                                                                          Readers Hub (Downloadable via Samsung Apps)
                                                                                                                          Music Hub
                                                                                                                          Game Hub
                                                                                                                          *Service availability differs by region
                                                                                                                          GoogleTMMobile Services
                                                                                                                          – Android Market™, Gmail™, YouTube™, Google Maps™,
                                                                                                                          Syncing with Google Calendar™
                                                                                                                          – Polaris Office
                                                                                                                          – Find My Mobile
                                                                                                                          – A-GPS
                                                                                                                          Connectivity
                                                                                                                          Bluetooth® technology v 3.0 High Speed
                                                                                                                          USB 2.0
                                                                                                                          Wi-Fi 802.11 a / b / g / n
                                                                                                                          Sensor
                                                                                                                          Proximity, Accelerometer, Geomagnetic, Light, Gyroscope
                                                                                                                          Memory
                                                                                                                          8 / 16 GB User memory + 768 MB (RAM)
                                                                                                                          MicroSD (up to 32 GB)
                                                                                                                          Size
                                                                                                                          123.2 x 63 x 9.69 mm, 120 g
                                                                                                                          Battery
                                                                                                                          Standard battery, Li-ion 1.500 mAh

                                                                                                                          TWO NEW XPERIA SMARTPHONES FROM SONY MOBILE COMMUNICATIONS POWERED BY ST-ERICSSON NOVATHOR PLATFORM [ST-Ericsson press release, Feb 26, 2012]

                                                                                                                          Xperia P and Xperia U join growing list of smartphones that have NovaThor U8500 inside

                                                                                                                          ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today that two new phones from Sony Mobile Communications will be leveraging the ST-Ericsson NovaThor™ U8500 platform. The Xperia™ P and Xperia™ U are the first two smartphones by Sony Mobile Communications to use the NovaThor complete mobile platform solution, combining application processing, modem and connectivity.

                                                                                                                          “We have added Sony Mobile Communications to the growing list of smartphone manufacturers that have selected our NovaThor U8500 platformto power their newest smartphones,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “With its combination of a dual-core SMP processor and a high-end 3D graphics accelerator, the NovaThor U8500 enables a fast and smooth mobile web-browsing experience together with high definition multimedia creation and consumption on powerful next-generation smartphones like Xperia P and Xperia U from Sony.”

                                                                                                                          Key features for Xperia P

                                                                                                                          • 4” Reality Display with WhiteMagic technology powered by Mobile BRAVIA Engine for an ultra-bright and power efficient viewing experience.
                                                                                                                          • 1 GHzdual-core processor for super fast performance with 16GB flash storage.
                                                                                                                          • 8MP camera with unique fast capture and HD recording.
                                                                                                                          • NFC enabled with easy HDMI and DLNA connectivity to share content.
                                                                                                                          • Launches on Android platform 2.3 (Gingerbread), upgrade to Android platform 4.0 (Ice Cream Sandwich) during the second quarter of 2012.

                                                                                                                          Key features for Xperia U

                                                                                                                          • 3.5” Reality Display powered by Mobile BRAVIA Engine.
                                                                                                                          • 1 GHzdual-core processor for super fast performance.
                                                                                                                          • 5MP camera with unique fast capture and HD recording.
                                                                                                                          • Crisp and loud listening with xLoud™ and 3D surround sound audio technology.
                                                                                                                          • Launches on Android platform 2.3 (Gingerbread), upgrade to Android platform 4.0 (Ice Cream Sandwich) during the second quarter of 2012.

                                                                                                                          Xperia P and Xperia U will launch during the second quarter.

                                                                                                                          Notes to Editors

                                                                                                                          The NovaThor family combines advanced application processing, a high speed mobile broadband modem and a full connectivity suite in a complete platform. The NovaThor U8500 integrates a dual-core 1GHz Cortex A9 processor, an ARM Mali-400 GPU and a HSPA+ modem in a single die.

                                                                                                                          Another Sony smartphone powered by the NovaThor U8500 [ST Ericsson technology blog, March 15, 2012]

                                                                                                                          The new Xperia™ sola, announced by Sony Mobile Communications this week, is the latest addition to its portfolio of Android powered Xperia smartphones – and the latest smartphone to be powered by the ST-Ericsson NovaThor™ U8500 platform.

                                                                                                                          With its combination of a dual-core SMP processor and a high-end 3D graphics accelerator, the NovaThor U8500 enables a fast and smooth mobile web-browsing experience together with high definition multimedia creation and consumption on powerful next-generation smartphones.

                                                                                                                          The Xperia sola also features a new amazing technology called floating touch, giving people the ability to control the smartphone without even touching it. Check out the video below to check out the phone and for a brief demonstration of floating touch technology.

                                                                                                                          Sony Xperia sola is the latest Xperia smartphone, featuring the brand new amazing technology called floating touch. Floating touch gives you the ability to control the smartphone with out even touching it. Get a full browser experience where you can hover above links in your Xperia sola with floating touch, and check out the magic live wall paper reacting to floating touch.

                                                                                                                          The new Xperia sola joins growing list of smartphones that have the NovaThor U8500 inside. And just last month at Mobile World Congress, we announced that the Xperia P and Xperia U also use the NovaThor U8500platform.

                                                                                                                          The Xperia sola will be available to consumers globally in black, white and red in the second quarter.

                                                                                                                          Zenithink ST-Ericsson U8500 based 3G 1024×600 Tablet [Charbax YouTube channel, March 14, 2012]

                                                                                                                          Zenithink shows their new ST-Ericsson U8500 Dual-core ARM Cortex-A9 based tablet designed by Ontim with a built-in 3G HSPA+ modem, bluetooth, WiFi, and a decent 1024×600 screen resolution. The price is $150 for an order of at least 1000 units. They also show a $65 AmLogic based Android set-top-box with a built-in DVB-T tuner.

                                                                                                                          ST-ERICSSON NOVATHOR U8500 POWERS NEW TABLET FROM ONTIM [ST-Ericsson press release, Feb 27, 2012]

                                                                                                                          ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today at Mobile World Congress that Ontim has selected the NovaThor U8500 platform for its newest tablet. This tablet will be the first to be commercially available based on the NovaThor U8500 platform.

                                                                                                                          “Ontim has selected the NovaThor U8500to power their newest Android-based tablet,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “ST-Ericsson’s U8500 platform integrates a state of the art HSPA+ modem and application processor featuring dual-core ARM® Cortex™ A9. As a result, the U8500 can easily power the Ontim tablet five-megapixel built-in camera and high-definition digital camcorder as well as enable a full web-browsing experience.”

                                                                                                                          “The new Ontim WP8500 tablet is the first seven-inch handheld tablet delivering an outstanding user experience and performance thanks to the NovaThor U8500,” said Bob Huo, CEO of Ontim. “We were able to bring this tablet to market quickly by working closely with ST-Ericsson engineering and the maturity of the solution.”

                                                                                                                          In addition to the U8500, the Ontim WP8500 tablet also leverages the ST-Ericsson CG2900 and CW1100 connectivity solutions.

                                                                                                                          The seven-inch Ontim WP8500 will launch with Android 4.0 (Ice Cream Sandwich). The Ontim WP8500 tablet is expected to be available in March.

                                                                                                                          http://www.advancedsubstratenews.com/2012/03/important-news-comes-out-of-recent-fd-soi-workshop/

                                                                                                                          http://semimd.com/blog/2012/03/12/st-ericsson-adopts-fd-soi-for-mobile-products/

                                                                                                                          The low priced, Android based smartphones of China will change the global market

                                                                                                                          During the 12 months or so China took over the overall leading market role for smartphones from the key markets considered to be in the lead: US, Australia, Brazil, Great Britain (GB), Germany, France, Italy and Spain.

                                                                                                                          An even more dramatic change was that while on the old, combined lead market of the above countries high/moderate margin products were the dominating ones, on the new lead market of China average retail prices went down in the second quarter of 2012 to 1560 yuan (i.e. US$246) for the #1 Android with a whopping 82.8% market share, and to 1320 yuan (i.e. US$208) for the #2 Symbian now having only 6% share of the market.

                                                                                                                          It is notable as well that in China Apple had only a 6% market share vs. 23.7% in the combined old lead markets. According to a recent Reuters video report from Hong Kong we are witnessing (you can also watch this report in this post, as embedded well below in the following elaboration of details):

                                                                                                                          … commoditization of smartphones … hardware specifications for the handsets have already peaked…

                                                                                                                          A race to the bottom therefore will present a major challenge for Apple and Samsung who put together have dominated the industry in the last couple of years. If the China trends spread globally the shift to cheaper handsets will mean tighter margins and slower growth for this industry powerhouses and new opportunities for little known upstarts like Xiaomi.

                                                                                                                          Given my previous trend tracking posts the change will even be more dramatic as:

                                                                                                                          1. The best smartphone based on the MediaTek MT6577 both technically and in terms of price is the MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012], which is also the best example of the low priced, Android based smartphones of China will change the global market.
                                                                                                                          2. Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 16, 2012]
                                                                                                                            Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
                                                                                                                            Smartphone-like Asha Touch from Nokia: targeting the next billion users with superior UX created for ultra low-cost and full touch S40 devices [July 20 – Aug 12, 2012]
                                                                                                                            MediaTek’s ‘smart-feature phone’ effort with likely Nokia tie-up[Aug 15-31, 2012]
                                                                                                                          3. Update: China to ship 300 mil. smartphones in ’13: MediaTek head [The China Post, Sept 26, 2012]: … overall shipments in China may reach 200 million in 2012.
                                                                                                                          4. Update: China market: Dual-core CPUs, 4-inch displays become standards for entry-level smartphones [DIGITIMES, Sept 17, 2012]:
                                                                                                                          Local brands in China have made upgrades to the specifications of their entry-level smartphones for the CNY1,000-1,500 (US$158-237) segment making dual-core 1GHz processors and 4-inch displays the industry standards, according to industry sources.
                                                                                                                          Prices of the previous mainstream models with single-core CPUs and displays below 4-inch sizes for the CNY1,000 segment in the first half of 2012 are now expected to drop to CNY500-800, the sources added.
                                                                                                                          China Unicom has led the purchase of the upgraded dual-core, 4-inch display smartphones recently, and its suppliers are all China-based vendors including Huawei Technologies, ZTE, Lenovo, Coolpad, TCL, Hisense, K-Touch and Wanlida, the sources revealed, adding that those makers will source chipset solutions from Qualcomm or MediaTek.
                                                                                                                          First-tier international players did not participate in China Unicom’s procurement on concerns of pricing and hardware specifications, the source asserted.
                                                                                                                          However, the pace of hardware upgrading may start slowing down as telecom companies in China are mulling reducing their subsidies to smartphone subscribers, while smartphone makers are also trying to maintain their profit margins, commented the sources.
                                                                                                                          The next round of competition will shift from hardware to software including product design, user’s interface and also smart audio recognition, the sources noted.

                                                                                                                          Neither Apple nor Samsung reacted to these challenges yet. Nokia was also playing safe with its recent announcement:
                                                                                                                          Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6, 2012]

                                                                                                                          We may expect a fundamental reorganisation of the market in the next two quarters.

                                                                                                                          Meanwhile read through the details included below and make your own, hopefully more fine-tuned conclusions and predictions:

                                                                                                                          imageimage

                                                                                                                          See: Kantar: Windows Phone has overtaken RIM Market Share in USA, “Key 8 Countries”
                                                                                                                          [WMPoweruser, Sept 3, 2012]

                                                                                                                          imageimage

                                                                                                                          Note that in terms of mobile data traffic the market share is quite different. For North America (U.S. and Canada) Chitika Insights, the independent research arm of online ad network Chitika, released the following web usage market share report [Sept 5, 2012]:

                                                                                                                          image

                                                                                                                          Remark: iPads and other tablets are included here as well!

                                                                                                                          Relative to all that China is a quite different story:

                                                                                                                          3G phones months shipments reach 21.64 million, domestic mobile share over 70% – 3G手机月出货量达2164万部 国产手机份额超七成 [Sohu IT – 搜狐IT, Sept 10, 2012]

                                                                                                                          According to data published by the Telecommunications Research Institute of the Ministry of Industry and Information Technology …
                                                                                                                          根据工业和信息化部电信研究院公布的数据 …

                                                                                                                          [the data in the translated Chinese text I’ve compiled into the below table:]

                                                                                                                          image

                                                                                                                          China sees soaring smartphone market in Q2 [Xinhua, Sept 3, 2012]

                                                                                                                          Beijing: China’s smartphone market saw its sales volume soar to 38.19 million units in the second quarter, according to a report released Monday by market researcher Analysys International.

                                                                                                                          The figure represented a 22.5-per cent increase compared with that of the previous quarter and a sharp rise of 127.1 per cent over the corresponding period in 2011, said the report.

                                                                                                                          Nearly 67 million mobile phones were sold in China in the second quarter, the report said, representing a 1-per cent decrease from the previous quarter and a 2-per cent decrease from the corresponding period in 2011.

                                                                                                                          Stellar growth sees China take 27% of global smart phone shipments, powered by domestic vendors [Canalys press release, Aug 2, 2012] – Android is the clear platform of choice, accounting for 81% of Chinese shipments

                                                                                                                          Shanghai, Palo Alto, Singapore and Reading – Canalys published its final Q2 2012 country-level shipment estimates to clients yesterday. Results show that China saw phenomenal growth of 199% year-on-year and 32% over the previous quarter. In total, more than 42 million smart phones were shipped into the channel in China in Q2 2012, representing the second consecutive quarter of record breaking volumes in a single country market. China accounted for 27% of the 158 million global smart phone shipments, compared to 16% for the United States.
                                                                                                                          Notably, growth in China was heavily driven by domestic vendors, while international vendors struggled to keep pace.
                                                                                                                          While Samsung maintained its overall leadership position in China with a 17% market share, this reduced sequentially as volumes were flat and as several local vendors closed the gap. ZTE, Lenovo and Huawei were the second-, third- and fourth-placed vendors, ahead of Apple, making up a third of the market. They achieved growth of 171%, 2,665% and 252% year-on-year respectively. Collectively, domestic Chinese vendors shipped 25.6 million units, representing a growth of 518% and 60% of the market. By comparison, international vendors grew by a more modest 67% to 16.7 million units. Apple fell to fifth place in China. While its shipments were up 102% year-on-year, they were down 37% compared to Q1 2012.
                                                                                                                          ‘The rise of the domestic tier-one brands has been aided by a number of factors. Their reactiveness to market demands and deep understanding of local consumer behavior and preferences have been key in helping them surpass international peers in the fast-evolving Chinese market. Local tier-one vendors have worked hard in recent quarters to greatly improve their brand resonance among consumers and to expand and enhance their relationships and influence within operators,’ said Canalys Research Director for China, Nicole Peng. ‘But the tier-two vendors — the likes of Oppo, K-Touch and Gionee — have also stamped their mark, boosting smart phone shipments into tier-three and tier-four cities, predominantly through the open channels. As feature phone vendors, they already have established partnerships and strong brand awareness. These domestic vendors are making significant progress transitioning their portfolios and customer bases to be more focused on smart phones.’
                                                                                                                          Nokia and Motorola both lost significant ground in China, with Nokia’s volumes down 47% on Q2 2011. ‘Among the international vendors, only HTC managed an outstanding performance in mainland China. Its shipments grew 389% year-on-year to reach 1.8 million units for the quarter,’ said Jessica Kwee, Canalys Research Analyst. ‘Its success this quarter is heavily based on the strong performance of Desire V series devices, designed with the local China market in mind, underscoring the importance of tailoring propositions to local consumer preferences.’
                                                                                                                          Android has become a major growth driver in China, running on 81% of the smart phones shipped in China in Q2 2012.
                                                                                                                          On a global basis, Android continued to grow in significance, surpassing 100 million quarterly smart phone shipments for the first time and reaching two-thirds share of the market. ‘Growth in Android volumes of 110% far outpaced growth in the overall market of 47% year-on-year, heavily driven by Samsung, which saw Android volumes of over 45 million, contributed to by a full and broad portfolio of products, from its high-end flagship Galaxy S III down to its aggressively priced Galaxy Y and Galaxy Mini. Its sponsorship of the London Olympics and subsequent product placements are sure to attract new customers to ensure that Q3 delivers a strong performance,’ commented Pete Cunningham, Canalys Principal Analyst.
                                                                                                                          Samsung retained its gold medal position in the global smart phone market with a 31% share, followed by Apple and Nokia once again. Huawei and ZTE were unable to push in on the global top five with shipments of their own branded devices. HTC moved up to fourth place, though, just ahead of RIM, which shipped 8.5 million units in the calendar quarter.

                                                                                                                          Global smart phone market

                                                                                                                          Analyst contacts
                                                                                                                          To speak with any analyst quoted in this release, please contact the appropriate Canalys office: Nicole Peng, Jessica Kwee (Canalys APAC), Pete Cunningham (Canalys EMEA). Alternatively, you can speak with other members of Canalys’ global team of mobile analysts: Chris Jones (Canalys Americas), Rachel Lashford (Canalys APAC), Tim Shepherd (Canalys EMEA).
                                                                                                                          About Canalys
                                                                                                                          Canalys is an independent analyst firm that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. Our customer-driven analysis and consulting services empower businesses to make informed decisions and generate sales. We stake our reputation on the quality of our data, our innovative use of technology, and our high level of customer service.

                                                                                                                          Smart phone and pad forecasts show varying OS fortunes [Canalys press release, Sept 10, 2012] – China and Android influence smart phone landscape, the US and Apple dominate pads

                                                                                                                          Shanghai, Palo Alto, Singapore and Reading – The latest product announcements by leading smart phone and pad vendors will help drive consumer demand to new heights, according to Canalys. It forecasts that in 2016, global annual smart phone shipments will be around 1.2 billion units, meaning a CAGR (Compound Annual Growth Rate) of 19.5%. It predicts pad shipments in the same year will hit 207 million – a CAGR of 26.8%.
                                                                                                                          Apple’s latest unveiling is attracting extraordinary interest and competitors have also made several major announcements in the past week, including Windows 8 devices from Nokia and Samsung; new Android smart phones from Sony, Motorola and Samsung; and Amazon’s enhanced Kindle Fire pads. With these big vendors attracting the headlines, Canalys has issued a timely reminder that the trends across pads and smart phones in various countries will be markedly different.
                                                                                                                          In smart phones, Canalys expects Asia Pacific to remain the largest region by volume, with annual shipments reaching 594 million by 2016. China will account for almost half of all shipments in the region and nearly a quarter of the world’s smart phones in 2016. This equates to only 10 million less than is forecast to ship in the whole of the Americas in that year.
                                                                                                                          Canalys managing director for Mobile and APAC, Rachel Lashford, said, ‘The latest, in-depth research for our dedicated Smart Phone Analysis China service reveals there will be a substantial increase in the number of first-time smart phone users in China over the next 12 months, while feature phone shipments will continue to decline. Smart phone sales will move beyond tier-one and tier-two cities.’
                                                                                                                          China’s domestic feature phone vendors are rapidly moving their businesses to smart phones, supported by low-cost solutions from chipset providers, such as MediaTek, Spreadtrum and Qualcomm’s QRD.
                                                                                                                          ‘We anticipate strong demand from local Chinese vendors selling in both operator and open channels,’ said Nicole Peng, Canalys Research Director for China. ‘Chipset vendors are reporting growing momentum in 2.5G (EDGE) smart phone solutions. For less developed areas where 3G coverage is limited, 2.5G smart phones have advantages in cost and battery life. They are becoming popular with consumers, especially where prices are already close to those of feature phones (around RMB500, US$78). The tier-three and tier-four cities are feature phone vendors’ traditional strongholds. Local vendors will use their long-standing relationships with open channels and their established infrastructure to distribute smart phones, with or without operator subsidies, over the next few years.’
                                                                                                                          In terms of percentage growth, Canalys expects Latin America to move fastest, with a CAGR to 2016 of 27.3%. It forecasts good double-digit growth in all countries, but Brazil and Mexico will account for more than half of all shipments in the region.
                                                                                                                          Globally, Canalys expects Android to remain dominant, with 57% of the smart phones shipped in 2016 running the OS (up from 49% in 2011). It expects Apple’s share of this much larger market to remain similar to today, at around 18%. Microsoft is expected to make inroads over the coming years.
                                                                                                                          In the pad market, however, the OS picture will be quite different. Canalys expects Apple to take a little under half of the market in 2016. The plethora of Windows 8 pads that will be introduced over the next few years are predicted to bring Microsoft’s share to around 17%. Competitively priced Android pads, such as Google’s Nexus 7 and Amazon’s Kindle Fire models will have an impact in terms of volumes, but Android’s share is forecast to remain relatively stable at 35%, unless vendors make radical improvements to the overall user experience. In contrast to smart phone market trends, the US is expected to dominate pad shipments, with the volume more than doubling to 88 million units in 2016. China is expected to be the second largest country market, with shipments of around 20 million.
                                                                                                                          ‘Pads are the fastest growing consumer electronics products in history and are forecast to represent 29% of total PC shipments in 2016. But the market remains dominated by a single vendor. Other PC and smart phone vendors are currently finding it hard to weaken Apple’s position,’ said Canalys Analyst Tim Coulling. ‘The only product that most would consider a big hit is the Kindle Fire, brought to market by Amazon – an Internet retailer. Tight integration of hardware, software and services is a prerequisite for competing in the pad market, even at low price points, and fragmentation among other pad vendors’ offers helps Apple maintain its position.’
                                                                                                                          Analyst contacts
                                                                                                                          To speak with any analyst quoted in this release, please contact the appropriate Canalys office: Rachel Lashford, Nicole Peng (Canalys APAC), Tim Coulling (Canalys EMEA). Or contact another member of Canalys’ global analyst team: Chris Jones (Canalys Americas), Jessica Kwee, Pin-Chen Tang (Canalys APAC), Pete Cunningham, Tim Shepherd, Tom Evans (Canalys EMEA).

                                                                                                                          Analysys data: 2012Q2 China Android Smartphone market 82.8% [Analysys International release, Sept 5, 2012] as translated by Bing:

                                                                                                                          Easy views network hearing” easy views international: according to EnfoDesk easy views intellectual library industry database recently publishing of 2012 2nd quarter China phone terminal market monitoring report under displayed, 2 quarter, China smart phone terminal (does not containing parallel and cottage machine) market in the, Android Department sales accounted for than from Shang last quarter of 76.7% upgrade to this quarter of 82.8%, net 6.1%. While the Symbian sales percentage has continued to free fall to the ground from the parent 11.8% to 6%. In addition, iOS small callback to 6%.

                                                                                                                          2012Q2 OS smartphone market penetration in China (not including parallel and cottage)
                                                                                                                          2 quarter pick-up systems from Smartphone ( encyclopedia of Analysys : smartphones ) [average smartphone] price changes, Android from 1670 [yuan i.e. US$263] last quarter, continuing down to the quarter of 1560 [yuan i.e. US$246]; 1320 [yuan i.e. US$208] of Symbian from last quarter down to 1170 dollars [yuan i.e. US$185] this quarter.

                                                                                                                          2012Q2 China Android and Symbian Smartphone price
                                                                                                                          (not including parallel and cottage)
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                                                                                                                          Analysys data: 2012Q1 China Android Smartphone market share increased from 76.7% [Analysys International release, June 6, 2012] as translated by Bing:

                                                                                                                          Analysys Web video” Analysys: at present, according to EnfoDesk Analysys think-tank on traditional retail markets of mobile phones (of the last quarter of 2012 quarterly monitoring mobile terminal market) data monitor display: Chinese smartphone market, Android system’s market share in handset sales rising 5 consecutive quarters.
                                                                                                                          Vulnerability analysis:
                                                                                                                          In the last quarter of 2012 China Mobile end-markets quarterly monitoring data show end of 2012 Q1, carrying Android in the Smartphone market system’s market share in the Smartphone Terminal 76.7%, 10% average quarterly market share gain. At the same time, as the Smartphone market continues to mature, carrying Android system average Smartphone prices are also way down to 1670 [yuan i.e. US$263 from 2300 yuan i.e. US$363 a year earlier].
                                                                                                                          Combined with traditional mobile phone sales channels under the line status, EnfoDesk Analysys Research think-tank believes that mobile phone sales market share of Android system continue to enhance, benefit from its open source nature attract numerous manufacturers to participate in, and China in the past two years in the Smartphone market and 3G business increment. Through the performance of manufacturers on the market today as well as the impact of EnfoDesk Analysys think tank study says
                                                                                                                          1. Is now dominated by application of the formation of eco-systems, as well as the Android open source, attracting new industry participants, such as Internet companies to enter product prices are depressed, make the increasingly intense market competition environment, product prices are driven down, threats to traditional enterprise bargaining power in the channel.
                                                                                                                          2012Q1 China smartphone sales share
                                                                                                                          2. Fragmentation trends exacerbate the Android system. Traditional manufacturing enterprises to overcome the effects of homogenization of products of intelligent systems, secondary development on the Android system, causes the application to version adjusted accordingly, application developer development costs gradually increased.
                                                                                                                          Smartphone price quarterly changes of 2011Q1-2012Q1 Android system
                                                                                                                          3. Sales in this period dominated by domestic brands in the low-end products, intelligent products of these enterprises continue to 3G input costs on the production line. But at the same time, while veteran international brand market share continues to decline, it would shorten the product line, focusing its research and development production 4G products research and development. With the advent of 4G era, will reshuffle the mobile terminal market. (Analysys International)
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                                                                                                                          Related reading:
                                                                                                                          2011Q2 China’s massive increase in Android share Symbian tumble

                                                                                                                          Is sun setting on smartphone profit miracle? [ReutersVideo YouTube channel, Aug 16, 2012]

                                                                                                                          … in 2 years the low-end has blown up …
                                                                                                                          China smartphone sales by price tier Q1 – 2010 Q1 – 2012
                                                                                                                          <1,500 yuan [<US$ 237] 17.7% 60%
                                                                                                                          1,500-3,000 yuan [US$ 237-473] 51.5% 24%
                                                                                                                          >3,000 yuan [>US$ 473] 30.8% 16%
                                                                                                                          Source: Jefferies Research
                                                                                                                          Faster, bigger, better: the smartphone tech arms race has produced great handsets and great returns. But China’s market trends suggest cheaper is set to be the next battle cry.
                                                                                                                          Cynthia Meng, China/HK TMT Equity Research, Jefferies Hong Kong:
                                                                                                                          [00:49] Next year it’s going to be about who is going to provide the best value for my money from a consumer point of view, from a telco point of view, because we think that hardware specifications for the handsets have already peaked. [01:03]
                                                                                                                          Narrator, xxx Gordon in Hong Kong:
                                                                                                                          In other words the oversized screen and quadcore processors of your precious Samsung [Galaxy] S III will soon be standard and achieved in handsets in China. [01:13]
                                                                                                                          commoditization of smartphones
                                                                                                                          [02:11] A race to the bottom will present a major challenge for Apple and Samsung who put together have dominated the industry in the last couple of years. [02:19] If the China trends spread globally the shift to cheaper handsets will mean tighter margins and slower growth for this industry powerhouses and new opportunities for little known upstarts like Xiaomi. [02:26]

                                                                                                                          The Chinese View: VIDEO: STUDIO INTERVIEW: CHINA’S SMARTPHONE MARKET [CCTV News – CNTV English, Sept 3, 2012]

                                                                                                                          iPhone Ranked Seventh in China’s Smartphone Market — Watch Out, ZTE [AllThingsD.com, Aug 24, 2012]

                                                                                                                          Apple’s iPhone has been gaining a lot of traction in China recently. As Apple CEO Tim Cook said during the company’s third-quarter earnings call, greater China accounted for two-thirds of Apple’s revenue in the Asia-Pacific region during the period.
                                                                                                                          “In terms of iPhones in general in mainland China, we were incredibly pleased with our results,” Cook said. “We were up over 100 percent, year over year.”
                                                                                                                          That’s an impressive achievement. But Apple still has a lot of work to do in China before the iPhone claims the same levels of market penetration it enjoys in the U.S. In China, the iPhone has captured about 7.5 percent of the smartphone market, compared to rival Samsung, which has claimed more than 20 percent, according to IHS iSuppli. Despite its popularity in the country, the iPhone is still ranked seventh in the Chinese smartphone market.
                                                                                                                          Why? Two reasons. First, Apple doesn’t yet offer a truly low-end smartphone that appeals to price-conscious Chinese consumers. (To be clear, China Telecom is offering the iPhone fully subsidized, but it requires subscribers to sign a contract that ties them to a two-year $62 per month plan.) Second, and more importantly, the iPhone doesn’t yet support Time Division Synchronous Code Division Multiple Access (TD-SCDMA), China’s homegrown wireless standard. And until it does, China Mobile, the world’s largest wireless carrier, can’t offer it to its 688 million or so subscribers.
                                                                                                                          “Among all the international smartphone brands competing in China, Apple is the only one not offering a product that complies with the domestic TD-SCDMA air standard,” IHS iSuppli’s Kevin Wang said in a statement. “For Apple, this is a huge disadvantage, as TD-SCDMA represents the fastest-growing major air standard for smartphones in China, with shipments of compliant phones expected to rise by a factor of 10 from 2011 to 2016.”
                                                                                                                          In other words, if Apple wants access to the massive addressable market that China Mobile has to offer, it’s going to have to offer a lower-end iPhone variant designed specifically for TD-SCDMA, something it has been loath to do in the past, and hasn’t given any indication that it’s willing to do in the future. As Cook said during Apple’s last earnings call, the company feels that its business is strongest when it focuses on making the best products it can, not the most inexpensive ones.
                                                                                                                          “I firmly believe that people in the emerging markets want great products, like they do in developed markets,” Cook said. “And so we’re going to stick to our knitting and make the best products. And we think that if we do that, we’ve got a very, very good business ahead of us. So that’s what we are doing.”

                                                                                                                          Breakingviews: Apple v. Samsung [ReutersVideo YouTube channel, Aug 27, 2012]

                                                                                                                          Breakingviews columnists discuss the implications of Apple’s U.S. victory in the high-profile tech patent spat and the implications for future smartphone devices and lawsuits elsewhere.

                                                                                                                          Apple Should Take The $199 Chinese Smartphone Seriously [Seeking Alpha, Sept 6, 2012]

                                                                                                                          At a time when China is set to overtake the U.S. as the world’s largest smartphone market, little-known Chinese firms are prepared to battle it out for market dominance with the maker of the game-changing iPhone, Apple (AAPL). As per the predictions of IDC and Gartner, China’s smartphone shipments could hit 140 million this year, exceeding those in the United States.
                                                                                                                          There are a number of Chinese brands offering similar capabilities, nominally, as the iPhone at half the price, most of them using a forked version of Google’s (GOOG) Android. The names include ZTE Corp., Lenovo Group, and other small private firms like Xiaomi, Gionee, and Meizu Technology. Even cheaper smartphones are offered by Alibaba Group, Shanda Interactive, and Baidu (BIDU) for fewer than ¥1,000 (~$150 U.S.).
                                                                                                                          Xiaomi Technology, founded just two years ago, has emerged as a serious potential threat to the likes of Apple and Samsung in smartphone arena. According to its CEO, the company sold more than 3 million phones with revenues close to $1 billion for the first half of 2012. Its latest offering, a successor to its popular MiOne (MI) smartphone, the MI2, costs less than half the price of iPhone 4S, but exceeds its specifications. Xiaomi not only tries to mimic the iPhone’s specifications, but has also been able to charge fans ¥199 (~$31) to attend the Beijing launch of the phone, the same way as Apple followers would pay to see Steve Jobs showcasing new products. The Xiaomi conference was attended by more than 1,000 people, with the proceeds going to charity. The MI2, which is expected to hit the markets in October, will have quad-core Qualcomm (QCOM) S4 Pro SoC, an 8 mega-pixel camera, and a voice-assistant similar to Apple’s Siri, and is priced at ¥1,999 ($310). This is no cheap knock-off, but rather a serious piece of hardware packed with the latest technology.
                                                                                                                          The fascinating part of Android’s rise here is that Microsoft (MSFT) will likely see more profit from many of these phones than Google will due to the licensing agreements many of them have made to avoid patent issues with Redmond. Reports are spotty, but Microsoft collects anywhere from $5 to $15 per Android license and has deals with at least half of the phones sold. Moreover, it is very possible it makes more money than Google does.
                                                                                                                          In the coming years it is expected that Apple’s market share may flatten out or even dip, as it has this year, but market share is not Apple’s goal; it has always been about margins — selling a premium product at extremely high margins to those with the resources to not care about the upfront cost. Estimates from IDC place the sub-$200 smartphone at 40% of the shipments, while devices costing more than $700 made up 11% of the market, which is where Apple plays and why it still controls most of the profits generated by the industry. China and India make up 40% of new smartphone activations.
                                                                                                                          This huge difference in shipments is mainly due to the limited purchasing power of an average Chinese person, which is around ¥800-¥1,500 ($130-$240). By contrast, the iPhone comes with a price tag of around $800, the equivalent of two months of earnings of an urban Chinese person (in an area that has around 670 million people).
                                                                                                                          According to a report from Gartner, Apple’s market share by volume has been sliding and iOS‘ share of the mobile operating system space is expected to slip to third place by 2016 below Android and Windows Phone. The Gartner report is, however, very controversial as Windows Phone has not proven anything to this point, although Nokia’s (NOK) sales of its Lumia 610 and Asha line of proto-smartphones are keeping its brand alive while it searches for the killer phone. Even in its second-largest market, iPhone sales slipped for the April-June quarter due to inventory adjustments after the huge launch of the iPhone 4S.
                                                                                                                          Apart from these estimates, Apple also suffers on various fronts in China. The iPhone is backed by China Telecom and China Unicom, but the country’s and the world’s leading telco China Mobile (with about 655 million subscribers) has still not supported it. Apple and China Mobile are still working on the details of China Mobile’s implementation of CDMA, which requires Apple to build a specific phone for its network.
                                                                                                                          Responding to the competition and the difference between the iPhone and the local offerings, Apple recently slashed the price of the iPhone 3GS below $200. While an entry-level Apple phone is something that the market will absorb, part of Apple’s appeal is the status it confers and a 3GS simply not a strong enough status symbol to drive sales. Mix in that with Chinese preferences for buying from Chinese companies and this market becomes a whole lot harder for Apple to maintain not its sales per se — it can manipulate prices to maintain sales — but its extreme margins. The latest earnings call highlighted this as it sold a lot of lower-end iPads and iPhones in Asia, which pushed its results and future guidance under 40% net margins.
                                                                                                                          Companies like Lenovo, ZTE, and Huawei are gaining because they are Chinese and are providing good products at reasonable prices. Lenovo, in particular, is pushing its smartphone and PC strategy both up and down the value chain, similar to Samsung’s approach. It is working very well for Lenovo, whose revenues were up 40% in the second quarter when everyone else was complaining of softening business.
                                                                                                                          Apple’s problems are the standard problems for a company on top of the world; everyone will nibble away at it in various little ways. How it responds to this is key.
                                                                                                                          The recent lawsuit victory over Samsung and its pressing of the legal attack smacks of a company that is frightened. Why should it fear Samsung? And if it doesn’t, why did it go after Samsung and restrict consumer choice, a clear breach of its branding compact with its fans? Is it trying to push Samsung into Windows 8 Phone’s arms? All of these things point to further margin erosion for Apple and a slowing of its titanic growth without a new market to push into. As things stand now, staking a new position in Apple requires believing none of these issues matter.
                                                                                                                          It points to Apple becoming a value trap at some point in the future. Not every country, especially China, will grant Apple an injunction against knockoff competition; quite the opposite is true. Many investors are sitting on capital gains so large they can’t sell, and the dividend will pay them well enough to stay in even if the price goes nowhere. But new investors should be very careful in light of the market dynamics.

                                                                                                                          Microsoft adding staff, R&D in China mobile push [Associated Press, Sept 6, 2012]

                                                                                                                          BEIJING (AP) — Microsoft Corp. will hire more than 1,000 additional employees in China this year and boost research and development spending by 15 percent as it tries to catch up with Apple and Google in the fast-growing mobile Internet market, executives said Thursday.
                                                                                                                          The announcement adds to intensifying competition in wireless Internet in China, where nearly 400 million people surf the Web using mobile phones and other devices. Microsoft is promoting its Windows 8 mobile operating system but came late to the market and trails Apple Inc. and Google Inc., whose Android system is widely used in China.
                                                                                                                          “We respect that we have two players in the market which have a strong role, and we feel ready to attack and have different offers to basically change the game plan on that one,” said Microsoft’s CEO for China, Ralph Haupter, at a news conference.
                                                                                                                          The new employees will be in addition to Microsoft’s workforce of 4,500 in China and will be spread across research and development, marketing and customer service, Haupter said.
                                                                                                                          Research spending in China will rise by 15 percent over last year’s $500 million, according to another executive, Ya-Qin Zhang, Microsoft’s Asia-Pacific chairman for research and development. He said the current research staff of 3,000 would be expanded by about 15 percent.
                                                                                                                          Global technology companies and local rivals are spending heavily to gain a foothold in mobile Internet in the world’s most populous online market as Chinese users shift quickly to the new technology.
                                                                                                                          This week, Chinese search engine Baidu Inc. released its own new mobile browser to compete with Google and Apple and announced it will open a cloud computing center.
                                                                                                                          China had 538 million people online at the end of July, up 11 percent from a year earlier, according to the China Internet Network Information Center, an industry group. The share that uses wireless devices grew twice as fast, rising 22 percent to 388 million, or 70 percent of the total.
                                                                                                                          Android dominates the Chinese smartphone market, used on 76.7 percent of phones in the second first quarter of this year, according to Analysys International, a research firm. Apple’s iPhone dominates the higher end of the market.
                                                                                                                          Microsoft plans to recruit more local partners to develop mobile applications specifically for China, said Haupter. He said the company believes it has an advantage in doing that because developers can draw on their experience working on other Microsoft products.
                                                                                                                          Zhang said Microsoft’s six development centers in China that now spend about 80 percent of their time working on products for global markets will focus more on creating offerings tailored to Chinese customers.
                                                                                                                          Microsoft also plans to expand its cloud computing business in China, the executives said. Zhang said about 100,000 commercial customers now use its private cloud computing service and a service for use by the public is being developed.

                                                                                                                          Microsoft Names New Leaders in Key International Markets [Microsoft press release, April 13, 2012]

                                                                                                                          Ralph Haupter, currently serving as area vice president (AVP) for Microsoft Germany, has been promoted to corporate vice president and named CEO for Microsoft GCR. Haupter is replacing Simon Leung who has decided to leave Microsoft for personal and family reasons. Gordon Frazer, currently serving as managing director (MD) for Microsoft U.K., has been named chief operating officer (COO) for Microsoft GCR. He is replacing Michel van der Bel, who will assume the role of MD for Microsoft U.K. Haupter and van der Bel will report to Jean-Philippe Courtois, president of Microsoft International, and Frazer will report to Haupter. …
                                                                                                                          Haupter is a seven-year veteran of Microsoft, having delivered excellent and sustainable results in growth and profitability and repeatedly proving his ability to build and grow high-performing, diverse organizations. He previously served as head of the partner division for Europe, Middle East and Africa and general manager (GM) of Microsoft’s Small and Midmarket Solutions & Partners Group for Western Europe, both based in Paris, and served as COO for Microsoft Germany before becoming the German AVP. Before that, he worked for IBM both in Germany and internationally.
                                                                                                                          Frazer is a 16-year veteran of Microsoft, having served as the GM for Microsoft South Africa for four years and most recently as the Microsoft U.K. MD for the past six years. He brings a tremendous amount of operational expertise to the Microsoft GCR team from his various roles across both developed and emerging markets. His leadership in managing the full breadth and depth of Microsoft’s business in the U.K. will serve as a strong asset in helping take Microsoft China’s operations to the next level of efficiency and growth.

                                                                                                                          Leading the New Era, Winning the Future—Microsoft Announces Development Strategy in China [Microsoft China press release, Sept 6, 2012]

                                                                                                                          Partnering for an Innovative, Competitive, and Talented China

                                                                                                                          New leadership team in Greater China
                                                                                                                          (third from left is the COO Gordon Frazer and the fourth is the CEO Ralph Haupter)
                                                                                                                          September 6, 2012, Beijing– Microsoft China today announced its new strategy and commitment to partnering with the country for an innovative, competitive and talented China by further enhancing and accelerating investments. In the new fiscal year, Microsoft will recruit more than 1,000 staff in China, 50% of which will be college graduates. Microsoft’s annual R&D investment will exceed $500 million, and the company will explore local markets in more provinces and deepen its engagement in industrial informatization.
                                                                                                                          Over two decades of growth, Microsoft China has continued to penetrate deeply into increasingly important local markets. Ralph Haupter, Corporate Vice President, Chairman & CEO Microsoft Greater China Region, said: “Since entering China 20 years ago, Microsoft has grown steadily in China and acquired a deeper understanding of the Chinese market. Our new strategy reflects our perception, emphasis and commitment to the China market. In this new era, China and the entire Greater China Region will become the source of global innovations. Through comprehensive devices and services combined with cloud computing, Microsoft is working closely with the Chinese government, partners, customers and the academic world, entering this new era by leveraging our advantages.”
                                                                                                                          Haupter stressed that this year is a big year for Microsoft, with the introduction of many new products and technologies, and also a year where Microsoft China is making a great effort to further develop the market. “Our new leadership team in Greater China has helped develop a new strategy for customers and partners, deepening cooperation with governments of all levels to strengthen innovation in China. The team will popularize new technologies and explore new markets,” Haupter said.
                                                                                                                          Through continuous investment of innovation resources and improving the scale of partnerships in China over the years, Microsoft Asia-Pacific R&D Group has become Microsoft’s largest R&D base outside of the United States, with the most complete functions and innovation chain covering basic research, technology incubation, product R&D and industry cooperation. Chinese R&D teams have made great contributions to Microsoft products launched this year, such as Windows Server2012, Windows 8, New Office, SQL Server 2012 and Surface. Ya-Qin Zhang, Corporate Vice President and Chairman of Microsoft Asia-Pacific R&D Group, said: “We are lucky to be in an era where globalization is deepening, the IT revolution is emerging and China is rising. Microsoft’s continuous exploration in natural human-machine interfaces, mobile Internet and cloud computing will help us win the future and contribute to China’s sustainable development.”
                                                                                                                          Samuel Shen, COO of Microsoft Asia-Pacific R&D Group, said Microsoft’s software outsourcing business was now worth more than $200 million per year. In the future, Microsoft will continue to work closely with local communities through programs such as the Internet of Things, Big Data, cloud computing, cloud-based smart cities and the Microsoft Accelerator for Cloud Computing, accelerating the vision of “Innovation in China, Innovation for the World”
                                                                                                                          According to Microsoft’s new strategy in China, Microsoft is committed to cooperating with the Chinese government and industry, aligning with China’s priorities and partnering for an Innovative, Competitive, and Talented China. Gordon Frazer, Vice President and COO of Microsoft Greater China Region, said that over the next five years, Microsoft China will expand its footprint in China, deepen cooperation with governments of all levels and partners, improve customer support and foster talents on a broad scale:
                                                                                                                          • Expand Microsoft’s footprint in local markets: Over the next five years, Microsoft will expand its presence in over 20 cities across 15 provinces by expanding local teams, enhancing local management, working closely with local governments, making contributions to local informatization, building cloud-based smart cities, and providing cloud-based solutions for e-government, city management and citizen services.
                                                                                                                          • Accelerate local partner ecosystems and expand service coverage: Microsoft will deepen customer services, deliver joint services and solutions with partners, and engage in further convergence of informatization and industry upgrading to improve the core competency of Chinese enterprises. By the end of this year, Microsoft will set up its second technical support center in China to enhance support for Chinese customers and partners, share best practices and knowledge of supporting global customers to help them accelerate the adoption of new technologies and share with them the experience of providing cloud services to customers in Asia. Microsoft will also drive partners’ development through many forms: system-grade innovation support for OEMs, software engineering assistance for software outsourcing companies and innovative design references for hardware manufacturers.
                                                                                                                          • Foster talents in a large scale: Over the next five years, Microsoft will hire more talent in China to better serve and support its partners in China, foster talents for the Chinese software industry and improve the skills of Chinese youths.

                                                                                                                          China to Overtake United States in Smartphone Shipments in 2012, According to IDC [IDC press release, Aug 30, 2012]

                                                                                                                          Top Five Smartphone Markets and Market Share for 2011, 2012, and 2016 (based on shipments)

                                                                                                                          Country 2011 Market Share 2012 Market Share 2016 Market Share 2011 – 2016 CAGR
                                                                                                                          PRC 18.3% 26.5% 23.0% 26.2%
                                                                                                                          USA 21.3% 17.8% 14.5% 11.6%
                                                                                                                          India 2.2% 2.5% 8.5% 57.5%
                                                                                                                          Brazil 1.8% 2.3% 4.4% 44.0%
                                                                                                                          United Kingdom 5.3% 4.5% 3.6% 11.5%
                                                                                                                          Rest of World 51.1% 46.4% 46.0% 18.1%
                                                                                                                          Total 100.0% 100.0% 100.0% 20.5%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, 2012 Q2 Forecast Release, August 30 2012

                                                                                                                          Strong end-user demand and an appetite for lower-priced smartphones will make China (PRC) the largest market for smartphones this year, overtaking the United States as the global leader in smartphone shipments. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China will account for 26.5% of all smartphone shipments in 2012, compared to 17.8% for the United States.
                                                                                                                          “Looking ahead, the PRC smartphone market will continue to be lifted by the sub-US$200 Android segment,” said Wong Teck-Zhung, senior market analyst, Client Devices, IDC Asia/Pacific. “Near-term prices in the low-end segment will come down to US$100 and below as competition for market share intensifies among smartphone vendors. Carrier-subsidized and customized handsets from domestic vendors will further support the migration to smartphones and boost shipments. Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst.”
                                                                                                                          “Regionally, we expect smartphone demand to flow down to lower-tier cities,” added James Yan, senior market analyst for Computing Systems Research at IDC China. “After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols.”
                                                                                                                          “The fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends program. “Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities.”
                                                                                                                          “In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker program. “High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share.”
                                                                                                                          Top Five Markets for Smartphone Shipments
                                                                                                                          As it becomes the leading country for smartphone shipments this year, the PRC smartphone market will continue to grow, primarily on demand for lower-cost handsets. While this bodes well from a volume perspective, it also means lower average sales values (ASVs), thinner margins, and increased competition from all players. Over the course of the forecast, China’s share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.
                                                                                                                          Smartphone shipments into the United States will increase as users upgrade their devices and feature-phone users switch over to smartphones. Furthermore, a combination of lower-priced models, expansion of 4G networks, and the proliferation of shared data plans will encourage continued smartphone adoption. Smartphones are already the device of choice at the major carriers, and regional and prepaid carriers are following suit and competing with alternative service plans.
                                                                                                                          With smartphone penetration in India currently among the lowest in Asia/Pacific, the market has tremendous untapped growth potential. Low-end smartphones offering dual-SIM capability and local apps and priced around US$100 will rapidly bring this market to life. Although 3G data plans are currently too expensive for the majority of consumers in India, IDC expects the popularization of 3G, and in later years 4G, to drive smartphone uptake as operators roll out more affordable data plans and generous subsidies while expanding offerings to tier 2 and tier 3 cities. The affordability of service plans will be another important key to smartphone adoption in India.
                                                                                                                          Smartphone growth in Brazil will be bolstered by strategic investments by mobile operators, smartphone vendors, and regulators. Operators’ focus on increasing ARPU will drive greater demand for smartphones while smartphone vendors will look to reap greater profitability from offering such devices. The Brazilian government, meanwhile, will offer tax exemptions for smartphones and protect local manufacturing against foreign vendors. These factors, combined with solid end-user demand, will drive smartphone volumes in the coming years.
                                                                                                                          The United Kingdom has been one of the fastest growing smartphone markets in Western Europe, driven by the high operator subsidies and long-term post-paid contracts. Over the forecast period, smartphone shipments will continue to increase due to the introduction of LTE and a new range of services that will appeal to heavy smartphone users. In addition, price erosion on HSPA devices will also attract feature phones users. Growth rates will slow in the later years of the forecast as penetration plateaus and operators seek out alternative subsidy models.

                                                                                                                          Boosting the MediaTek MT6575 success story with the MT6577 announcement — UPDATED with MT6588/83 coming in Q4 2012 and 8-core MT6599 in 2013

                                                                                                                          Follow-upMediaTek MT6589 quad-core Cortex-A7 SoC with HSPA+ and TD-SCDMA is available for Android smartphones and tablets of Q1 delivery [Dec 12, 2012]
                                                                                                                          The MT6588 was recently renamed MT6589.

                                                                                                                          Update: Sold 70 million in the first three quarters, MediaTek smart chip dominates China [The Liberty Times, Taiwan, Oct 2, 2012] translated by Google/Bing with additional manual edits of my own 6588

                                                                                                                          Qualcomm (Qualcomm) last week launched a lower-priced smart phone chip against rival MediaTek (2,454), but according to the the recent shipment situation MediaTek shipped in China more than 70 million smartphone chips in the first three quarters, 10 million more than Qualcomm there, and become a smart-phone chip superpower in China. Merrill Lynch is bullish on MediaTek outlook because for Qualcomm’s “MSM8225Q” to shake up MediaTek’s leadership still will not be easy.

                                                                                                                          Barclays Capital analyst Lu Hang increased MediaTek smartphone chip shipments in the next two years to 180 million and 290 million, respectively.

                                                                                                                          Chinese mobile phone distributors circle recently the hottest topic number the high pass last week, low-cost quad-core mobile phone chip “MSM8225Q/MSM8625Q “, estimated price falls to $ 25, the market worry renewed price war, the impact MediaTek Maori. However, the latest released Merrill Lynch research report pointed out that the dual-core MediaTek chips and the two Qualcomm quad-core chips compared to each other competitively, plus “8225Q” mass production may be in March next year, by about one quarter behind the MediaTek quad-core chip “MT6589″ (formerly known as MT 6588), the cost of which is expected to be cheaper than the dual-core version, meaning MediaTek is still dominant.

                                                                                                                          Update: Taiwan chip designer MediaTek downgraded amid competitive pressure [WantChinaTimes.com, Oct 2, 2012]

                                                                                                                          … In a report dated Sept. 27, [independent financial services group] CLSA [Asia-Pacific Markets] said the market was optimistic about MediaTek’s gross margin in the second half of 2012 and in 2013 after the company forecasted a gross margin expansion for the third quarter of this year, ending 11 consecutive quarters of contraction.
                                                                                                                          However, MediaTek’s management told the press on Sept. 25 that the company’s quarterly gross margin growth is likely to remain flat in the fourth quarter of this year and will not expand until the second half of 2013, the report said. …
                                                                                                                          … One of the reasons investors were optimistic about MediaTek’s 2013 margin was that they thought its new quad-core MT6588 chip had no competition, as Qualcomm made only very high-end quad-core ICs, [CK] Cheng [a Taipei-based analyst at CLSA] said.
                                                                                                                          But the launch of the MSM8225Q will change that perception, Cheng said, noting that Qualcomm is aiming to release the chip for customer sampling by the end of 2012 and ship in volume in the first quarter of 2013.

                                                                                                                          Although the Qualcomm chip is scheduled to be launched a month or two later than MediaTek’s, Qualcomm’s price is likely to be 5% cheaper because of lower specifications, he said.

                                                                                                                          While MediaTek is believed to have superior products and better low-end smartphone ICs than Qualcomm, price does matter to Chinese handset makers, Cheng added.
                                                                                                                          “This is the main reason why MediaTek has been struggling to lift its average selling price and improve its margin since the third quarter of 2011, although it continues to offer faster processors and multi-core solutions,” he said.
                                                                                                                          “We don’t think MediaTek’s quad-core solution can reverse this trend,” Cheng said.
                                                                                                                          As for Chinese competitors, the increased production of RDA Microelectronics’s connectivity combo chip and Spreadtrum Communications’ 2G smartphone ICs will also weigh further on MediaTek’s margins and average selling price, Cheng said.
                                                                                                                          CLSA raised its forecast for MediaTek’s earnings per share by 3% for 2012 and by 8% for 2013, factoring in the company’s acquisition of its smaller rival MStar Semiconductor, but the brokerage maintained its target price of NT$250 (US$8.53) on the stock.
                                                                                                                          As of 10:26am Monday, MediaTek shares had dropped 4.62% to NT$310 (US$10.59) in Taipei.

                                                                                                                          Regarding actual Cortex-A5 and Krait-related information see on this blog the actual:
                                                                                                                          Core post: Qualcomm decided to compete with the existing Cortex-A5/Krait-based offerings till the end of 2012 [Sept 30, 2012]

                                                                                                                          Update: Mediatek [联发科] target price by Barclays is [NT$] 395 [Taiwan’s Commercial Times News, Sept 26, 2012] as translated by Google/Bing with additional manual edits of my own

                                                                                                                          Lu Hang [陆行] [principal analyst of semiconductors for Asia-Pacific at] Barclays Capital Securities [巴克莱资本证券 Taiwan Limited, 11F, 106 Xin-Yi Road, Sec. 5, Taipei, Taiwan, R.O.C. << from] yesterday (25) revealed, that MediaTek 28 nanometer quad-core A7 smartphone chip MTK6588 launch time is expected to advance to the fourth quarter of this year from the first quarter of next year! Because the price is very competitive, only 18 to 20 dollars, not only quadcore smartphone prices in mainland China will immediately fell to less than 150 dollars following that, the company will also have the opportunity to break into [the market of ] first-tier [i.e. global brand] manufacturers such as Samsung.

                                                                                                                          Lu Hang said that Mediatek’s biggest “backer” [in terms of stock market performance] is expected to be the launch of MT6588 (quad-core A7 [with] TD-SCDMA/WCDMA) and MT6599 (8 core of the ARM [with] LTE/TD-SCDMA/WCDMA) smartphone chips in 4th quarter [of this year] and in the next year, respectively.

                                                                                                                          Lu Hang believes that there are 5 items which will affect the profits of the overall market with MediaTek MT6588:
                                                                                                                          – First, the quad-core smartphone prices in mainland China can immediately be reduced from the current US$ 320 to US$ 150.
                                                                                                                          – Second, we will see in the near future more dual-core 1.7Ghz Krait-based MSM8960A [on one hand], and MSM8974 [on the other], which is same but with quad-core, rather than next to the launch of 8225Q.
                                                                                                                          – Third, in the fourth quarter of next year the estimated proportion of MT6583/MT6588 [shipments] within the total smartphone chip shipments will reach 50%, even the year after the fourth quarter launched MT6599 will also have 50% level, thus raised its shipment forecast value.
                                                                                                                          – Fourth, MT6588 will help to maintain the overall ASP at a level of more than $ 10, and customers can be [serviced via a] unified system design.
                                                                                                                          – Fifth, with the help of 13 million pixels CMOS the sensing power amplifier manufacturers will focus on mainland China and other emerging markets.

                                                                                                                          Important remark from Barclays Hires New Taiwan Investment Banking Head [The Wall Street Journal, Aug 19, 2012]:

                                                                                                                          Barclays … is … an advisor to chip design firm MediaTek Inc. on its proposed acquisition of a minority stake in MStar Semiconductor Inc. worth around $3.8 billion, announced in June, according to Dealogic.

                                                                                                                          Update: MediaTek will produce small amounts of MTK6588 in October [MTK mobile phone network, Sept 10, 2012] as translated by Google/Bing

                                                                                                                          Recently MediaTek message there are two who are more concerned about one thing, according to Taiwan media reports, the fastest possible production of MediaTek quad-core mobile processor chip MTK6588 will start in October this year a small amount, quantity should not be a lot, may be available only to large client proofing purposes. Rumored MediaTek MTK6588 manufacturing cost is even less than dual-core MTK6577. Quad-core MTK6588 is using 28 nm technology process to support tens of millions of pixels of camera, support for TD/WCDMA dual-mode network, support 1080P playback and recording, and is equipped with a PowerVR SGX 544 graphics processor.
                                                                                                                          According to show learned about MTK6588 before, Quad MT6588 or will before the end of trial production, mass production quantities listed in the first quarter of next year.

                                                                                                                          Update: Lenovo Selects MediaTek to Power New LePad Android Tablet [MediaTek press release, Sept 13, 2012], note: “The MT6577 is pin-to-pin compatible with the previously released MT6575” source: the MT6577 launch release

                                                                                                                          MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced that Lenovo has selected its highly integrated Android mobile platform for the new LePad A2107, dual-SIM 3G/HSPA tablet, which is shipping to customers globally.
                                                                                                                          The LePad A2107 provides high-speed cellular data and wireless connectivity and is designed for tablet users who want to be “connected always”. The A2107 uses MediaTek’s proven Android mobile platform consisting of the MT6575 and the MT6620 SoCs. The MediaTek MT6575 incorporates a 1GHz ARM® CortexTM A9 processor, a PowerVR™ Series5 SGX GPU (graphics processing unit) from Imagination Technologies, a 3G/HSPA modem and built‐in support for 3D displays and DTV‐grade multimedia capabilities by leveraging the company’s world‐leading DTV platform technologies. The MT6620 4-in-1 connectivity combo integrates an 802.11n Wi-Fi, Bluetooth 4.0+HS, GPS, and FM transmitter/receiver into a single chip with the world’s smallest footprint and leading low-power consumption. The MediaTek mobile platform is ideally suited to enable mobile device manufacturers like Lenovo, helping them to address the mid and entry‐level tablet market that demands global connectivity for today and tomorrow.
                                                                                                                          “Consumers are increasingly using tablets as a companion device to the PC and mobile phone to access media and information. We forecast that the tablet market will increase from 119 million in 2012 to 494 million by 2016(*),” said Mr. Mark Hung, Research Director at Gartner. “A company that has capabilities and technologies across different multi-screen platforms, from smartphones to DTV, should be well positioned to benefit from participating in the growing tablet market.”
                                                                                                                          *Source: Forecast: Media Tablets by Operating System, Worldwide, 2010-2016, 2Q12 Update, 4 July 2012, by Gartner

                                                                                                                          Update: the best smartphone based on the MediaTek MT6577 both technically and in terms of price is the MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012], which is also the best example of The low priced, Android based smartphones of China will change the global market [this same ‘Experiencing the Cloud blog, Sept 10, 2012]

                                                                                                                          Update: MediaTek MT6577 Performance Review [mediateklab YouTube channel, Sept 3, 2012]

                                                                                                                          Update: New MediaTek chip efficiency: catching up with iPhone4s [MTK mobile phone network, Sept 6, 2012]

                                                                                                                          2012 International Semiconductor exhibition yesterday (5) days in Taipei debut, over the years, the first IC design Forum yesterday morning talk show, presenter mediatek Vice President Lu Guohong home 3G smart mobile phone chip specification level, noted that MediaTek MT6577 of the latest dual-core Smartphone chip efficiency, comparable with iPhone4s. By the show’s brief is not difficult to see, MediaTek, engaged global Smartphone chip leader Qualcomm momentum is high.

                                                                                                                          IPhone4s core processor for Apple A5, the design was based on Cortex-A9 dual core 1GHZ frequency of ARM architecture processors, Lu Guohong comparison list noted that mediatek MT6577 newest 3G Smartphone dual-core chips are used by An Mou with iPhone4s A9 dual core architecture, AP mobile core chips, baseband chip, RF chips and GPU architecture level par with iPhone4s.

                                                                                                                          Update: MediaTek Launches “Cool 3D”: A Comprehensive Suite of 3D Solutions for Smartphone Platforms [MediaTek press release, Sept 11, 2012]

                                                                                                                          MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions announced today the availability of “Cool 3D”, the world’s most complete 3D suite of solutions, for its smartphone platforms. Consumers continue to look for new features in smartphones, such as 3D capabilities, and a report by Global Industry Analysts, Inc, predicts that the global market for 3D enabled smartphones is projected to register 994 million units in annual shipments by the year 2018. Demand for this innovation will be driven by the increased availability of 3D content, such as games, videos and full length movies.
                                                                                                                          The “Cool 3D” suite for MediaTek smartphone platforms includes support for stereo 3D cameras and displays, real-time 2D-to-3D conversion and an optimal 3D user interface that is designed to provide consumers with a stunning 3D experience. Two distinguishing features are “3D Cool Shot” and “3D Cool Show”. MediaTek’s “3D Cool Shot” solution supports a cost-effective 5 MP, dual-lens camera, which achieves 1080P, 24 FPS 3D images, giving users a high-definition visual experience. The MediaTek smartphone platforms are the first of their kind in the industry to integrate the functionality of the dual-lens bridge devices into the main smartphone platform, reducing system cost and saving precious board area. The “3D Cool Show” technology substantially improves the stereo 3D effect with anti-fatigue capabilities, and real-time transformation between 2D/3D modes, allowing for convenient switching between the 2D and 3D displays. These solutions, which leverage MediaTek’s established 3D technologies from the DTV and Digital Home markets, are aimed at creating an optimal stereo 3D display with a custom-tailored 3D interface.
                                                                                                                          “One consequence of the rapid developments in the smartphone market is product homogenization or the ‘all smartphones look alike’ phenomena. Creating product differentiation has become one of the biggest challenges for the mobile phone industry “said Ching-Jiang Hsieh, President of MediaTek. “From Dual-SIM to 3D capabilities, MediaTek has always pushed technological innovation in our platforms, enabling rich and compelling devices and solutions. By working together with our customers, we hope our industry-leading, ”Cool 3D” suite of solutions can lead the wave of 3D smartphone popularity, allowing even more consumers to enjoy an extraordinary 3D experience.”

                                                                                                                          The “Cool 3D” suite of capabilities is already enabled on MediaTek’s shipping MT6575 single-core and MT6577 dual-core platforms. All future launches of MediaTek smartphone solutions will support these 3D capabilities.

                                                                                                                          Updates: Shares of MediaTek jump on positive shipment target revision [Focus Taiwan, Aug 1, 2012]

                                                                                                                          … As of 11:15 a.m., shares of MediaTek had added 6.67 percent to NT$272.00 (US$9.07), off an early high of NT$272.50, with 23.82 million shares changing hands. … MediaTek announced Tuesday at an investor conference that it had raised its target for smartphone chip shipments to 95 million units, from a previous estimate of 75 million units, mainly because of strong demand from China.

                                                                                                                          In the second quarter, the IC designer shipped 21 million smartphone chips, higher than the 18 million to 20 million previously forecast. The company said it would ship at least 30 million smartphone chips in the third quarter.

                                                                                                                          … MediaTek said it expects its gross margin will improve to 41-43 percent for the third quarter from 40.8 percent in the second quarter. …

                                                                                                                          MediaTek hikes 2012 target smartphone chip shipments [DIGITIMES, Aug 1, 2012]

                                                                                                                          … The company expects its MT6575 and MT6577 chips to account for 60% of total smartphone chips sales in the third quarter and 80% in the fourth. …

                                                                                                                          MediaTek eyes Q3 double-digit revenue growth [Taipei Times, Aug 1, 2012]

                                                                                                                          MediaTek Inc (聯發科), the nation’s largest handset chip designer, said yesterday revenue in the third quarter of this year is projected to grow between 13 percent and 18 percent from the second quarter, following the launch of new products and strong demand for smartphone chips.

                                                                                                                          That would mean a quarterly revenue of between NT$26.50 billion (US$883.33 million) and NT$27.70 billion, compared with NT$23.44 billion in the second quarter.

                                                                                                                          MediaTek said second-quarter revenue rose 19.5 percent sequentially and 11.7 percent from the same period last year, primarily driven by the fast-growing smartphone demand in China.

                                                                                                                          However, gross margin for the quarter was 40.8 percent, down 1.3 percent and 5.1 percentage points from the previous quarter and the same period of last year respectively. The company attributed that fall to fierce price competition in the market.

                                                                                                                          Total smartphone chip shipments are likely to reach 95 million units this year, of which between 50 percent and 60 percent will be 3G chips and the remainder 2G chips …

                                                                                                                          MediaTek a product roadmap leaked: Quad-core code-named MT6588 [MTK Smartphones Network (MTK手机网), July 27, 2012]

                                                                                                                          From a recently obtained electronic forum information abroad we see that the MT6585 code communicated earlier for the quad-core MediaTek smartphone chipset is wrong. The true model code is MT6588. It is built on the 28nm process in order achieve higher performance level than the dual-core MT6577 technology.

                                                                                                                          MT6588 has a 4-core CPU [Cortex-A7 (!), see on the second slide below] clocked at 1GHz [1.XGHz rather, see the included slides below], supports dual-channel at maximum 1066Mbps, has an integrated multimode modem for WCDMA [+ it is delivering HSPA+ WCDMA performance (!) vs just HSPA with MT6577/75, see the first slide below] and TD (!), that is it can support both Unicom [latest upgrade to HSPA+ service, see the news in the original post materials much below] and China Mobile 3G network, supports an up to 13 MP camera and 1080P video playback. It finally has a GPU upgrade with SGX544, doubles the resolution to 1280×800 HD level, and has 32KB L1 cache and 1MB L2 secondary cache.

                                                                                                                          Along the MT6588 there is a 28nm dual-core version, MT6583 on the MediaTek 2012 product roadmap. From the chipset parameters it is evident that MT6583 is a scaled down version of MT6588. It has 2 cores less, the camera support is 8MP, the video decoder is of 720P level, and the resolution is down to 854×480.

                                                                                                                          It is understood that MT6588 and MT6583 will be in production in the first quarter of 2013, early next year the fastest.

                                                                                                                          The MediaTek product roadmap

                                                                                                                          MTK MT6588 chip Introduction

                                                                                                                          Note: No search reveals the source for the above information.

                                                                                                                          MediaTek to launch quad-core smartphone solutions in 1Q13, says paper [DIGITIMES, Aug 6, 2012]

                                                                                                                          MediaTek is expected to launch its first quad-core smartphone solution, the MT6588, in the first quarter of 2013, according to a Chinese-language Liberty Times report. The MT6588 features a quad-core 1.5GHz or 1.7GHzCortex-A7 CPU, supporting WCDMA and TD-SCDMA technologies.

                                                                                                                          The MT6588, which features a 13-megapixel camera, also supports 1080p video playback and a display resolution of 1280 by 800 pixels. The chip will be built using a 28nm process, the paper said.

                                                                                                                          Additionally, MediaTek will also roll out a 28nm dual-core solution, the MT6583, during the same quarter. While the dual-core CPU of the MT6853 will also run at 1.5GHz or 1.7GHz, the chip will support a resolution of 854 by 480 pixels targeting a segment different from that of the MT6588, the paper indicated.

                                                                                                                          End of updates

                                                                                                                          The original content:

                                                                                                                          • About the just four months old MT6575-based market
                                                                                                                          • MediaTek provided general MT6575 information
                                                                                                                          • Some history leading to MT6575
                                                                                                                          • Turmoil on the H1CY12 market in China:
                                                                                                                            International and local brands, as well as white-box vendors are repositioning for the most lucrative CNY500 (US$79) to CNY1,000 (US$157) smartphone market of H2CY12 and on

                                                                                                                          Note: the PowerVR SGX Series 5 GPU used for MT6577 is said to be by 3d parties SGX531, See: SoC list on Imagineers blog, or Lenovo (indirect).

                                                                                                                          Greater China mobile solutions – From silicon to software [DIGITIMES Research, June 8, 2012]

                                                                                                                          Abstract

                                                                                                                          The China mobile market has developed rapidly, with smartphone shipments reaching 69 million units in 2011 and tablet shipments soaring from around one million in 2010 to some 10 million in 2011, and potentially exceeding 20 million units in 2012. As consumer spending power increases, local vendors are focusing on more market tiers and makers have begun to make a play for the high-end market.

                                                                                                                          Updates: China market: Nearly 195 million handsets shipped in 1H12 [DIGITIMES, July 10, 2012]

                                                                                                                          There were 194.913 million handsets shipped in the China market during the first half of 2012, consisting of 106.874 million (54.83%) 3G handsets in 801 models and 88.039 million (45.17%) 2G handsets in 1,298 models, according to statistics published by the China Academy of Telecommunication Research (CATR) under the Ministry of Industry and Information Technology (MIIT).

                                                                                                                          Of the shipment volume, 94.855 million or 48.67% were smartphones in 822 models of which 801 models or 97.44% were based on Android. China-based vendors accounted for 75.16% of the half-year shipment volume, and international vendors 24.84%.

                                                                                                                          The monthly shipment volume of smartphones exceeded that of feature phones for the first time in April 2012, with the corresponding proportion increasing to 56.9% in June.

                                                                                                                          China market: Breakdown of total handset shipment volume, 1H12
                                                                                                                          Generation

                                                                                                                          Technology standard

                                                                                                                          Number of models

                                                                                                                          Shipment volume (m handsets)

                                                                                                                          3G

                                                                                                                          WCDMA (China Unicom)

                                                                                                                          476

                                                                                                                          53.099

                                                                                                                          CDMA2000 (China Telecom)

                                                                                                                          174

                                                                                                                          28.197

                                                                                                                          TD-SCDMA (China Mobile)

                                                                                                                          151

                                                                                                                          25.578

                                                                                                                          2G

                                                                                                                          GSM

                                                                                                                          1,272

                                                                                                                          81.915

                                                                                                                          CDMA1x

                                                                                                                          26

                                                                                                                          6.076

                                                                                                                          Source: CATR under MIIT, compiled by Digitimes,  July 2012

                                                                                                                          China smartphone market 2012: Trends and analysis [DIGITIMES Research, July 3, 2012]

                                                                                                                          Abstract

                                                                                                                          The China handset market has exhibited strong growth, with the total number of mobile users in the country reaching 980 million people according to figures from the Ministry of Industry and Information Technology (MIIT), an increase of 130 million over the 2010 figure. Digitimes Research estimates that mobile user numbers could top 1.13 billion in 2012.

                                                                                                                          Digitimes Research estimates that the China handset market reached some 390 million units in 2011, representing 16% growth on 2010; the market is likely to grow to 430 million units in 2012, representing further growth of 9%. Thanks to the expansion of 3G service coverage and further falls in budget smartphone prices, the share of the handset market accounted for by smartphones is likely to reach 32% or around 143 million units, 70% of which will be Android handsets.

                                                                                                                          Digitimes Research believes that market share rankings for the China smartphone market will change significantly during 2012. Samsung and Apple will take the top two places, while the big four China-based brandsHuawei, ZTE, Lenovo and Coolpad – will take third to sixth places, while Nokia will drop to seventh; these seven firms will collectively account for 85% of shipments.

                                                                                                                          In other words, the many other brands hoping to seize a share of the market will essentially be confined to competing for a potential market of just 15% of overall shipments or around 21 million handsets. Given such a situation, Digitimes Research projects that many of China’s best known smaller brands such as Xiaomi, TCL, Gionee, Tianyu, Oppo and BBK will see shipments of no more than a few million handsets.

                                                                                                                          End of updates

                                                                                                                          China-based white-box vendors expected to ship 200 million smartphones [DIGITIMES, April 17, 2012]
                                                                                                                          China-based white-box vendors, mainly due to the availability of inexpensive new chip solutions, have been increasing the production of smartphones, with the total shipment volume expected to reach 200 million units in 2012, according to industry sources in Taiwan.
                                                                                                                          Taiwan-based MediaTek is offering the makers its MT6575 a chip solution for use in entry-level smartphones in the first quarter of 2012 and will offer the MT6577, a solution for high-level smartphones, in the middle of the third quarter of 2012, the sources indicated. MediaTek will ship 50-70 million chips to China-based white-box vendors to account for nearly 30% of smartphones to be shipped by these vendors in 2012.
                                                                                                                          In addition, Qualcomm has strengthened its marketing in the China market by offering turn-key solutions to white-box vendors, with prices for a chips lowered to US$6, the sources cited eMedia Asia as indicating.
                                                                                                                          China-based white-box vendors sell more than 60% of their smartphone output to overseas markets, including 2.5G models for markets where deployment of 3G networks is not mature yet, the sources indicated. White-box vendors are expected to see larger market demand if their production costs for entry-, medium- and high-level smartphones drop to US$60, US$85 and US$130 respectively, the sources pointed out.

                                                                                                                          Huawei adopts MediaTek dual-core chip for smartphones, says report [DIGITIMES, June 27, 2011]

                                                                                                                          MediaTek’s new MT6577, which uses a dual-core 1.2GHz Cortex A9 CPU, has been adopted by China-based Huawei for as many as four of its upcoming smartphone devices, according to a Chinese-languageCommercial Timesreport.

                                                                                                                          The new MediaTek MT6577 solution is scheduled to enter volume production starting July, the Chinese-language Economic Daily News (EDN)reported last week (June 22). The chip is built using 40nm process technology.

                                                                                                                          MediaTek previously upward revised the prediction for its total smartphone-IC shipments in 2012. The firm now expects to ship about 75 million smartphone chips this year, compared to the 50 million estimated initially.

                                                                                                                          From:

                                                                                                                          MediaTek Launches Dual-Core MT6577 Smartphone Platform [MediaTek press release, June 27, 2012]

                                                                                                                          MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced the availability of the MT6577, a dual-core platform developed specifically for sub-$200 smartphones, the fastest growing segment of the global smartphone market. The MediaTek MT6577 features a dual 1GHz Cortex™-A9 application processor from ARM, a PowerVR™ Series5 SGX GPU (graphics processing unit) from Imagination Technologies, MediaTek’s proven 3G/HSPA modem, and runs the latest Android 4.0 “Ice Cream Sandwich” operating system. By integrating a dual-core application processor architecture widely deployed in the majority of today’s premium smartphones, the MT6577 boosts application and browser performance by up to 40% compared to single-core platforms, bringing unprecedented levels of user experience to mid- and entry-level smartphones.

                                                                                                                          “MediaTek’s existing HSPA smartphone platforms – the MT6573 and MT6575 – have been extremely well-received by customers and consumers worldwide, and are currently shipping with major international brands such as Lenovo, TCL/Alcatel, and other top tier Chinese OEMs,”said Ching-Jiang Hsieh, President of MediaTek. “The MT6577 adds the next level of performance and enhanced user experience to the MediaTek smartphone family, delivering enhanced user interactivity, mobile connectivity and rich multi-media experience previously only available on high-end devices. Consumers everywhere will now benefit from the affordable, high-performance devices enabled by the MT6577. MediaTek is proud to be in the vanguard of companies enabling the democratization of smartphones.”

                                                                                                                          “Dual-core processors account for over 20% of current smartphone processor shipments, with these devices being mostly in the premium segment and addressed by standalone application processors. MediaTek’s new MT6577, with integrated dual-core processors and 3G/HSPA modem is well suited to bringing similar user experiences to the fast-growing mid and entry smartphone segment which is forecast to grow from under 200 Mu in 2012 to over 500 Mu in 2016” said Stuart Robinson, Director, Handset Component Technologies service at Strategy Analytics.

                                                                                                                          The MT6577 is designed to deliver rich multimedia experiences, with an 8MP camera, support for up-to high-definition 1080p video playback and the ability to support high-resolution displays up to HD720 (1280×720) resolution. The platform also pre-integrates MediaTek’s leading 4-in-1 connectivity combo that provides support for dual-band 802.11n Wi-Fi, BT4.0, GPS and FM. The MT6577 is pin-to-pin compatible with the previously released MT6575, allowing handset manufacturers to easily produce multiple tiers of devices leveraging a single PCBA hardware development effort.

                                                                                                                          The MT6577 dual-core platform is currently being incorporated into smartphone devices by MediaTek’s leading global customers, and the first smartphone models based on this new chipset are expected to ship commercially in Q3 2012.

                                                                                                                          MediaTek MT6577 [MediaTek100 YouTube channel, July 19, 2012]

                                                                                                                          MediaTek expects increase in smartphone chip sales [Taipei Times, June 14, 2012]

                                                                                                                          MediaTek Inc (聯發科) chairman Tsai Ming-kai (蔡明介) said yesterday that he still expects an increase in demand for smartphone chips in the second half of this year, despite a slowing global economy.

                                                                                                                          Last year, faced with competition that was fiercer than ever, MediaTek posted NT$13.62 billion (US$454 million) in net profit, or NT$12.35 earnings per share (EPS), down sharply from the NT$30.94 billion in net profit, or NT$28.44 EPS recorded in 2010.

                                                                                                                          Tsai said the worst phase was almost over for the IC designer and the company was gearing up to broaden its product portfolio and win orders to strengthen its profitability.

                                                                                                                          On the back of robust demand for smartphones, MediaTek has forecast smartphone chip shipments in the second quarter would range between 18 million and 20 million units, up sharply from the 10 million recorded in the first quarter.

                                                                                                                          For all of this year, the IC designer anticipates smartphone chip shipments to touch 75 million units from rising demand from China and other emerging markets.

                                                                                                                          MediaTek president Hsieh Ching-jiang (謝清江) said at the shareholders’ meeting that the company would not focus just on the Chinese market, but also target global demand, while operating a total of 23 offices worldwide.


                                                                                                                          About the just four months old MT6575-based market

                                                                                                                          ZOPO ZP200 3D Movie Playing [AndroidSale YouTube channel, March 22, 2012]

                                                                                                                          http://android-sale.com/zopo-zp200-3d-phone.html | Zopo zp200 is the cheapest glasses-free 3D Android smartphone, with 1GHz processor, 1GB RAM, 8MP camera.

                                                                                                                          image
                                                                                                                          Source: MTK6575 Cpu Andorid >> on fastcardtech.com

                                                                                                                          Note that even for global wholesale there are much more products of the above kind, as you could see from the table below (the ones which are also on the above diagram are highlighted in yellow). Click here for a PDF version in case you want to click on the links:

                                                                                                                          image

                                                                                                                          There are a couple of recent Chinese startups capitalising on the MT6575 opportunity. The most successfull among them is probably ZOPO Mobile Communications-equipment Ltd. in Shenzhen, China, introducing itself as:

                                                                                                                          ZOPO Company is founded in 2012, which engages in research, development, produce, marketing and service of mobile intelligent terminal products. The ZOPO ZP200 model as” The China‘s first Glasses-Free 3D dual sim smart mobile phone ” has been a hot Star in China mainland.

                                                                                                                          Zopo ZP100 MT6575 4.3″ qHD $174 street price [ARMdevices.net YouTube channel, April 9, 2012]

                                                                                                                          The MediaTek MT6575 is out of the gate. ARM Cortex-A9 invades the low cost Shenzhen Smartphones market. http://www.zopomobile.com opened their first store on the Huaqiangbei Shenzhen Smartphones market street, to sell their new ZP100 smartphone at 1099rmb (USD$174). It’s got an awesome 4.3″ qHD 960×540 LCD capacitive screen made by Sharp, a 5 megapixel auto-focus camera/camcorder made by Sony, the MT6575 makes it support Dual-sim WCDMA/3G/Data and GPRS/Voice at the same time. And it’s got a removable 1650mAh battery, MicroSD slot and Micro-USB that does not double as an MHL output. Of course I bought one because I want to test the MT6575 processor. Let me know in the comments what you would like to see me test on this and other upcoming MT6575 Smartphones.

                                                                                                                          I’m back in Shenzhen! Here getting ICS installed on my Zopo ZP100 MT6575 [ARMdevices.net YouTube channel, April 9, 2012]

                                                                                                                          As I am going to be video-blogging the latest advances in Linux on ARM at the Linaro Connect Hong Kong conference next week, I just landed a few days early so that I can now video-blog again video-blog the latest news out of Shenzhen. It’s appropriate for me to video-blog the latest news in Shenzhen monthly don’t you think? In this video, I got the Zopo staff at the Zopo store on Hua Qiang Bei Shenzhen to update the firmware on my Zopo ZP100 MT6575 ARM Cortex-A9 based phone because I had a hard time figuring out how to do it looking at the Chinese-only http://bbs.zopomobile.com ICS seems to be extremely smooth on the MediaTek MT6575, I’m going to ask Zopo in the days to come what they expect to do about reaching the European, US markets and worldwide with this phone. Check back in the days to come for the latest news from Shenzhen as I’m hearing about an upcoming Dual-core MediaTek MT6577 to be in an upcoming Huawei 4.5″ low cost super phone, the i.MX6 is being worked on by Shenzhen based PCB design houses, Rockchip is very close to take large market share for tablets out of Shenzhen with their new Dual-core RK3066 platform. Check back onhttp://ARMdevices.net for a lot of new videos about those. Let me know in the comments what you would like me to film and do in Shenzhen. I have some big plans to finally do something about group buys (through reliable and trusted Shenzhen based device makers and sellers) and I plan to launch some new special features here on http://ARMdevices.net during the next few days so check

                                                                                                                          The author of the above videos (Nicolas Charbonnier, aka Charbax, see also a recent interview with him about his videoblogging) went through quite a tour about the new MT6575-based entries in the first half of April:
                                                                                                                          $158 5″ WVGA MT6575 Cortex-A9 Smartphone presented by www.yooe.com.cn
                                                                                                                          Zhenai A900 waterproof MT6575 smartphone
                                                                                                                          $79 3.5″ MT6575 Orient Smart Development Ltd
                                                                                                                          MT6575 phone shown by Quality Industrial Co Ltd
                                                                                                                          $142 Galaxy Nexus clone, runs ICS on MT6575, with 4.65″ LCD
                                                                                                                          Hyundai Brilliant H950, 5.2″ MT6575 phone runs Ice Cream Sandwich at the HKTDC Electronics Fair
                                                                                                                          $140 5.2″ MT6575 Android phone by Daza Electronics at the HKTDC Electronics Fair
                                                                                                                          ICS on 5″ MediaTek MT6575 Dolphin A80 phone [from Yooe] (note that this is represented on both the above diagram and the table)
                                                                                                                          Shenzhen Factory Entrance (note that this is also where Yooe is manufacturing, quite likely)
                                                                                                                          The Shenzhen Speakers Factory (the same factory was manufacturing speakers during the visit)
                                                                                                                          Then he returned in the end of May with these video reports:
                                                                                                                          Yooe MT6575 phone now selling
                                                                                                                          MT6575 Cutepad 5″ phone

                                                                                                                          He was showing off some of the latest gadgets that he found in Shenzhen in this video as well: Interview with Nicolas Charbonnier at Linaro Connect, Hong Kong [jasonderose YouTube channel, June 4, 2012]


                                                                                                                          MediaTek provided general MT6575 information

                                                                                                                          MT6575 [MediaTek product page, March 29, 2012]

                                                                                                                          Dual-SIM smartphone platform for the mainstream mid and entry level market

                                                                                                                          MT6575 is MediaTek’s new dual-SIM smartphone platform for the mainstream mid- and entry-level smartphone markets. Enabling browsing, gaming and multimedia features that will delight consumers, support the latest Android releases and the industry’s best dual-SIM performance for voice and data calls, the MT6575 is MediaTek’s most advanced and competitive smartphone platform to date.The MT6575 combines a software and hardware reference design solution to enable dramatically faster time to market at a highly competitive price point. The MT6575 is set to redefine the performance of mainstream smartphones.

                                                                                                                          Features

                                                                                                                          • 1GHz ARM CortexTM-A9 CPU allows for outstanding web browsing and application performance
                                                                                                                          • High-performance 3D gaming and UIfeatures enabled by PowerVRTM SGX Series5 GPU
                                                                                                                          • High-definition 720p videoplayback and record
                                                                                                                          • Per-packet Rx antenna diversity
                                                                                                                          • 8 MP camerawith enhanced image processing capabilities
                                                                                                                          • Up to high-resolution qHD (960×540) displays
                                                                                                                          • Supports both portrait and landscape display modes by built-in dedicated HW
                                                                                                                          • Features stereo 3D video playback and advanced 2D-to-3D image/video conversion
                                                                                                                          • No lost calls on either SIM – even with active data transmission on either SIM
                                                                                                                          • Better Power Efficiency – Up to 500 hours of standby and over 8 hours of talk-time on 3G, 45 hours of audio playback and 6 hours of 3D gaming.

                                                                                                                          MediaTek – MT6575 [a featured product page, July 5, 2012]

                                                                                                                          Redefining performance of mid/entry smartphones in 2012

                                                                                                                          Overview

                                                                                                                          MT6575 is MediaTek’s new dual-SIM smartphone platform for the mainstream mid- and entry-level smartphone markets. Enabling browsing, gaming and multimedia features that will delight consumers, support the latest Android releases and the industry’s best dual-SIM performance for voice and data calls, MT6575 is MediaTek’s most advanced and competitive smartphone platform to date.

                                                                                                                          Key Features

                                                                                                                          The MT6575 platform offers a 1GHz ARM® CortexTM-A9 processer for outstanding web browsing and application performance, a proven 3G/HSPA modem and runs the latest “Ice-Cream Sandwich” Android 4.0 release. Other key features include:

                                                                                                                          ♦  Superior CPU, GPU, and System Performance
                                                                                                                          – High-performance 3D gaming and UI features enabled by PowerVRTM SGX Series5 GPU
                                                                                                                          ♦  Richest Multimedia Features
                                                                                                                          – High-definition 720p video playback and record
                                                                                                                          – 8 MP camera with enhanced image processing capabilities
                                                                                                                          ♦  World-First Integration Of Stereo 3D Display Controller And 3D Video Processing
                                                                                                                          – Features stereo 3D video playback and advanced 2D-to-3D image/video conversion
                                                                                                                          ♦  Best Display Picture Quality
                                                                                                                          – Brings the same level of LCD-TV picture quality to mobile devices
                                                                                                                          ♦  Leading Dual-SIM Features and Performance
                                                                                                                          – No lost calls on either SIM
                                                                                                                          ♦  Lowest BOM costs
                                                                                                                          – Highly integrated platform includes the world’s smallest 4-in-1 connectivity combo (MT6620) that allows for small size and lower BOM costs
                                                                                                                          ♦  Better Power Efficiency
                                                                                                                          – Up to 500 hours of standby and over 8 hours of talk-time on 3G
                                                                                                                          – Up to 45 hours of audio playback and 6 hours of 3D gaming
                                                                                                                          The MT6575 is currently being incorporated into the latest smartphone offerings by many of MediaTek’s leading customers and the first smartphone models based on this new platform have already hit the market in the first quarter of 2012.

                                                                                                                          MediaTek – MT6620 [a featured product page, Sept 21, 2011]

                                                                                                                          Highly Integrated 4-in-1 WLAN/Bluetooth/GPS/FM Combo Solution

                                                                                                                          Overview

                                                                                                                          MediaTek MT6620 integrates WLAN, Bluetooth, GNSS and FM, to provide the best performance and most convenient single chip. MT6620 implements advanced and sophisticated Radio Coexistence algorithms and hardware mechanisms. MT6620 also supports a single shared antenna (2.4 GHz antenna for Bluetooth and WLAN, 5 GHz for WLAN and 1.575 GHz for GPS).

                                                                                                                          Enhanced overall quality for simultaneous voice, data and audio/video transmission on mobile phone and tablet PC can be achieved. The small size with low power consumption reduces PCB layout area. The software package “Symphony” comes with many advanced features.

                                                                                                                          Key Features

                                                                                                                          • Low power, small size and high performance
                                                                                                                          • WLAN/Bluetooth/GPS/FM solution WLAN 802.11 a/b/g/n dual band single stream (20/40MHz) with dual band LNA and 2.4GHz PA integration
                                                                                                                          • Bluetooth 3.0+HS and V4.0 Low Energy support with LNA and PA integration
                                                                                                                          • Support GPS/Galileo/QZSS/SBAS with -165dBm tracking sensitivity FM Tx/Rx with RDS/RBDS support
                                                                                                                          • Support Wi-Fi Direct and WAPI hardware encryption
                                                                                                                          • Support FM over Bluetooth
                                                                                                                          • PLC (Packet Loss Concealment) technology for superior audio quality
                                                                                                                          • Advanced AlwaysLocateTM location awareness technology with ultra low power consumption
                                                                                                                          • Flexible host interfaces support include single SDIO interface for all wireless functions

                                                                                                                          MediaTek Launches MT6575 Android Platform [MediaTek press release, Feb 13, 2012]

                                                                                                                          MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced the availability of the MT6575, its 3rd generation platform for mid and entry‐level Android smartphones. The MT6575 platform offers a 1GHz ARM® CortexTM‐A9 processer, a proven 3G/HSPA modem and runs the latest “Ice‐Cream Sandwich” Android 4.0 release.

                                                                                                                          “We expect significant growth in entry and mid‐level smartphones, with wholesale prices under US$190, over the coming years. We forecast that this segment will almost triple in size from 191 million shipments in 2012 to 551 million by 2016. At that time, we also expect approximately 75% of those entry and mid‐level smartphones to ship to emerging markets” said Neil Mawston, Executive Director, Global Wireless Practice, at Strategy Analytics. The MediaTek MT6575 platform is ideally suited to cater to a wide range of smartphone devices that target this growing segment in multiple markets around the world.

                                                                                                                          “Leveraging the energy‐efficient, high‐performance Cortex‐A9 processor in Android smartphone applications is an extremely compelling proposition and a great proof point for the scalability of the ARM architecture. During 2011 the Cortex‐A9 processor has powered many of the most up‐to‐date and highest performance smartphones. The proliferation of Cortex‐A Series processors into lower cost, mainstream mobile devices will deliver a significant uplift in the user experience,” said Laurence Bryant, Director of Mobile, ARM.

                                                                                                                          For mid‐range smartphones, the MT6575 platform supports 720p high‐definition video playback and recording with an 8MP camera and qHD (960×540) high‐resolution displays via a PowerVRTM SGX Series5 GPU (graphics processing unit) from Imagination Technologies. In industry‐standard benchmark testing, the MT6575 offered over 35% improvement for browser applications and over 20% improvement in graphics capabilities for gaming when compared to competitors’ best offerings in these segments.

                                                                                                                          Additionally, the MT6575 platform provides built‐in support for advanced features such as integrated capabilities to drive 3D displays and proprietary algorithms for mobile display picture processing. In sum, the MT6575 provides DTV‐grade picture quality on a smartphone by leveraging MediaTek’s proven technology as a world‐leading DTV platform provider.

                                                                                                                          The MT6575 platform also supports entry‐level smartphones with smaller display sizes, lower resolution, less memory and reduced multimedia requirements. In addition, the MT6575 boasts the world’s lowest power consumption and most comprehensive integration of hot swap dual‐SIM capability compatible with the Android platform. With the MT6575 dual‐SIM solution, consumers will no longer have to worry about dropped calls while active data transfer is happening on either SIM card, and will experience automatic resumption of data exchange once calls on the other SIM card have ended, in addition, with the hot swap feature enabled, the SIM card can be inserted without switching off the mobile.

                                                                                                                          The 3G/HSPA modem integrated in the MT6575 platform has been qualified at major 3G operators world‐wide.

                                                                                                                          The MT6575, delivered in 40nm CMOS technology, builds on the proven track record of the 2nd generation MT6573 platform – i.e., the platform that powers the Lenovo A60, China Unicom’s top selling handset in the sub‐RMB 1000 (approx. $160 USD) smartphone category.

                                                                                                                          “We are very excited by the prospects of the MT6575 platform. It combines MediaTek’s innovative chipset technology with our proven reference design and complete software solution model. We believe this platform is ideally suited to enable our customers to address mid and entry‐level smartphone cost and performance needs on a global basis – today and tomorrow,” said Ching‐Jiang Hsieh, President of MediaTek.

                                                                                                                          The MT6575 is currently being incorporated into the latest smartphone offerings by many of MediaTek’s leading customers and the first smartphone models based on this new platform will hit the market in the first quarter of 2012.

                                                                                                                          MediaTek’s Full Line of 3G Platforms Aims to Address Mid to Entry-Level Smartphone Market [MediaTek press release, Feb 27, 2012]

                                                                                                                          MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions today announced the availability of the MT6515, its next generation TD smartphone solution for China sub-RMB 1000 (approx. $160 USD) smartphone market. The MT6515 TD smartphone platform solution integrates a powerful 1GHz ARM CortexTM-A9 processor, 3D hardware, and runs the latest “Ice-Cream Sandwich” Android 4.0 release. MediaTek’s latest foray into the 3G smartphone market enables high system performance with low power consumption and high cost-performance ratio that raises the bar for what consumers will come to expect from a TD-SCDMA smartphone experience.

                                                                                                                          According to a recent report released by the market research firm, Strategy Analytics, in the 3rd quarter of 2011, China overtook the US as the world’s biggest smartphone market. Sub-RMB 1000 smartphones were one the fastest growing segments of this market, due in large part to multiple purchases of these models by China’s three major operators in response to consumer needs. As a result, China has seen a sharp rise in smartphone sales starting in the beginning of 2011. MediaTek, with its years of experience serving the industry, attention to continuous innovation, and recent investments in the arena of 3G technologies, has been perfectly poised to meet the growing needs of this new market. With its cost effective, yet high performance smartphone platforms, MediaTek, along with industry partners (i.e. mobile device manufactures and operators), has emerged as a leader in the recent explosion of popularity of mid and entry-level smartphones.

                                                                                                                          As a member of China’s TD Industry Alliance (TDiA), MediaTek has invested heavily in the R&D of TD chipsets following the initial release of the TD-SCDMA standard. MediaTek’s signature high integration, yet low power consumption platforms have been introduced into TD operators’ handset customization strategies, and MediaTek currently offers a TD mobile device platform series uniquely customized to meet the needs of the Chinese market. As such, it is little surprise that among the mobile devices included in China Mobile’s multiple terminal procurement lists, one finds a variety of end user products that run on MediaTek-driven TD platforms.

                                                                                                                          Today, MediaTek announced the availability of the MT6515, its next generation TD smartphone platform for the sub-RMB 1000 smartphone market. The platform offers a powerful 1GHz ARM CortexTM-A9 processor, 3D hardware, and runs the latest “Ice-Cream Sandwich” Android 4.0 release. Multi-media applications and Internet speed have also been optimized. Additionally, the MT6515 TD-SCDMA offers a complete China Mobile 3G package, thus helping increase the speed in which manufacturers can get their products to end-users.

                                                                                                                          In the field of WCDMA and 3rd generation wireless standards, MediaTek has continued to build upon its proven track record of offering complete mobile device solutions. Worthy of note is the MT6573, MediaTek’s 3.75G smartphone platform released last year. This platform powered the Lenovo A60, China Unicom’s top selling handset in the sub-RMB 1000 smartphone category, and an important factor in the uptick of popularity in phones within this market segment.

                                                                                                                          Building on the success of the MT6573, MediaTek has released the MT6575, which is designed to run on the latest Android driven platforms. The MT6575 offers a 1GHz ARM® CortexTM-A9 processor and runs the latest “Ice-Cream Sandwich” Android 4.0 release. The platform supports dual-SIM solutions, and its web performance, power consumption rates, and multimedia features all meet or exceed industry-leading benchmarks, thus guaranteeing that the MT6575 will deliver a significant uplift in the smoothness of user experience. The MT6575 is currently being incorporated into the latest smartphone offerings by many of MediaTek’s leading customers and the first smartphone models based on this new platform will hit the market at the end of this month.

                                                                                                                          “Using innovative products to help our customers accurately reflect the needs of the market has always been one of MediaTek’s greatest strengths, and we have continued with this tradition of excellence as we expand into the growing smartphone market. MediaTek’s innovative chipset technology, with our proven reference design and complete software solution models, will ensure that our customers find a place in the growing mid and entry-level smartphone market of tomorrow where, along with power and functionality, cost effectiveness has become a must-have feature,” said Ching-Jiang Hsieh, President of MediaTek.

                                                                                                                          MediaTek Announces World’s Smallest 4-in-1 Combo Chip Wi-Fi/Bluetooth/GPS/FM Solution [press release, July 21, 2011]

                                                                                                                          MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced its most advanced wireless combo chip designed to enrich multimedia experience with small footprint and long battery life for smartphones, tablets and portable devices. The MediaTek MT6620 integrates 802.11n Wi-Fi, Bluetooth 4.0+HS, GPS, and FM transmitter/receiver on a single chip with superior size and power benefits, making it the best solution for smartphones, tablets, and portable devices.

                                                                                                                          Bringing connectivity features to mainstream products such as smartphones, tablets, portable media players (PMPs), gaming devices, and personal navigation devices (PNDs), the MediaTek MT6620 integrates Wi-Fi, Bluetooth, GPS, and FM, to provide superior performance and rich features. The MT6620 implements advanced and sophisticated radio coexistence algorithms and hardware mechanisms to enhanced overall quality for simultaneous voice, data, and audio/video transmissions. Its small size significantly reduces PCB layout area and simplifies design efforts. In addition, the MediaTek Symphony™ software package supports all advanced wireless features on the Android operation system. BlueAngel™ Bluetooth software currently can support up to 15 profiles to fulfill most user scenario and bring customer product differentiation.

                                                                                                                          The MT6620 supports all the leading standards: dual band 2.4GHz and 5GHz 802.11n Wi-Fi with WiFi Direct and Hotspot, Bluetooth 4.0+HS for simultaneous dual mode Bluetooth BR/EDR/HS and Bluetooth Low Energy (BLE) operations, GPS with Galileo/SBAS/QZSS and patent pending AlwaysLocate™ technology, FM radio with both transmitter and receiver, making the MT6620 ideal solution for portable devices that require superior performance and long battery life. The MT6620 passes 802.11n WiFi certificate including WPS2.0, WAPI and Bluetooth 4.0+HS on both the controller and MediaTek BlueAngle™ host software.

                                                                                                                          SR Tsai, General Manager of the Wireless Connectivity Business Unit at MediaTek said, “MediaTek is one of few in the industry to offer 4-in-1 SoC solution for a wide range of mobile applications. As a result of this attention to mobile device manufacturers’ needs, the MT6620 was designed to meet strict requirements, such as low power modes to conserve battery life, a reduced footprint to fit into small, sleek handset designs, and low cost to enable mass market mobile Wi-Fi enabled handsets. We believe that the MT6620 is optimized for mobile devices at the hardware, firmware, and driver levels to speed time to market of innovative designs.”

                                                                                                                          The MT6620 has entered mass production and is shipping to lead customers in sizable quantities now.

                                                                                                                          MT6620 Product Highlights:
                                                                                                                          – Low power, small size and high performance Wi-Fi/Bluetooth/GPS/FM solution
                                                                                                                          – Wi-Fi 802.11 a/b/g/n dual band single stream (20/40MHz) with dual band LNA and 2.4GHz PA integration
                                                                                                                          – Bluetooth 4.0+HS support with PA integration
                                                                                                                          – Supports GPS/Galileo/QZSS/SBAS with -165dBm tracking sensitivity
                                                                                                                          – FM Tx/Rx with RDS/RBDS support
                                                                                                                          – Supports Wi-Fi Direct and WAPI hardware encryption
                                                                                                                          – Supports FM over Bluetooth
                                                                                                                          – PLC (Packet Loss Concealment) technology for superior audio quality
                                                                                                                          – Advanced AlwaysLocateTM location awareness technology with ultra-low power consumption
                                                                                                                          – Flexible host interfaces including single SDIO for all wireless functions


                                                                                                                          Some history leading to MT6575

                                                                                                                          Stephen Elop’s (Nokia CEO) “Burning Platform” memo leaked by Engadget [Feb 8, 2011]:

                                                                                                                          In 2008, MediaTek supplied complete reference designs for phone chipsets, which enabled manufacturers in the Shenzhen region of China to produce phones at an unbelievable pace. By some accounts, this ecosystem now produces more than one third of the phones sold globally – taking share from us in emerging markets.

                                                                                                                          White-box handset makers gearing up smartphone and 3G handset production, MediaTek to benefit [DIGITIMES, Dec 3, 2010]:

                                                                                                                          White-box handset makers in China are gearing up their production of in-house designed smartphones and 3G handsets, a trend which will benefit Taiwan-based IC design house MediaTek. China’s white-box handset industry in 2010, has begun to place more emphasis on upgrading specifications and added value to enter the high-end segment, and has allocated more resources on development of intellectual property.

                                                                                                                          Even the China government has voiced its support for the white-box industry. Yang Xueshan, Deputy Minister of the Ministry of Industry and Information Technology (MIIT), recently said that the government will support the white-box business model as long as there is no infringement of IP.

                                                                                                                          Yang pointed out that from imitation to innovation is a process white-box handset makers have to go through, citing China-based telecom equipment maker Huawei Technologies as a success story. Huawei’s foray into the handset sector began with low-cost products and the company now has research and development capability, he said.

                                                                                                                          Supporting the white-box business model, given that no patents are infringed, is a good way to protect intellectual property rights as well as provide the most cost-effective products to consumers, Yang added.

                                                                                                                          More information: MediaTek as the catalyst of the white-board ecosystem
                                                                                                                          section within Be aware of ZTE et al. and white-box (Shanzhai) vendors: Wake up call now for Nokia, soon for Microsoft, Intel, RIM and even Apple! [Experiencing the Cloud, Feb 21, 2011]

                                                                                                                          Look at the MTK History :MTK6575 Heading Toward 1Ghz smartphone for below $200? [Lady Panda, April 14, 2012]

                                                                                                                          Let’s look at the MTK History:

                                                                                                                          They first created chipsets for general phone such as MT6225, MT6235 based on their own MTK RTOS. MTK RTOS is known for fast, features rich and very customizable interface with most features support such as Dual SIM Dual Standby, Dual Camera(Front/Rear), ,MicroSD-HC up to 16-32GB, WiFi, Bluetooth (A2DP/Stereo and most other profiles), Very good J2ME support, Analog/digital DVB, FM Radio. A lot of features rich and very affordable handsets become to appear on marketfor prices below $100.

                                                                                                                          Then they were one of the first to create a dual SIM WCDMA chipset MT6268 which had even better J2ME support and also 3g features such as WCDMA data and 3G Video calls support. A lot of Dual SIM 3G handsets started to appear for about $150. They all were fully unlocked by default and without any contracts. It provided handsets with a lot of features for a very low price.

                                                                                                                          Then back in 2009 they have decided to enter the smartphones market with the new MT6516 chipset which provided a solution for fully featured yet low price Windows Mobile 6.5 and Android 2.2. handset with a price tag of below $150 while maintaing the popular Dual SIM Dual Standby Quad Band GSM feature, TV, FM, Bluetooth,GPS/AGPS, HQ Youtube playback, Capacitive Multi-touch screen, Dual Camera with flashlight,Android Market, Voice Search. This chipset was not a high performance gaming chipset, But it’s performancewas surprisingly well and exceeded even a lot of high end expensive chipsets.

                                                                                                                          Then in 2011 they have released the new MT6573 chipset. Now the MT6573 Android 2.3.4 phone cost $150-$210 and they still maintain the Dual SIM Dual Standby with Quad Band GSM and WCDMA/HSPA support. This chipset, Which main ArmV6 core is clocked at 600-650Mhz, integrate the PowerVR Series 5 GPU so it can run fluently games like Angry Birds, Fruit Ninja, Asphalt 5 and many more games. Most of them have 5-8MP back camera with HD video shoting and flashlight supported, HD Videos decoding. Still maintain the analog tv, Capacitive Multi-touch screen, FM Radio, 32GB MicroSD Slot,Bluetooth, GPS/AGPS, WiFi, Voice search and a lot of other advanced smartphonefeatures. The performance is very impressive for such a low price.


                                                                                                                          Turmoil on the H1CY12 market in China:
                                                                                                                          International and local brands, as well as white-box vendors are repositioning for the most lucrative CNY500 (US$79) to CNY1,000 (US$157) smartphone market of H2CY12 and on

                                                                                                                          Digitimes Research: Huawei, ZTE, Lenovo and Coolpad to take 40% of China smartphone market in 2012 [June 27, 2012]

                                                                                                                          The development of China’s smartphone market has drawn much attention, particularly in 2012, during which the local brands Huawei Device and ZTE will make it to the global top-10 smartphone vendor list. Digitimes Research expects two other brands, Lenovo and China Wireless Technologies (Coolpad), to see their smartphone shipments surpass the 10 million mark in 2012.

                                                                                                                          In the domestic market, Huawei and ZTE both have been trying to expand their share in the mid-range to high-end segments, resulting in a decline in shipments of low-priced models. While smartphone shipments by Huawei and ZTE will continue increasing in 2012, the two vendors are expected to see the ratios of their shipments to total smartphone shipments in China decline to 12% and 9%, respectively in 2012 from 16% and 11% of a year earlier.

                                                                                                                          Lenovo, which has been maintaining a close relation with chipset solution vendor MediaTek and has been focusing on the entry-level segment, is expected to ship 12 million smartphones in 2012, Digitimes Research estimates.

                                                                                                                          Coolpad is migrating to the smartphone sector rapidly and is likely to ship 11.1 million smartphones this year, accounting for 70% of its total handset shipments.

                                                                                                                          Digitimes Research predicts that shipments of smartphones in China will top 140 million units in 2012, with Samsung and Apple accounting for a combined 40% share. Huawei, ZTE, Lenovo and Coolpad are expected to together take up another 40%, limiting the development potential of other brands.

                                                                                                                          Taiwan IC designers looking to orders from China-based white-box smartphone vendors [DIGITIMES, June 20, 2012]

                                                                                                                          Taiwan-based IC design houses have rekindled their hope that they can cooperate once again with China-based white-box handset makers to make a strong presence in China’s smartphone market thanks to the offering of inexpensive chipset solutions from MediaTek and MStar Semiconductor and the rising popularity of smartphone models priced at around CNY1,000 (US$158), according to industry sources.

                                                                                                                          The availability of the mature and inexpensive chipset solutions and reference designs has lowered the barriers for white-box makers to also jump into the smartphone segment, the sources indicated.

                                                                                                                          Taiwan-based IC design houses which made a fortune previously by supplying related 2.5G ICs to the white-box manufacturing sector, have begun building up their inventory to meet anticipated demand from China-based white-box makers, noted the sources.

                                                                                                                          Given that international handset brands have a tendency to cooperate with a limited number of IC vendors, shipments to white-box handset makers in China will serve as a growth driverfor Taiwan-based IC vendors in the second half of 2012, said the sources.

                                                                                                                          Taiwan-based LCD driver IC vendors Novatek Microelectronics, ILi Techonology (Ilitek), Sitronix Technology, Orise Technology, and controller IC vendors Elan Microelectronics, Egalax-empia Technology (EETI), as well as analog IC makers Richtek Technology, Global Mixed-code Technology and Anpec Electronics will bebenfit from the re-rise of white-box handset makers, commented the sources.

                                                                                                                          China market: Small-scale makers and retail channels to stage comeback in smartphone segment [DIGITIMES, June 15, 2012]

                                                                                                                          Small-scale handset makers as well as retail handset channels in China may stage a comeback in the smartphone segment optimizing the availability of low-priced models, according to industry sources.

                                                                                                                          Under the aggressive marketing strategy and heavy subsidies launched by telecom carriers, sales of smartphones have been strong in the replacement market, said the sources, but added that the top carriers have been dominating the market with their customized models, affecting sales in retail channels, said the sources.

                                                                                                                          However, the availability of reference designs for the production of smartphones has enabled a large number of small- and medium-size handset makers in China to also jump into the segment, triggering a sharp decline in prices of smartphones, noted the sources.

                                                                                                                          Prices of unlocked smartphones are expected to drop to below CNY500 (US$79) soon, making it affordable for consumers to pick up smartphones at retail shops without signing subscription contracts with carriers, the sources commented.

                                                                                                                          China market: Qualcomm pushing sales of 3G solutions to small- to medium-sized handset makers [DIGITIMES, June 12, 2012]

                                                                                                                          Qualcomm has geared up efforts to push sales of its smartphone solutions to small- to medium-sized handset makers in China, attracting a number of vendors shifting away from the comparable solutions offered by Taiwan-based MediaTek, according to industry sources.

                                                                                                                          To counter Qualcomm’s strategy, MediaTek has also stepped up sales of its 3G solutions to first-tier handset makers in Chinainstead of its previous focus on small- and medium-sized vendors, the sources indicated.

                                                                                                                          In addition to Qualcomm and MediaTek, other chipset vendors including ST-Ericsson, Intel, Spreadtrum Communications and MStar Semiconductor, are exerting all-out efforts to grab the handset solution market in China, said the sources, adding that competition between Qualcomm and MediaTek is the fiercest.

                                                                                                                          But a large number of branded and white-box handset makers in China still prefer Android- and 3.5G-enabled solutions as well as dual-core solutions from MediaTek, since they have established mature business relationships with MediaTek, the sources commented.

                                                                                                                          Digitimes Research: Smartphones to take 32% of China handset market in 2012 [June 8, 2012]

                                                                                                                          Digitimes Research estimates that China handset shipments will grow to 430 million units in 2012, with smartphones likely to take 32% of the market, equivalent to 143 million handsets. Given that China already accounted for 22% of global handset shipments in 2011 and the country’s mobile user base is projected to hit 1.13 billion people in 2012, the potential of the country’s smartphone market is staggering.

                                                                                                                          The boom in China’s smartphone market that began in 2011 was sparked by the expansion of 3G service coverage and falling budget smartphone prices. Carriers have driven this change in an attempt to bolster flagging ARPUs, which stood at just CNY37 (US$6) per month for 2G users of China Unicom in 2011; the ARPU for the carrier’s 3G subscribers was a much more respectable CNY110, according to an upcoming Digitimes Research Special Report on China’s smartphone market.

                                                                                                                          Carriers have been able to entice China’s price-conscious consumers to make the 3G switch chiefly by offering extremely cheap smartphones priced at around CNY1,000, a figure which could yet fall as low as CNY599 in 2012. This concentration in the low end of the market is a major contributing factor to the dominance of Android in China.

                                                                                                                          However, consumers in this sector are not willing to spend heavily on profitable 3G services and ARPU for 3G users is already falling steeply. At the current rate of decline, the 3G ARPU will fall to an estimated CNY82 during 2013. China’s smartphone switchover may therefore not prove to be quite as lucrative as the country’s carriers had hoped.

                                                                                                                          Android 4.0 in entry-level to mid-range smartphones to rise in 2H12 [DIGITIMES, June 7, 2012]

                                                                                                                          While Android 2.x versions take up about 90% of Android-based smartphones, Qualcomm and MediaTek have begun to offer Android 4.0 common chip solutionsfor smartphone vendors and therefore version 4.0 is expected to be widely adopted for entry-level to mid-range smartphones in the second half of 2012, according to industry sources.

                                                                                                                          Because Samsung Electronics, HTC, LG Electronics and other vendors have launched Android 4.0 smartphones, and have offered upgrades for older models in the second quarter of 2012, the penetration rate of Android 4.0 has risen from 2.9% in April to 7.1% currently, the sources indicated.

                                                                                                                          China market: Entry-level smartphones to feature dual-core CPUs in 2H12 [DIGITIMES, June 5, 2012]

                                                                                                                          Smartphones featuring dual-core CPUs are expected to begin penetrating into the CNY1,000 (US$157) smartphone segment in China in the second half of 2012 thanks to dual-core reference designs offered by MediaTek and Qualcomm, according to industry sources.

                                                                                                                          Other chipset solution vendors such as ST-Ericsson are also expected to enter the dual-core segment soon, indicated the sources.

                                                                                                                          Dual-core smartphones may even become the mainstream white-box models in the second half which will squeeze market share from single-core models, and hence triggering a price war, the sources said.

                                                                                                                          In addition to pushing the clock speeds of CPUs from 1GHz to 1.2GHz, China-based handset makers will also adopt 4.3-inch displays for mainstream entry-level and mid-range modelsinstead of the prevailing 4-inch screens, added the sources.

                                                                                                                          Prices of single-core smartphones in China are likely to fall below CNY500 in the second half, which may result in a dumping of entry-level and mid-range smartphones by China-based handset makers in the global market, the source commented.

                                                                                                                          Qualcomm scores points in promoting QRD in China [DIGITIMES, June 4, 2012]

                                                                                                                          Qualcomm began to offer Qualcomm Reference Design (QRD), a platform for developing smartphone components including memory, sensors, touch screens, cameras and RD devices as well as application software, for vendors and makers in China two years ago and has made significant achievements in boosting inexpensive smartphones by helping its China-based partners, according to company senior vice president and Greater China president, Wang Xiang.

                                                                                                                          QRD aims to reduce input of resources in development and time to market for China-based smartphone vendors and makers, Wang said. 28 models of smartphones have been launched by 17 vendors under QRD, and more than 100 models are being developed for launch in 2012, Wang indicated.

                                                                                                                          Qualcomm has set up four China branches in Beijing, Shanghai, Shenzhen and Xi’an and two R&D centers in Beijing and Shanghai, according to company senior vice president and QRD director, Jeff Lorbeck.

                                                                                                                          Qualcomm will focus promotion of QRD in China to reduce component costs in 2012 and plans to help China-based partners tap emerging markets in India, Latin America and Southeast Asia through providing technical support in 2013, Wang said.

                                                                                                                          Lenovo aims to triple smartphone shipments in 2012 [DIGITIMES, June 4, 2012]

                                                                                                                          Lenovo plans to launch as many as 40 new models of smartphones in 2012, aiming to ramp up its smartphone shipments to 18 million unitsin the year compared to six million units shipped in 2011, according to the company.

                                                                                                                          Lenovo aims to roll out a lineup of smartphones with different price tags to meet demand from all segments of customers, the company said. Smartphone models priced below CNY1,000 (US$157) currently account for 30% of smartphones sold in China, models priced at CNY1,000-1,499 take another 30%, and those priced above CNY1,500 make up the remaining 40%, Lenovo indicated.

                                                                                                                          Lenovo saw its smartphone shipments in China grow 21-fold on year in the first quarter of 2012, enabling the company to take up a 10% share in the quarter compared to just 1% a year earlier. The vendor also captured the fourth-rank position in the smartphone segment in China in Aprilwith a 10.21% share, said China-based Sino Marketing Research.

                                                                                                                          WCDMA models account for 49% of all smartphones sold by Lenovo currently, followed by CDMA EV-DO models at 26% and TD-SCDMA models at 18%, the company noted.

                                                                                                                          Lenovo also plans to roll out dual-core models in the second half of 2012, using MediaTek’s MT6577 solutions and Qualcomm’s QRD 8×25 and 8×26 solutions, according to industry sources.

                                                                                                                          Lenovo’s handset OEM partners, including Foxconn International Holdings (FIH), Compal Communications and Wistron NeWeb, are expected to benefit from increasing shipments by Lenovo, the sources indicated.

                                                                                                                          China market: China Unicom gearing up for sub-CNY800 WCDMA smartphones [DIGITIMES, June 4, 2012]

                                                                                                                          China United Network Communications (China Unicom), the only WCDMA mobile telecom carrier in China, will promote sale of WCDMA smartphone models priced at below CNY800 (US$127) to attract 2G subscribers to shift to WCDMAin the China market, according to the company.

                                                                                                                          Of handsets sold at CNY599 or below in the China market in April 2012, TD-SCDMA models took up 24%, CDMA2000 EV-DO models 15% and WCDMA models 1%, according to China-based Sino Market Research. Of handsets sold at CNY600-799, TD-SCDMA, CDMA2000 EV-DO and WCDMA accounted for 20%, 10% and 6% respectively, Sino indicated.

                                                                                                                          The demand for smartphones in the China market in 2012 is forecast at 200 million units and 44% of which, that is, 88 million units, will be sold at below CNY800, meaning big opportunities for China Unicom, the company said.

                                                                                                                          In addition to inexpensive smartphones, China Unicom has cooperated with international vendors including LG Electronics, Nokia, HTC, Motorola Mobility as well as China-based vendors K-Touch and Xiaomi Technology to launch mid- to high-level models in the China market for market segmentation, the company noted.

                                                                                                                          China Unicom has been upgrading HSPA+ service and has deployed 21Mbps HSPA+ networks in 56 cities in China, the company said. While there have been 245 models of HSPA+-enabled terminal devices around the world, China Unicom plans to launch price-competitive models of such devices, the company indicated.

                                                                                                                          China market: First-tier local brands shifting focus to CNY1,000-1,500 smartphones [DIGITIMES, June 1, 2012]

                                                                                                                          First-tier local brand handset vendors in China have begun adjusting their strategy to focus on marketing mid-range smartphoneswith prices ranging CNY1,000-1,500 (US$157-236) instead of the previous focus on sub-CNY1,000 models, according to industry sources.

                                                                                                                          The launch of sub-CNY1,000 smartphones by the top-3 telecom carriers as well as the roll-out of CNY500 models by second-tier handset makersin China has induced top-tier vendors to shift their focus, said the sources.

                                                                                                                          The second-tier handset makers have been engaged in cut-throat competitionin order to win open bids released by the top-3 telecom service companies, noted the sources, adding that China Mobile has even launched a sub-CNY200 model.

                                                                                                                          Top-tier vendors, including Coolpad, ZTE, Huawei and Lenovo, are expected to reduce the number of their the sub-CNY1,000 smartphones and will be more active to participate in bidding for CNY1,000-1,500 models, said the sources.

                                                                                                                          The move by China-based top smartphone brands to the mid-range segment will see them take on some international players including Samsung Electronics, HTC, Nokia, Motorola Mobility which have ventured into the CNY1,000-2,000 segment, the sources commented.

                                                                                                                          Rumor: China’s Smartphone Prices to Drop to RMB 600 [Marbridge Daily]

                                                                                                                          Southern Daily, 5/31/12

                                                                                                                          Industry sources claim that China’s smartphone prices could drop to RMB 600 in H2 2012 due to increasing availability of low-priced smartphone chips. Smartphones featuring Taiwanese fabless semiconductor company MediaTek’s (MTK) MT6573 processor are available on B2C e-commerce sites such as Taobao and Paipai for RMB 800 and below. MediaTek’s MT6575 chipset, released in March, has already appeared in handsets from domestic handset vendors such as Lenovo (0992.HK), Gionee, ZTE (0763.HK; 000063.SZ), and Yulong (Coolpad), as well as foreign brands such as Motorola. The MT6575 is currently available for between RMB 1,000 to RMB 1,500. Taiwanese chipmaker MStar Semiconductor plans to release its first dual-core chipset solution for RMB 1,000 smartphones next week.

                                                                                                                          According to a source within Lenovo Mobile, ST-Ericsson released its U8500 dual-core chipset platform in Q1 2012, and handset models using the platform are available from overseas brands at prices no higher than RMB 2,000. Domestic brand handset models featuring the chipset are expected to reach the market in Q2 and Q3 priced at approximately RMB 1,500. Chinese internet company Shanda Interactive will soon release its own branded smartphone using the U8500 priced at RMB 1,199. In addition, Qualcomm will launch its MSM7x27A and MSM7x25A low-priced chipset platforms this year, which will feature in a number of RMB 1,000 smartphones from domestic handset manufacturers.

                                                                                                                          China-based smartphone vendors to compete with big players with ultra-thin models [DIGITIMES, May 29, 2012]

                                                                                                                          China-based handset vendors have ventured into the production of ultra-thin smartphones, enhancing their strength to compete with international brands in the global market, according to industry sources.

                                                                                                                          China-based vendor Oppohas highlighted this manufacturing trend in China by releasing the Finder recently. The Android 4.0-based Finder has a thickness of only 6.65mm.

                                                                                                                          The Finder also features a 1.5GHz dual-core processor, 1GB RAM, 16GB ROM, a 4.3-inch Super AMOLED Plus screen, an 8-megapixel rear camera and a 1.3-megapixel front camera, for a suggested retail price of about CNY3,500 (US$555)in China.

                                                                                                                          Oppo, one of the top-10 local brandsin China, focuses on the production of smartphones priced above CNY2,000 instead of the prevailing sub-CNY1,000 models, the sources noted.

                                                                                                                          Thickness of ultra-thin models by brands

                                                                                                                          Vendor
                                                                                                                          Model
                                                                                                                          Thickness
                                                                                                                          OS
                                                                                                                          Oppo
                                                                                                                          Finder
                                                                                                                          6.65mm
                                                                                                                          Android 4.0
                                                                                                                          Huawei
                                                                                                                          Ascend P1 S
                                                                                                                          6.68mm
                                                                                                                          Android 4.0
                                                                                                                          Motorola
                                                                                                                          Razr XT910
                                                                                                                          7.1mm
                                                                                                                          Android 2.3
                                                                                                                          HTC
                                                                                                                          HTC One S
                                                                                                                          7.95mm
                                                                                                                          Android 4.0
                                                                                                                          LG Electronics
                                                                                                                          Prada 3.0
                                                                                                                          8.5mm
                                                                                                                          Android 2.3
                                                                                                                          Samsung
                                                                                                                          Galaxy S III
                                                                                                                          8.6mm
                                                                                                                          Android 4.0
                                                                                                                          Apple
                                                                                                                          iPhone 4S
                                                                                                                          9.3mm
                                                                                                                          iOS5

                                                                                                                          ST-Ericsson seeking cooperation with China-based low-cost smartphone vendors, says paper [DIGITIMES, May 28, 2012]

                                                                                                                          ST-Ericsson has won adoption of its U8500 chip solution by China-based Shanda which will launch a smartphone for sale at about CNY1,000 (US$158) in the China market on June 6, according to China-based 21st Century Business Herald.

                                                                                                                          ST-Ericsson is seeking adoption of its chip solutions by more China-based vendors looking to launch smartphones priced at CNY1,000-2,000, the paper indicated. Smartphones for sale at CNY1,000-2,000 accounted for about 50% of all smartphones sold in the China market in 2010 and 2011, with ZTE, Huawei, and Coolpad the leading vendors, the paper said.

                                                                                                                          China market: 4 local vendors amid top-5 in 3G smartphone market in April [DIGITIMES, May 25, 2012]

                                                                                                                          In the China market, Samsung Electronics recorded the largest market share of 22.75% for 3G smartphones in April 2012, followed by four China-based vendors — Coolpad with 11.17%, Huawei with 10.92%, Lenovo with 10.21% and ZTE with 9.28%, China Economic Netcited China-based Sino Market Research as indicating.

                                                                                                                          Other international vendors’ market shares were 8.52% for Apple, 4.14% for Motorola Mobility, 3.95% for Nokia and 2.82% for HTC, the report indicated.

                                                                                                                          The increased market occupation by China-based vendors was mainly due to selling of their entry- to mid-level 3G smartphone models through contract-bundled sales by China Mobile, China Telecom and China Unicom, the report said.

                                                                                                                          MediaTek lands 2.5G handset solution orders from Nokia, say sources [DIGITIMES, May 21, 2012]

                                                                                                                          MediaTek reportedly has landed orders for 2.5G handset solutions from Nokia with shipments to begin in the third quarter of 2012, according to industry sources. MediaTek declined to comment.

                                                                                                                          Given that global demand for 2.5G handset solutions still reaches one billion units a year, there is room for MediaTek to further expand sales in the segment although the company’s sales of 2.5G solutions have been turning weak recently, indicated the sources. MediaTek shipped 550 million 2.5G solutions in 2011.

                                                                                                                          With a revised goal of shipping 75 million 3G solutions in 2012, mostly to first-tier handset makers in China, MediaTek is expected to post strong revenue growth in the second half of the year, the sources noted.

                                                                                                                          Smartphone vendors considering other chip sources due to short supply of Qualcomm Snapdragon S4 [May 15, 2012]

                                                                                                                          Qualcomm has seen supply of its Snapdragon S4 processors fall short of increasing demand and the situation has pushed international smartphone vendors, including Samsung Electronics, LG Electronics, HTC and Sony Mobile Communications, to consider other suppliers, according to Taiwan-based handset supply chain makers.

                                                                                                                          The short supply of Snapdragon S4 is because Taiwan Semiconductor Manufacturing Company’s 28nm foundry capacity is not sufficient and/or the yield rate of the process is not high enough, the sources pointed out.

                                                                                                                          MediaTek looks to ship 75 million 3G solutions in 2012 [DIGITIMES, May 9, 2012]

                                                                                                                          MediaTek is expected to ship 75 million 3G handset solutions in 2012, a 50% increase from 50 million units it projected earlier, according to industry sources.

                                                                                                                          Insufficient capacity of the 28nm process at Qualcomm has forced China-based Huawei Device and ZTE, in addition to existing client Lenovo, to source 3G solutions from MediaTek, contributing to a sharp increase in orders for the IC design house, indicated the sources.

                                                                                                                          Huawei’s and ZTE’s 3G smartphones built based on MediaTek’s MT6575 solutions are expected to hit the market at the end of the second quarter or early in the third quarter of 2012, said the sources, adding that the new M6575 models from Huawei and ZTE will directly take on Lenovo’s comparable model, the A750, in the China market.

                                                                                                                          Meanwhile, MediaTek has reported consolidated revenues of NT$7.942 billion (US$269 million) for April, decreasing 3.48% on month but increasing 4.19% on year. For the January-April period of 2012, consolidated revenues amounted to NT$27.557 billion, up 0.25% on year, said MediaTek.

                                                                                                                          China-based white-box vendors expected to ship 200 million smartphones [DIGITIMES, April 17, 2012]

                                                                                                                          China-based white-box vendors, mainly due to the availability of inexpensive new chip solutions, have been increasing the production of smartphones, with the total shipment volume expected to reach 200 million units in 2012, according to industry sources in Taiwan.

                                                                                                                          Taiwan-based MediaTek is offering the makers its MT6575 a chip solution for use in entry-level smartphones in the first quarter of 2012 and will offer the MT6577, a solution for high-level smartphones, in the middle of the third quarter of 2012, the sources indicated. MediaTek will ship 50-70 million chips to China-based white-box vendorsto account for nearly 30% of smartphones to be shipped by these vendors in 2012.

                                                                                                                          In addition, Qualcomm has strengthened its marketing in the China market by offering turn-key solutions to white-box vendors, with prices for a chips lowered to US$6, the sources cited eMedia Asia as indicating.

                                                                                                                          China-based white-box vendors sell more than 60% of their smartphone output to overseas markets, including 2.5G models for markets where deployment of 3G networks is not mature yet, the sources indicated. White-box vendors are expected to see larger market demand if their production costs for entry-, medium– and high-level smartphones drop to US$60, US$85 and US$130 respectively, the sources pointed out.

                                                                                                                          China market: Motorola moving into CNY1,000 smartphone segment, says paper [DIGITIMES, April 13, 2012]

                                                                                                                          Motorola Mobility has ventured into the CNY1,000 (US$159) smartphone segment in China with the launch of its XT390 smartphone in cooperation with China Unicom, according to a Chinese-language Commercial Timesreport.

                                                                                                                          The XT390 is also the first Android-enabled smartphone rolled out by Motorola using MediaTek’s 6575 chipset solution, indicated the paper.

                                                                                                                          Motorola has outsourced the production of the XT390 to Arima Communications and may place orders for up to one million smartphones with the Taiwan-based handset ODM in the second quarter of 2012, said the paper.

                                                                                                                          China market: Top-4 local vendors to keep entry-level smartphone prices around CNY1,000 in 2012 [DIGITIMES, March 30, 2012]

                                                                                                                          The top-4 China-based branded handset vendors – Huawei Device, ZTE, Lenovo and Coolpad – will continue to develop the CYN1,000 (US$159) smartphone segment in China in 2012 and will prevent their channel operators from engaging in price-cutting competition with white-box vendors, according to industry sources.

                                                                                                                          More newcomers have entered the smartphone sector in China, propelled by the launch of related reference designs for smartphones by MediaTek, MStar Semiconductor, Qualcomm and Spreadtrum Communications, raising the possibility that prices of the entry-level smartphones may drill downward to a range of CNY400-700 compared to the prevailing prices of around CNY1,000, the sources noted.

                                                                                                                          Despite increasing pricing competition from white-box handset makers as well as international brands including Nokia and Samsung Electronics, the top-4 local brand vendors are unlikely to lower their prices further until makers in the handset component supply chain are able to reduce their quotes substantially, said the sources.

                                                                                                                          To maintain competitiveness and brand images, the top-4 vendors are expected to roll out models with higher hardware specifications for the CNY1,000 segment, the sources commented.

                                                                                                                          Shipments of smartphones in China are expected to grow 40-60% on year in 2012, the sources estimated.

                                                                                                                          China-based white-box handset players may face bankruptcy [DIGITIMES, March 29, 2012]

                                                                                                                          China-based white-box handset players are suffering as larger local players ZTE, Lenovo and Huawei are aggressively entering the CNY1,000 (US$159) smartphone segment, while first-tier smartphone brands such as Samsung Electronics and Nokia are also reducing their prices. White-box players are expected to see a 30% drop in their overall sales in 2012 with several hundred expected to go bankrupt, reshuffling China’s handset industry, according to sources from smartphone players.

                                                                                                                          As consumers in China have increasing demand for Internet connectivity, while their recognition of brand names is also rising, the white-box handset market in China, which is mainly focused on low price and design flexibility, is shrinking rapidly.

                                                                                                                          Since China-based telecom carriers are aggressively providing subsidies to ZTE, Huawei and Lenovo to allow these players to lower their smartphone prices, while white-box players are losing their advantages in price as they are unable to acquire cheap components due to their shipment scale, it has helped larger smartphone players to narrow the price gap with white-box handsets.

                                                                                                                          With more brand vendors pushing into the mid-range and entry-level smartphone market, the average price of entry-level smartphones is expected to reach CNY700 (US$100), a level almost the same as cost. In addition, white-box players’ advantages in design flexibility is also no longer attracting consumers as the size of the touch screen has already become the major criteria for consumers.

                                                                                                                          China market: Chip vendor competition heating up for 1GHz processors used in inexpensive smartphones [DIGITIMES, Jan 17, 2012]

                                                                                                                          As China Mobile, China Telecom and China United Network Communications will procure large volumes of inexpensive smartphones equipped with 1GHz processors, there is increasing competition among handset chip vendors Qualcomm, Taiwan-based MedaTek, Broadcom and China-based Spreadtrum Communications, according to Taiwan-based handset makers.

                                                                                                                          While the four vendors and others have offered 1GHz chip solutions supporting 3.5G, Android, multimedia and dual-mode functions, the Qualcomm-developed MSM7227A [Cortex-A5 based @ upto 1GHz]solution has gained the upper hand, followed by MediaTek-developed MT6575, the sources indicated. In contrast, Spreadtrum and Broadcom are competing for orders by virtue of differentiation in function, with the former focusing on TD-SCDMA, a China-developed 3G standard, solutions and the latter’s solutions featuring integration of NFC (near field communication), Bluetooth 4.0, 802.11n and GNSS (global navigation satellite system) functions, the sources pointed out.

                                                                                                                          In the China market, Nokia, Samsung Electronics, Motorola Mobility, Sony, HTC as well as China-based vendors Huawei Device, ZTE, Lenovo, TCL, Haier and Hisense will launch inexpensive entry-level smartphones equipped with 1GHz processor in 2012, the sources noted. China-based vendors are expected to release ODM or EMS orders to Taiwan-based makers, the sources indicated.

                                                                                                                          MWC 2012: the 4G/LTE lightRadio network

                                                                                                                          Day 1: Alcatel-Lucent at MWC 2012 – lightRadio [AlcatelLucentCorp YouTube channel, Feb 28, 2012]

                                                                                                                          Video of Day 1 at Mobile World Congress 2012. Booth tour, images from Telefonica’s press conference about their live LTE network with lightRadio, interviews and more… Wim Sweldens, President Wireless Division Alcatel-Lucent: “You can experience it all over Barcelona but you can’t actually see it. The cells are so small that they are hidden behind the buildings. There is no need for more towers to actually deploy this much capacity and coverage for the network.” …

                                                                                                                          Telefónica unveils smart 4G experience at Mobile World Congress [Telefónica press release, Feb 26, 2012] or After a Year of Close Collaboration with Alcatel-Lucent and with the Support of Samsung, Telefonica Unveils Smart 4G Experience at Mobile World Congress [Alcatel Lucent press release, Feb 26, 2012]

                                                                                                                          image– Telefónica’s smarter 4G delivers increased capacity in high data-traffic density areas and greater bandwidth than current LTE networks, as well as superior indoor coverage.
                                                                                                                          – Small-cell technology speeds up network deployment, reduces costs and makes more efficient use of spectrum use and costs.
                                                                                                                          – First LTE deployment of its kind at 2.6Ghz band frequency and the first time that real users will be able to experience the benefits of the 4G technology of the future.

                                                                                                                          imageTelefónica today announced the first live experience of the world’s ‘smartest’ 4G network, in the most ambitious technological innovation ever deployed at the Mobile World Congress[1]. The network – the world´s first of its kind in the 2.6Ghz frequency band – provides download speeds of 100 Mbps, between 40-60Mbps on upload, vastly improved indoor coverage and can increase capacity by up to 400 per cent in high density data-traffic areas.

                                                                                                                          Based on Alcatel-Lucent‘s lightRadio technology, Telefónica‘s network is a revolutionary first step towards a real ‘HetNet’ network, which greatly improves mobile coverage by bringing small-cell base stations closer to the customer. In this deployment conventional radio base stations co-exist with 4G metro cells (small base stations incorporating antennas and radio) working on the same frequency and with no interference. As a strong supporter for Telefonica‘s LTE service initiative, Samsungis also presenting the first LTE smart mobile devices for band 7 (2.6Ghz), GALAXY S II LTE smartphone and GALAXY Tab 8.9 LTE tablet, which can be used on this new high-capacity network.

                                                                                                                          The most significant feature of Telefónica‘s LTE network is its increased capacity – with each cell comfortably supporting 30 people browsing simultaneously with average speed of 30Mbps. Tests conducted on this network show that a 400% increase in capacity can be made available to users compared to a conventional network design, and that significantly higher capacity gains could be delivered with denser metro-network design. The network supports speeds of up to 10 times those offered by the 3G network, with download speeds of 100Mbps, upload speeds of 40-60 Mbps and with latency times of around 20-25 milliseconds.

                                                                                                                          ‘Today the future of mobile networks begins’, said Enrique Blanco, Telefónica‘s Chief Technology Officer. ‘The deployment of LTE that Telefónica has brought to the MWC, together with Alcatel -Lucent, gives us a glimpse of a tomorrow where everyone and everything is seamlessly connected, and in superfast time. But the challenge ahead is to ensure that all the technologies currently being deployed – 2G, 3G, LTE, Wi-Fi and Fiber – can co-exist to deliver next generation communications. Telefónica’s strategy is to develop intelligent networks that allow these different technologies to co-exist efficiently and cover customers’ growing connectivity needs in markets that are at different stages of development’.

                                                                                                                          Another key benefit of the advanced feature network is that it utilises the same frequency for several network layers, allowing for far more efficient use of spectrum. This solution would also reduce network deployment costs by as much as 40 per cent, as the installation of small-cells significantly reduces the amount of construction, installation and configuration work needed. Additionally, small-cells use less powerful amplification equipment, resulting in energy savings of up to 35 per cent and a guaranteed reduction in environmental impact.

                                                                                                                          Wim Sweldens, President of Alcatel-Lucent‘s Wireless Division said: ‘This close collaboration with Telefónica through our co-creation programme is a clear articulation of the future of mobile broadband – rather than merely evolving their current architecture, which was designed for voice and messaging, Telefónica is making fast progress toward building a mobile broadband network designed with the future in mind. The wireless network of the future needs to be lighter, greener and closer to customers and deliver much higher capacity – that is what lightRadio is all about’.

                                                                                                                          ‘Samsung has been actively collaborating with Telefónica for LTE trial services with a variety of device line-up from LTE dongles to MiFi and LTE smartphones across European markets. I am excited to join Telefónica’s breakthrough LTE demonstration with our representative LTE models, GALAXY S II LTE and GALAXY Tab 8.9 LTE’, said DJ Lee, executive vice president and head of Sales and Marketing team for SamsungMobile. ‘We are fully committed to supporting Telefónica’s LTE roll-out and hopefully will try to expand our LTE partnerships not only for European markets but also including Latin American markets. Our ambition is to become a number one LTE partner for Telefónica’.

                                                                                                                          Visitors to MWC will be able to experience first-hand the wide range of options generated by this innovative network at the Telefónica stand (Hall 8), where the smallest metro cells in the market and the latest LTE devices from Samsung are being exhibited. A video wall will demonstrate the capabilities of the network by projecting filmed live at the congress and delivered via LTE. The Samsung LTE devices will be used for high-definition videoconferences. This will demonstrate for both applications the improvements in speeds of both links for uploads and downloads. There will be real-ime gaming demonstrations as well as augmented reality and hypermedia applications that highlight the latency and versatility of the network.

                                                                                                                          Background information:
                                                                                                                          Alcatel-Lucent collaborates with Telefonica to bring the first superfast 4G mobile broadband services to consumers in Spain [Alcatel-Lucent press release, Sept 14, 2011]
                                                                                                                          lightRadio™: Evolve your wireless broadband network for the new generation of applications and users [Alcatel-Lucent microsite, Feb 27, 2012]
                                                                                                                          Wi-Fi goes mobile with Alcatel-Lucent [Alcatel-Lucent press release for lightRadio WiFi, Feb 14, 2012]
                                                                                                                          lightRadio WiFi [Alcatel-Lucent microsite, Feb 14, 2012]

                                                                                                                          Day 2: Alcatel-Lucent at MWC 2012 – Bell Labs [AlcatelLucentCorp YouTube channel, Feb 29, 2012]

                                                                                                                          Video of Day 2 at Mobile World Congress 2012. A look at Bell Labs research, interviews with Alice White, Markus Hofmann, Marcus Weldon and Tod Sizer. The research project started 2 years ago that lead to the lightRadio is mentioned as the showcase example of Bell Labs contributions to the advancement of the communication industry.

                                                                                                                          lightRadio™ Network: A New Wireless Experience [ by Rasika Abeysinghe, PhD in Enriching Communications, Alcatel-Lucent business e-zine, Feb 27, 2012]

                                                                                                                          Highlights

                                                                                                                          • Operators can deliver up to 10-times more capacity by deploying a 1:10 ratio of small- to macro cells
                                                                                                                          • The lightRadio Network can improve capacity by up to 70%
                                                                                                                          • A modular and virtualized architecture lets operators adapt to changing usage patterns

                                                                                                                          The rising demand for mobile broadband services is straining legacy wireless networks. Operators face increasing pressure to deliver the rich quality of experience (QoE)their customers and partners expect. To meet these expectations and remain competitive, they need cost-effective and sustainable network architectures that can deliver increased connectivity and capacity on demand.

                                                                                                                          QoE: The new currency in the mobile value chain

                                                                                                                          As the focus of mobile wireless communications shifts from voice to data, users attach greater importance to QoE. Today’s users expect fast wireless networks, comprehensive coverage and uninterrupted connectivity. There’s no room for delays, dropped connections or peak-time congestion in their vision of mobile broadband.

                                                                                                                          Users clearly value QoE, but application and content providers (ACPs) depend on it. Whether ACPs offer TV streams, interactive apps or video conferencing services, QoE plays a central role in their success. They have a vested interest in ensuring that users enjoy the best possible experience. For this, ACPs rely on mobile operators and their networks.

                                                                                                                          To move up the mobile value chain and attract partnerships with ACPs, operators have to deliver on QoE. Operators can control QoE, for example, by managing bit rates or by making it easy for users to switch between 2G/3G/LTE networks and Wi-Fi hotspots. But they need to control it more efficiently to prove their value as partners and providers and position themselves as the ideal channel for delivering value-added applications and content.

                                                                                                                          The QoE and capacity challenge

                                                                                                                          Legacy macro networks were built to support voice services, a task they perform extremely well. But the demand for mobile broadband data services adds new and more complex challenges to wireless networks. Operators who retrofit voice networks for data face a host of new challenges.

                                                                                                                          For example, operators don’t always have spectrum for mobile broadband services. This makes it tough to meet demand for data. Increasing indoor wireless use also presents problems. Outdoor macro towers can’t always deliver sufficient data rates, coverage and capacity to users in homes and offices.

                                                                                                                          Today, operators are constantly trying to squeeze more capacity out of legacy networks. One common strategy is cell splitting — adding cells, towers and sites. This can be complex and expensive, and zoning rules can even make it impossible in some areas. Operators that don’t evolve their networks — or don’t evolve fast enough — may be left behind by customers and competitors who embrace next-generation equipment.

                                                                                                                          Building wireless networks for an unpredictable future

                                                                                                                          Mobile operators want wireless networks that can help them tackle the challenges of today and tomorrow. These challenges include:

                                                                                                                          • Adding capacity where users want and need it
                                                                                                                          • Ensuring that customer QoE is met
                                                                                                                          • Building a cost-effective foundation for addressing future demand
                                                                                                                          • Delivering eco-sustainable solutions

                                                                                                                          Smartphone penetration and mobile data traffic are increasing rapidly. According to Vision Mobile, in the 3rd quarter of 2011 smartphone shipments penetration surpassed 29% globally.[1]People still use their phones mostly for voice — on a time basis. However, they consume more data with apps including video streaming, music, web browsing and social networking from their homes, offices and in the community. They connect to hotspots in high-traffic areas like stadiums, public squares and hotels. Operators have to provide more capacity in more locations to ensure that QoE follows users wherever they go.

                                                                                                                          While no one can say for certain what capacity needs will be in 5 years, we do have reasonably good models for the next 6 months to a year. However, if a new type of device like the Apple iPhone® or iPad®[2]arrives on the market it could cause a major disruption. What we know right now is that new wireless devices — smartphones, tablets, gaming consoles, in-car devices — will fuel demand by supporting smarter applications and richer content. Wireless networks will need to be flexible enough to handle whatever demand the future brings. And they’ll need to do it while keeping costs low.

                                                                                                                          It’s not all about delivering more capacity and richer experiences. Operators need to consider the environment, too. The next generation of wireless network architectures must have a smaller carbon footprint. This means consuming less power. It also means deploying elements that use less space and blend in with what’s around them. No one wants to see more towers and more bulky equipment.

                                                                                                                          The lightRadio™ Network advantage

                                                                                                                          Alcatel-Lucent has introduced the lightRadioNetwork to empower operators to deliver on their present and future challenges. It seamlessly increases capacity and extends it to more places, helping operators satisfy users and generate new revenue. It reduces power consumption and footprint, enabling operators to promote sustainability and bottom-line growth. And it provides an effective foundation for supporting future demand, helping operators manage capacity and cost.

                                                                                                                          For users, it all comes down to QoE. With the lightRadio Network, users get higher throughputs to support the rich experiences they crave. In contrast to traditional wireless networks, this support is continuous: Whether indoors, outdoors or on the move, users switch seamlessly to the best possible network. There’s no need to pause a video or interrupt an application to select a hotspot or enter a password.

                                                                                                                          A closer look

                                                                                                                          The lightRadio Network is inherently heterogeneous bringing together a broad range of technologies and different types of access nodes. At the same time, the architecture is homogenous: Its components share the same platforms, control and management. These components can include:

                                                                                                                          • Small cells, which extend coverage indoors and in hotspots. Small cells perform efficiently in residences and businesses. They work best when deployed close to users, for example, on lamp posts or walls in train stations or shopping centers. In a given network, operators can deliver up to 10-times more throughput by deploying a 1:10 ratio of small cells to macro cells.[3]
                                                                                                                          • lightRadio wideband active antenna arrays (WB-AAA), popularly known as cubes, that use advanced interference management algorithms to create overlapping zones of high signal strength. Known as vertical sectorization, this increases capacity and coverage for a given area. These comparatively low-power elements make more efficient use of spectrum. When deployed in a macro environment, they can improve capacity by up to 70%.[4]This improved capacity can help operators attract users and generate more revenue.
                                                                                                                          • Wi-Fi hotspots, that allow operators to offer additional options for access to high bandwidth data users. This has the dual benefit of keeping the end user satisfied and allowing the operator to take some traffic off costly cellular spectrum. The lightRadio architecture uses a common core network to support Wi-Fi and cellular access. Users can seamlessly switch between the two without having to enter a new password.

                                                                                                                          All of these components support sharing and virtualization, which help operators deliver more flexible capacity and control. For example, operators can connect lightRadio cubes to external baseband units (BBUs) to serve hotspots that require massive capacity, such as sports arenas. Or, operators can scale and share control capacity to cost-effectively improve performance at specific places and times. This can help overcome traffic spikes that arise as new devices connect to the data network.

                                                                                                                          Making the move

                                                                                                                          Operators face no significant barriers to making the move to the lightRadio Network. While each operator has a unique starting point based on its own business needs and operating environment they have a number of things in common. They need modular, flexible wireless networks that can address data demand and keep costs in check.

                                                                                                                          This new network architecture helps operators kick-start transformation with the wireless infrastructure, spectrum and multivendor networks they have now. An effective transformation includes:

                                                                                                                          • Targeting capacity problems in hotspots and indoors
                                                                                                                          • Migrating to LTE for efficient spectrum usage
                                                                                                                          • Adding a WB-AAA architecture for more capacity per site
                                                                                                                          • Virtualizing capacity and control for more flexibility

                                                                                                                          Operators can control costs by scaling capacity in manageable increments. These strategies and savings can extend to many parts of the network, including wireless backhaul links, small sites and legacy equipment.

                                                                                                                          By alleviating concerns about capacity, scalability and cost, the lightRadio network architecture offers operators the chance to rethink the challenges of the present and future. It can help them swap a defensive stance — coping with demand — for a positive approach focused on turning mobile broadband demand into new revenue.

                                                                                                                          To contact the author or request additional information, please send an email to enrich.editor@alcatel-lucent.com.

                                                                                                                          Footnotes
                                                                                                                          [1] Mobile Platforms: The Clash of Ecosystems, VisionMobile, Nov. 2011; http://www.visionmobile.com/blog/2011/11/new-report-mobile-platforms-the-clash-of-ecosystems/.
                                                                                                                          [2] iPhone® and iPad® are trademarks of Apple Inc.
                                                                                                                          [3] Based on Alcatel-Lucent study, 2011.
                                                                                                                          [4] ibid.

                                                                                                                          Day 3: Alcatel-Lucent at MWC 2012 – Cloud solutions [AlcatelLucentCorp YouTube channel, Feb 29, 2012]

                                                                                                                          Video of Day 3 at Mobile World Congress 2012, about cloud services and solutions of today and tomorrow, the role of the network and of service providers. … The cloud of tomorrow is all about Quality of Experience. This is where lightRadio networks are becoming the key elements of the future network infrastructure solutions. …

                                                                                                                          Alcatel-Lucent and China Mobile accelerate development of lightRadio™ to support exploding customer demand for mobile broadband in China [Alcatel Lucent press release, Feb 28, 2012]

                                                                                                                          Teams sign lightRadio™ architecture co-creation agreement to accelerate the development and delivery of lightning fast mobile broadband services in a sustainable way

                                                                                                                          Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile have signed a co-creationagreement under which teams from the two companies are conducting joint development and test activities on a series of lightRadio projects at Alcatel-Lucent’s Stuttgart lab.  The work will help to accelerate the smooth commercial introduction of this groundbreaking new product family to meet China Mobile’s business initiatives and support growing customer demand for high-bandwidth mobile broadband services.

                                                                                                                          China Mobile is the world’s largest mobile provider. Benefiting from the dramatic growth in mobile Internet use, China Mobile had around 650 million subscribers by the end of 2011. – and that number is growing at a rate of 11.2% year over year. Those customers are increasingly adopting smart phones, tablets and other mobile devices which is driving massive  demand for high-bandwidth mobile data services such as video and Internet gaming.

                                                                                                                          This co-creation agreement follows the non-binding MoU signed between Alcatel-Lucent and China Mobile in mid 2011. It also builds on the collaboration between the companies on the delivery of superfast mobile broadband using TD-LTE technology and the announcement of the first Trans-Pacific lightRadio video call. This agreement defines the projects that will be undertaken by the two companies and kicks off the co-development activities. This collaboration will speed the introduction of the lightRadio product prototype to the second half of the year.

                                                                                                                          Alcatel-Lucent’s lightRadio™ reduces the size of traditional mobile base stations to a Rubik’s cube, while lowering power-consumption and allowing the transfer of vast amounts of data at lightning fast speeds.

                                                                                                                          Ben Verwaayen, CEO of Alcatel-Lucent, said: “The ability for us to pair with the world’s largest mobile provider to gain deeper insight into its customer behaviours and the way services are evolving will ensure we develop lightRadio in the right direction. The knowledge we gain from implementing lightRadio to support the delivery of mobile broadband services to 650 million people will help us to meet the growing demand for services across the globe.

                                                                                                                          The co-creation agreement was signed by Bill Huang, president of China Mobile Research Institute and Wim Sweldens, president of Alcatel-Lucent Wireless Division, on January 13 at Alcatel-Lucent’s Bell Labs headquarters in Murray Hill, New Jersey.  Li Zhengmao, Vice President of China Mobile, and Jeong Kim, President of Alcatel-Lucent Bell Labs attended the signing ceremony.

                                                                                                                          Under the terms of the agreement, China Mobile engineers have already begun working with Alcatel-Lucent’s R&D team in the company’s lab in Stuttgart Germany.  The two companies will co-work on a series of lightRadio joint development projects including the cube-based radio, baseband unit (BBU) pooling and redefining the radio architecture. By bringing together talents from both companies, these projects will support China Mobile’s evolving business initiatives, including the introduction of high-speed TD-LTE mobile broadband technology, encourage idea-generation and facilitate the smooth commercial implementation of lightRadio.

                                                                                                                          Day 4: Alcatel-Lucent at MWC 2012 – Rise above the data storm [AlcatelLucentCorp YouTube channel, March 2, 2012]

                                                                                                                          Video of Day 4 at Mobile World Congress 2012. The big discussion at MWC is about the data storm, the demand for mobile broadband services driven by the customers and anytime, anywhere access to these services. … How operators rise above the data storm? For capacity (serving more users in the peak hours), for having lower costs per bit (to get to the mass market), and for monetizing more often (in 65% of time or more the networks are not in a peak). How they do that? They do that with lightRadio which gives them an IP platform, mobile broadband platform end-to-end. … Best infrastructure technology 2012 goes to lightRadio and the Cube. … “This thing has transformed our company. It has transformed the way that we develop products. It has trasformed the way people looked at us. And this will for the long period to come be the symbol of the new Alcatel-Lucent.” — Ben Verwaayen, CEO, Alcatel-Lucent.

                                                                                                                          MWC: The fastest show on Earth [by Ben Verwaayen, CEO, Alcatel-Lucent, March 1, 2012]

                                                                                                                          And the GSMA award for best infrastructure technology goes to... lightRadio!

                                                                                                                          And the GSMA award for best infrastructure technology goes to… lightRadio!

                                                                                                                          MWC, the fastest show on earth for anybody who is somebody in the telecoms world, is always an amazing event.

                                                                                                                          What is clear this year is that the world is flatter than ever before. Innovation is coming from all corners of the globe and there is no region that is excluded from the information and video revolution.

                                                                                                                          As a result players are on the move. Policy makers, regulators, operators, technology providers, service providers, application developpers, all are chasing the customer driving the change.

                                                                                                                          She happens to be 14 year old and she was dearly missed at the exhibition. Her focus is services, video, chatting, facebooking on multiple screens.

                                                                                                                          She wants to be identified as a person, recognized for her preferences and protected against undue approaches.  She doesn’t care about cloud or tablet or smartphone, she wants cool services on a cool device and be able to afford it.

                                                                                                                          There are so many that agree with her that the market dynamics are changing worldwide.

                                                                                                                          Alcatel-Lucent had a great win in Barcelona. We won the infrastructure of the year award for lightRadio, our cubesized basestation, that performed in real traffic wonders for Telefonica. Customers loved the stand, they agreed with the need to make the network relevant in the journey ahead. We have never seen so much interest in our latest portfolio of Services, Applications and Products.

                                                                                                                          So, days packed, staff worked 24/7 but it was a great experience.

                                                                                                                          Ben

                                                                                                                          Details of the lightRadio technology (copied from the earlier post: Good TD-LTE potential for target commercialisation by China Mobile in 2012 [July 13, 2011 – Feb 8, 2012])

                                                                                                                          lightRadio: Alcatel-Lucent at “Best Practice Live” virtual conference [July 5, 2011]

                                                                                                                          lightRadioTM is a disruptive Wireless Architecture that enables operators the opportunity to develop next generation converged 2G/3G/LTE Radio Networks. Valérie Layan – VP Wireless Solutions EMEA at Alcatel-Lucent outlined how this unique solution offers a dramatic new way of building networks that will enable Macro and Small Cell integration, offer Opex savings of more than 50% compared to Classic BTS design and set the course for Wireless & Wireline convergence.

                                                                                                                          lightRadio Press Coverage

                                                                                                                          LIGHTRADIO CONNECTS THE WORLD [June 15, 2011]

                                                                                                                          The world’s first long-distance, high-quality mobile video-call using lightRadio™ – a breakthrough system pioneered by Alcatel-Lucent (Euronext Paris and NYSE: ALU) to transform the economics and efficiency of mobile telephony– has successfully taken place from the historic desk of Alexander Graham Bell.

                                                                                                                          Industry executives, technology leaders and analysts witnessed the inaugural lightRadio video call made from the headquarters of Bell Labs, the innovation engine of Alcatel-Lucent and now home to Graham Bell’s desk, from which he made the first-ever long-distance phone call.

                                                                                                                          Chris Lewis, Group Vice President of industry analysts IDC, hosted the call from Bell Labs in Murray Hill, New Jersey, connecting with Ben Verwaayen, Chief Executive of Alcatel-Lucent in Paris, and delegates at a business conference in Miami.

                                                                                                                          lightRadio is the name of a family of technologies which are set to transform mobile communications, improving the quality of network services for consumers while dramatically reducing the size, carbon footprint and energy consumption of mobile base stations.

                                                                                                                          After participating in the call, Ben Verwaayen, said: “We have taken lightRadio from the drawing-board to a fully working system, creating an entirely new system to connect customers around the world.”

                                                                                                                          The launch of lightRadio will help address exploding demand for mobile broadband services and increasing global consumption of wireless content. This has been fuelled by the adoption of smartphones and the popularity of video applications, social networking and mobile gaming services– all requiring wireless service providers to provide greater speed and capacity everywhere.

                                                                                                                          Network operators such as France Telecom/Orange, Telefonica and China Mobile are now engaged with Alcatel-Lucent in co-creating the market implementation of lightRadio. The system is expected to deliver significant operational savings for carriers and infrastructure owners by marking an end to the existing system of complex base stations and large cell towers.

                                                                                                                          This week’s inaugural call demonstrates lightRadio’s ability to handle high levels of data, meeting demand from customers increasingly using mobile video on Internet-networks. Among breakthroughs promised by the system, it will reduce mobile network energy consumption by 50% – compared with current equipment; enable roll-out of mobile broadband services to new marketsusing sustainable-power sources; and deliver major savings for operators.

                                                                                                                          Alcatel-Lucent predicts that lightRadio will help cut the cost of mobile infrastructure site, energy consumption, operations and maintenance. Bell Labs estimates that the total cost of ownership of mobile networks, the sum spent by mobile operators on access systems, reached 150 billion Euros in 2010.

                                                                                                                          More information about Alcatel-Lucent’s lightRadio portfolio can found online at http://www.alcatel-lucent.com/lightradio.

                                                                                                                          China Mobile and Alcatel-Lucent partner to develop next-generation RAN [Feb 15, 2011]

                                                                                                                          Alcatel-Lucent today announced it has signed a Memorandum of Understanding (MOU) with China Mobile, the world’s largest mobile operator and a leader in TD-SCDMA and TD-LTE, for the development of a next-generation radio access network (RAN). The MOU was signed by Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s flagship company in China.

                                                                                                                          Alcatel-Lucent and China Mobile will jointly launch technical and economic studies and investigate the technologies essential to build a centralized, collaborative, Cloud-based RAN (C-RAN) in order to set new standards for cost-effectiveness, network intelligence and energy-efficiency (“green”). The C-RAN will provide a common platform for multi-mode wireless standards such as GSM, 3G, and LTE, enabling to significantly improve network quality and coverage, reduce transmission resource consumption and lower OPEX by up to 50% and CAPEX by 15%.

                                                                                                                          Rajeev Singh-Molares, president of Alcatel-Lucent’s activities in Asia-Pacific said: “The partnership with China Mobile is directly addressing the challenges of high energy costs, explosion of mobile video and sustainable development. By helping them replace traditional network designs with flexible cloud-like architectures, we are preparing the future and help show the way in terms of technology and economic models.”

                                                                                                                          The strategic partnership for C-RAN will leverage Alcatel-Lucent’s recently-announced lightRadio, a breakthrough in mobile and broadband infrastructure to streamline and radically simplify mobile networks. Pioneered by Bell Labs, Alcatel-Lucent’s research and development arm, the new lightRadio system will dramatically reduce operating costs, technical complexity and power consumption.  This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically reducing and simplifying them.

                                                                                                                          lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and distributed through the antenna or the network for cloud-like processing.  Additionally the various cell site tower antennas are combined and shrunk into a single small powerful, Bell Labs-pioneered multi frequency, multi standard (2G, 3G, LTE) device that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

                                                                                                                          The partnership with China Mobile also reflects Alcatel-Lucent’s strong commitment to sustainable development and to Green as testified, in particular, by its leading role in theexternal linkGreenTouch™ Consortium, a global research initiative dedicated to dramatically improving the energy efficiency of information and communications technology (ICT) networks by a factor of 1,000. GreenTouch™ recently presented a Large-Scale Antenna System proof of concept offering the potential for tremendous energy savings thanks to its novel wireless transmission techniques.

                                                                                                                          Alcatel-Lucent maps the future of mobile technology [Feb 7, 2011]

                                                                                                                          Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced lightRadio™, a breakthrough in mobile and broadband infrastructure that streamlines and radically simplifies mobile networks. The solution was unveiled at a major press launch event in London supported by partners Freescale and HP.

                                                                                                                          Pioneered by Bell Labs, Alcatel-Lucent’s unique research and development arm, the new lightRadio system will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them.

                                                                                                                          lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

                                                                                                                          Alcatel-Lucent’s new lightRadio product family, of which initial elements ready to begin customer trials in the second half 2011, provides the following benefits:

                                                                                                                          • Improves the environment:lightRadio reduces energy consumption of mobile networks by up to 50% over current radio access network equipment. (As a point of reference, Bell Labs research estimates that basestations globally emit roughly 18,000,000 metric tons of CO2 per year). Also, lightRadio provides an alternative to today’s jungle of large overcrowded cell site towers by enabling small antennas anywhere.
                                                                                                                          • Addresses digital divide: By reducing the cell site to just the antenna and leveraging future advances in microwave backhaul and compression techniques, this technology will eventually enable the easy creation of broadband coverage virtually anywhere there is power (electricity, sun, wind) by using microwave to connect back to the network.
                                                                                                                          • Offers major savings for operators: Thanks to lightRadio’s impact on site, energy, operations and maintenance costs; when combined with small cells and LTE, this new solution can lead to a reduction of total cost of ownership (TCO) of mobile networks up to 50% (as a point of reference, Bell Labs estimates that TCO spent by mobile operators in mobile access in 2010 was 150 billion Euros).

                                                                                                                          Ben Verwaayen, CEO of Alcatel-Lucent, said: “lightRadio is a smart solution to a tough set of problems: high energy costs, the explosion of video on mobile, and connecting the unconnected.”

                                                                                                                          Alain Maloberti, Senior Vice President, Network Architecture and Design, France Telecom/Orange said: “Alcatel-Lucent’s new vision and strategy of mobile broadband is quite exciting: the new wireless network architecture and innovative radio proposal will potentially help us to achieve significant operating cost savings and be better prepared for future challenges. We look forward to work closely with Alcatel-Lucent to explore and test this new approach.”

                                                                                                                          Tom Sawanobori, VP Technology Planning, Verizon Wireless, said: “Verizon looks forward to learning more about the benefits of lightRadio technology and how they could be applied as we continue to expand and evolve our LTE network.”

                                                                                                                          Alcatel-Lucent is also in advanced planning with China Mobile as well as a number of other carriers around the globe around co-creation and field trials of the lightRadio solution.

                                                                                                                          Alcatel-Lucent studies have concluded that the total addressable opportunity for the multi-technology radio market1, which lightRadio addresses, will be over 12 billion Euros in 2014, representing more than 55% of the total wireless RAN market. The cumulative total addressable market will be over 100 billion Euros from 2011-2018.

                                                                                                                          Alcatel-Lucent’s lightRadio portfolio integrates a number of breakthrough innovations and technologies from Alcatel-Lucent’s Bell Labs research arm and ecosystem of companies:

                                                                                                                          Market Impact Technology Innovation
                                                                                                                          A new generation of active antennas allows vertical beam-forming that improves capacity in urban and suburban sites by about 30%, supports all technologies (2G, 3G, and LTE) and covers multiple frequency bands with a single unit. lightRadio cube – A unique Bell Labs antenna technology, the lightRadio Cube includes an innovative diplexer type, radio, amplifier, and passive cooling in a small cube that fits in the palm of the hand.
                                                                                                                          By moving former basestation components to a System on a Chip (SOC), lightRadio places processing where it fits best in the network – whether at the antenna or in the cloud. System-on-a-chip (SoC) jointly developed with Freescale Semiconductor, integrates intelligent software from Alcatel-Lucent onto fully remotely programmable state-of-the-art hardware.
                                                                                                                          The economics of radio networks are substantially improved by reducing the number and cost of fiber pairs required to support the traffic between the antenna and the centralized processing in the cloud. Unique compression algorithms provide nearly a factor of three compression of IQ sample signals.
                                                                                                                          Matching of load to demand through ‘elastic’ controller capacity, delivered on sets of distributed and shared hardware platforms, will improve cost, availability, and performance of wireless networks. Virtualized processing platforms. Alcatel-Lucent will use innovative virtualization software and will collaborate with partners like HP to enable a cloud-like wireless architecture for controllers and gateways.

                                                                                                                          The lightRadio Product Family The new Alcatel-Lucent lightRadio product family is composed of the following components: Wideband Active Array Antenna, Multiband Remote Radio Head, Baseband Unit, Controller, and the 5620 SAM common management solution. The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. Additional product family members will be available over 2012, 2013 and 2014.

                                                                                                                          For detailed information on these elements please as well as a webcast replay of today’s press conference please visit http://www.alcatel-lucent.com/lightradio(replay available at 2:30 pm GMT). The lightRadio approach and technology path will be shown and explained further at Mobile World Congress in Barcelona on 14-17 February.

                                                                                                                          [1] The multi-technology radio market consists of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies, in the same platform.

                                                                                                                          “Alcatel-Lucent’s lightRadio approach is a revolutionary step in evolving traditional telecommunication networks to more heterogeneous networks with higher capacity and lower cost,” said Lisa Su, Senior Vice President and General Manager of Freescale’s Networking and Multimedia Group. “Freescale is collaborating with Alcatel-Lucent to provide the chip-based architectures through our new system-on-chip technology that supports the highly-flexible, multi-standard, programmable capability required to make lightRadio a reality.”

                                                                                                                          “Communication service providers will be better able to meet the shifting and growing demands placed on their networks as a result of the new lightRadio product family from Alcatel-Lucent,” said Sandeep Johri, vice president, Strategy and Solutions, Enterprise Business, HP. “As part of the lightRadio evolution, HP intends to work with Alcatel-Lucent in a co-creation fashion around the use of cloud and virtualization technologies in the mobile access space.”

                                                                                                                          “The day has finally come when service providers need to take a serious look at the road ahead in terms of technology and their economic models,” said Phil Marshall of Tolaga Research. “To survive and thrive, service providers must evolve network designs, embrace small cell sites and all-IP architectures and replace traditional network designs with flexible cloud-like architectures that can truly meet the data demands of the future.”

                                                                                                                          The Disappearing Mobile Masts and Towers [Feb 7, 2011]

                                                                                                                          The looming global gridlock in mobile communications promises to be averted following the launch today of pioneering technology which will remove the bottlenecks constraining mobile networks and help deliver universal broadband coverage.

                                                                                                                          Alcatel-Lucent (Euronext Paris and NYSE: ALU), the leading network technology group, has joined forces with industry partners to develop lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world.

                                                                                                                          Ben Verwaayen, Chief Executive Officer of Alcatel-Lucent, said: “Today’s and tomorrow’s demands for coverage and capacity require a breakthrough in mobile communications.”

                                                                                                                          He added: “lightRadio will signal the end of the basestation and the cell tower as we know it today.”

                                                                                                                          Governments and regulatory bodies are expected to welcome the technical development, which will help meet targets for universal broadband access by laying the foundation to address the so-called “digital divide.”

                                                                                                                          Other major benefits from lightRadio™ include:

                                                                                                                          • Shrinking the carbon footprint of mobile networks by over 50%
                                                                                                                          • Reducing the Total-Cost-of-Ownership of mobile operators by up to 50%
                                                                                                                          • Improving end user services by significantly increasing bandwidth per user thanks to the deployment of small antennas everywhere

                                                                                                                          Wim Sweldens, President of Alcatel-Lucent’s Wireless Division said: “lightRadio will help mobile operators evolve their networks to address the mobile broadband deluge.”

                                                                                                                          lightRadio represents a new approach where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network.

                                                                                                                          lightRadio also shrinks today’s clutter of antennas serving 2G, 3G, and LTE systems into a single powerful, Bell Labs-pioneered antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

                                                                                                                          The innovation coincides with growing demand for third-and-fourth generation mobile networks and devices, involving the mass adoption of wireless television services and other forms of broadband content. The total addressable market for the radio technology necessary to serve such networks and devices is expected to exceed €100bnover the next seven years.

                                                                                                                          Alcatel-Lucent announced the lightRadio™ technical specifications and launch timetable at an industry event in London today. Visit http://www.alcatel-lucent.com/lightradiofor product press release and link to event replay (available at 2:30 GMT).

                                                                                                                          [1] This is the total addressable market for multi-technology radio solutions that consist of radio access base stations that simultaneously support 2G, 3G, and LTE, and multiple frequencies in the same platform

                                                                                                                          Freescale introduces industry’s first multimode wireless base station processor family that scales from small to large cells [Feb 14, 2011]

                                                                                                                          Freescale Semiconductor – the communications processing leader and provider of industry-leading DSP technology – is transforming the future of wireless infrastructure equipment with the introduction of a highly integrated base station-on-chip portfolio built on advanced heterogeneous multicore technology. Freescale’s new QorIQ Qonverge seriesis the first scalable family of products sharing the same architecture to address multi-standard requirements spanning from small to large cells.

                                                                                                                          The explosion of smart connected devices with increasing data and video content has created a mobile data tsunami, requiring OEMs and carriers to dramatically boost network performance while controlling capital expenditure costs, increasing power efficiency and supporting the emergence of 4G technologies.

                                                                                                                          The QorIQ Qonverge portfolio of base station-on-chip products is based on a common architecture and integrates communications processing, digital signal processing and wireless acceleration technologies into a single system-on-chip in various configurations optimized for next-generation femtocell, picocell, metrocell and macrocell base stations. Advanced process technology and exceptional integration allow the convergence of multiple functions traditionally performed on separate FPGAs, ASICs, DSPs and processors to be incorporated on a single device. This integration lowers part counts and delivers significant power, cost and footprint reductions for base stations. The common architecture spanning from femto cells to macro cells optimizes R&D investments and software reuse.

                                                                                                                          “The current explosion in mobile data traffic worldwide provides unique challenges and opportunities for wireless infrastructure equipment providers as they race to increase capacity and capability,” said Lisa Su, senior vice president and general manager of Freescale’s Networking and Multimedia Group. “Freescale’s highly integrated QorIQ Qonverge portfolio enables base station manufacturers to provide a dramatic, step-function improvement in performance, power and cost in a single, flexible architecture.”

                                                                                                                          QorIQ Qonverge technology can deliver 4x cost reduction and 3x power reduction for LTE + WCDMA macro base stations, and 4x cost and power reductions for LTE + WCDMA pico base stationswhen compared to wireless infrastructure equipment powered by discrete silicon products.

                                                                                                                          “By integrating multiple industry-leading technologies into one scalable product line, Freescale’s QorIQ Qonverge portfolio delivers significant innovation that advances the state of wireless networking at this pivotal time for the industry,” said Will Strauss, president and principal analyst of Forward Concepts. “The QorIQ Qonverge portfolio presents a unique solution and strengthens Freescale’s position as a processing technology leader in the wireless infrastructure space.”

                                                                                                                          Freescale leveraged its broad R&D scale, deep application knowledge of the wireless space and extensive IP portfolio to develop the new product family. QorIQ Qonverge processors combine multiple Power Architecture® cores and high-performance StarCore DSPs with a MAPLE multimode baseband accelerator, packet processing acceleration engines, interconnect fabric and next-node process technology. The portfolio’s products support multiple standards, including GSM, LTE – FDD & TDD, LTE-Advanced, HSPA+, TD-SCDMA and WiMAX. In addition, the family’s flexible architecture allows support for evolving standards with software upgrades.

                                                                                                                          “Freescale’s innovative QorIQ Qonverge platform provides the integration, performance, energy efficiency and unmatched scalability that our new lightRadio™ product portfolio requires,” said Wim Sweldens, president of Alcatel-Lucent’s Wireless Division. “Game-changing products like lightRadio disaggregate the base station between the network and the wideband active antenna, produce dramatic cost savings and need components that provide giant leaps forward such as Freescale’s new QorIQ Qonverge technology.”

                                                                                                                          “Freescale’s QorIQ Qonverge product line gives us the flexibility to cost-effectively address the widest possible small cell market by providing a common architecture and multimode capabilities, along with the programmability for us to incorporate our own advancements,” said Michael Clark, Airvana’s general manager for femtocell business. “We look forward to working with Freescale to help accelerate the deployment of small cells in next-generation wireless networks.”

                                                                                                                          According to analyst firm Infonetics, radio access network base station spending is projected to be $197 billion worldwide over the next four years.

                                                                                                                          Complete solutions

                                                                                                                          Customers can develop best-of-breed solutions with ease by combining their own differentiated IP with off-the-shelf components from Freescale and ecosystem partners. Freescale has assembled a rich ecosystem of technology leaders focused on wireless applications. Products and services from these partners can be combined with third party tools, as well as Freescale’s CodeWarrior technologies and VortiQa application software. This ecosystem can provide ODMs and OEMs Layer 1 – 4 software, transport and security stacks, RF technologies, test and measurement capabilities and ODM solutions.

                                                                                                                          A development platform based on the P2020-MSC8156 AMC bundled with partner software and RF solutions is available immediately for rapid software development. In addition, Freescale offers a wide portfolio of GaAs MMICs and LDMOS RF solutions for consumer and enterprise pico and femto cells.

                                                                                                                          QorIQ Qonverge products

                                                                                                                          The QorIQ Qonverge portfolio includes four distinct products optimized for small cell (femto and pico) and large cell (metro and macro) applications. It also supports remote radio head and emerging cloud-based radio access network (C-RAN) configurations.

                                                                                                                          The first products in Freescale’s QorIQ Qonverge multicore portfolio are built in 45-nm process technology and planned for availability in the second half of 2011. The products are the PSC9130/PSC9131 femto SoCs and PSC9132 picocell/enterprise femto SoC devices. Freescale plans to introduce portfolio members targeting larger cell (metro and macro) base stations built in 28-nm process technology later this year.

                                                                                                                          PSC9130/31 Femto SoC

                                                                                                                              8-16 users (WCDMA, LTE, CDMA2K) and simultaneous multimode
                                                                                                                              2×2 MiMO
                                                                                                                              1x e500 and 1x SC3850
                                                                                                                              MAPLE-B2F acceleration

                                                                                                                          PSC9132 Pico/Enterprise Femto SoC

                                                                                                                              32-64 users (WCDMA, LTE) and simultaneous multimode
                                                                                                                              2×4 MiMO
                                                                                                                              2x e500 and 2x SC3850
                                                                                                                              MAPLE-B2P acceleration

                                                                                                                          About Freescale Semiconductor

                                                                                                                          Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial and networking markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing and sales operations around the world. www.freescale.com.

                                                                                                                          Supporting Partner Quotes Follow

                                                                                                                          Enea “Enea currently provides a breadth of leading software solutions to support Freescale’s extensive portfolio of networking IP,” said Marcus Hjortsberg, vice president of Marketing for Enea. “We look forward to playing a role in unleashing the innovative capabilities of Freescale’s new QorIQ Qonverge hybrid multicore portfolio.”

                                                                                                                          Green Hills “With a long history of optimized support for Freescale’s multicore and multiprocessor platforms, we are excited to see Freescale’s next-generation wireless base station solution,” said Dan Mender, vice president of Business Development, Green Hills Software. “QorIQ customers use our multicore development tools and scalable real-time operating systems, MULTI and INTEGRITY, to conquer today’s multicore challenges and we look forward to supporting them as they adopt the QorIQ Qonverge portfolio.”

                                                                                                                          Mentor Graphics “The integration of StarCore DSP technology with Power Architecture cores in the new Freescale QorIQ Qonverge portfolio is a major advancement for the wireless industry. We see great potential for this class of heterogeneous multi-core designs,” said Glenn Perry, general manager of the Mentor Graphics Embedded Software Division. “The Mentor Embedded Linux platform for Freescale devices combined with CodeSourcery software development tools will enable our mutual customers to develop advanced, innovative and scalable systems with increased performance and power efficiency.”

                                                                                                                          Aricent “We are thrilled to be partnering with Freescale to accelerate development of new best-in-class solutions in the wireless infrastructure market,” said C.P. Murali, executive vice president and general manager at Aricent. “Our comprehensive suite of software frameworks and product engineering services enable customers to rapidly introduce innovative solutions based on Qonverge technology.”

                                                                                                                          Continuous Computing “We are proud to be a member of Freescale’s technology partner program and for Freescale to be a member of the Continuous Computing Network,” said Todd Mersch, director of Product Line Management at Continuous Computing. “Together we offer customers a complete range of femto to macro base station solutions consisting of Trillium wireless software and the latest advances in the QorIQ Qonverge portfolio of processors.”

                                                                                                                          Critical Blue ”Freescale’s QorIQ Qonverge platform is architecturally very innovative. Meeting next-generation network speed requirements will require software developers to make knowledgeable choices in application partitioning and task allocation to the different types of cores on these platforms,” said David Stewart, chief executive officer of CriticalBlue. “The development program we have ongoing with Freescale will ensure that our Prism tool has all the capabilities needed to support a smart methodology for software developers, enabling them to get the maximum benefit from targeting the QorIQ Qonverge platform.”

                                                                                                                          L&T Infotech “L&T Infotech is excited to collaborate and build world-class wireless solutions based on Freescale’s QorIQ Qonverge portfolio,” said Sudip Banerjee, chief executive officer for L&T Infotech. “Our end-to-end telecom proficiency spans the entire wireless domain, with proven expertise on LTE/WiMAX, multicore technologies, network security and optical transport networks, ultimately enabling accelerated time-to-market for our client’s products.”

                                                                                                                          Signalion “We are pleased to support Freescale’s QorIQ Qonverge portfolio with our world-class wireless test technologies to ensure high-performance equipment, service and end-user experiences,” said Tim Hentschel, managing director for Signalion GmbH. “Freescale is charting new territory with the QorIQ Qonverge hybrid portfolio that promises to transform the future of wireless infrastructure equipment.”

                                                                                                                          Tata-Elxsi “The introduction of theQorIQ Qonverge portfolio means OEMs now have a single-architecture, compatible family of products to address all their base station design needs,” said Shyam Ananthnarayan, head of the Communications Business Unit at Tata Elxsi. “As a key member of Freescale’s rich ecosystem, Tata Elxsi will offer market-leading LTE eNodeB software stacks optimized to ease customers’ development of best-of-breed solutions based on Qonverge technology.”

                                                                                                                          Wireless support and network functions converge in QorIQ Qonverge processors [By Tom Thompson, June 16, 2011]

                                                                                                                          Wireless communication seems ubiquitous these days–until you wander into a dead zone and lose the network connection to your laptop, tablet, or mobile phone. Telco carriers are working hard to eliminate such areas by installing more macrocell towers. Sometimes installing one of those big bruisers in an area isn’t possible, so the carriers fill in the coverage gaps by scaling down. Scaling down in this case means building smaller wireless installations, such as microcell (also known as metrocell), picocell, and femtocell base stations.

                                                                                                                          You don’t have to be a rocket scientist to realize that deploying such a diverse array of gear can be a nightmare, both in terms of hardware design, embedded software development, and support. Every base station has various wireless formats to manage, and the smaller base stations must also implement certain wired backhaul technologies such as Ethernet and ET/T1 so that they can connect to the carrier’s infrastructure. One way to alleviate this headache of multiple base station designs is to reduce the different types of hardware used. For this scheme to work, however, the signal processing capabilities of a DSP and the networking functions of an application processor must converge into one unified part.

                                                                                                                          Freescale happens to be well-positioned to provide such a converged solution. First, the company makes its StarCore DSPs, which are 32-bit multicore processors engineered for high data processing throughput and support for a variety of wireless protocols. Second, the company makes high-performance network processors, notably those that comprise its QorIQ Processing Platform. These are 32-bit processors based on a low-power, high-performance Power Architecture core that manages several high-speed communications interfaces. Variants of both the StarCore and Power Architecture families feature fewer cores or lack hardware accelerators, which enable them to hit a specific price point or power consumption target.

                                                                                                                          Freescale’s convergence strategy is simple in concept, yet presented an engineering challenge. First, you take the core subsystems of these two processors and place them on a single chip. Next, surround the cores with a bevy of enhanced communications interfaces. Finally, knit all of these elements together with a high-speed switching fabric. The result is the QorIQ Qonverge processor, a system that is essentially a base station on a chip. Let’s delve deeper into the microarchitecture of the QorIQ Qonverge and see how it offers a comprehensive solution.

                                                                                                                          A Tale of Two Processors

                                                                                                                          The block diagram in Figure 1 depicts the major logic blocks that make up the QorIQ Qonverge PSC3191E, a part suitable for femtocell and picocell base station designs. Figure 1

                                                                                                                          Figure: Block diagram of the QorIQ Qonverge PSC9131E processor.

                                                                                                                          The StarCore subsystem consists of an SC3850 DSP core that has six execution units (four data ALUs, and two address units) that operate in parallel to retire six instructions simultaneously per clock. The ALUs support integer and fractional arithmetic, including multiply-accumulate (MAC) and other sophisticated instructions. The core is therefore capable of reading, processing, and writing a continuous stream of data. The subsystem has its own internal L1/L2 caches, an MMU, an interrupt controller, and timers.

                                                                                                                          The Power Architecture subsystem consists of an e500 core, which is a superscalar processor with multiple execution units that can issue and retire two instructions per clock cycle. It has its own internal L1/L2 caches, an interrupt controller, and timers.

                                                                                                                          Each core has separate 32 KB instruction and data caches to reduce latency and boost throughput. The Harvard architecture implementation of these caches requires more transistors, but it helps to ensure that the cores receive a continuous stream of data and instructions. The unified L2 caches can be configured so that a portion of them acts as a low-latency L2 memory for time-critical data or variable storage.

                                                                                                                          Both subsystems would grind to a halt if they could not access memory or peripheral devices rapidly. To minimize this bottleneck, a high-performance communications interface, known as the Chip-Level Arbitration and Switching System (CLASS) fabric was used. This high-bandwidth, low-latency switching fabric is a fully-pipelined, device interconnect that provides direct access to the resources of the subsystems and on-chip peripherals.

                                                                                                                          The DMA engine, which can be programmed by either core, uses the CLASS fabric to manage data transfers. It has four bidirectional channels. Off-chip memory is accessed through a DDR memory controller. The controller supports DDR3/DDR3L devices, and can manage a 32-bit interface at a maximum 800 MHz data rate.

                                                                                                                          Hardware Gives a Hand

                                                                                                                          As you can see, the QorIQ Qonverge processor is one busy piece of silicon. Among its many duties is to process various wireless formats and encrypt communications sessions. These wireless and encryption algorithms are complex and require substantial processing power. While they can be done in software, the QorIQ Qonverge processor has dedicated execution units that can off-load the computational demands of these algorithms from the core subsystems.

                                                                                                                          The Multi Accelerator Platform Engine for Femto BaseStation Baseband Processing (MAPLE-B2F) unit provides hardware acceleration for baseband algorithms such as channel decoding/encoding, UTMS chip rate processing, and LTE uplink/downlink processing. It also accelerates the computation of Fourier transforms, matrix inversions, CRC algorithms, convolution and filtering operations, Turbo encoding/decoding, and Viterbi decoding. It is a second-generation design that builds upon an established predecessor used in certain StarCore DSPs.

                                                                                                                          For encryption duties there is the security engine, a cryptographic and assurance acceleration unit. It uses a job queue interface that can schedule multiple cryptographic tasks in parallel, and its multiple accelerators can be shared among different applications. In concert with the DMA engine, this module can use scatter/gather operations to collect data that is distributed throughout memory. The module has hardware accelerators for public key, message digest, ARC four, SNOW 3G f8 and f9, and Katsumi cryptographic operations. It also has accelerators that manage DES, AES, and CRC operations, and it supports a variety of cryptographic authentication schemes.

                                                                                                                          Note that acceleration capabilities are not limited exclusively to these particular modules. Other modules can accelerate a subset of their functions. For example, the Ethernet controller can off-load and accelerate certain TCP/IP stack operations such as IP header recognition and checksum, plus TCP/UDP checksum and verification.

                                                                                                                          Smart Controllers

                                                                                                                          The PSC9131E has several controllers that manage complex I/O operations concurrently. The Antenna Interface Controller (AIC), as its name implies, handles transactions between the processor and an external Radio Frequency (RF) subsystem. It supports CDMA, WCDMA-DD, LTE-FDD, LTE-TDD, and GSM (receive only) network modes. Data received from the transceiver is reformatted and stored by the AIC into system memory or in the MAPLE-B2F unit. Data to be transmitted is transferred by DMA to the AIC where it frames the data for the proper network format and sends it to the transceiver. The AIC can handle up to a maximum of four data lanes, depending upon the wireless format in use.

                                                                                                                          The Ethernet controller features two enhanced Gigabit Ethernet interfaces that can operate at speeds of 10 Mbps, 100 Mbps and 1 Gbps. These interfaces are IEEE 802.3, 802.3u, 820.3x, 802.3z, 802.3ac, and 802.3ab compliant. As mentioned previously, the controller can accelerate the identification and retrieval of standard and non-standard protocols present on the Ethernet connection.

                                                                                                                          The USB controller is USB revision 2.0 compliant and can function as both a host and a device controller. As a host, it supports low-, full-, and high-speed transfer rates. It contains its own DMA engine that reduces the interrupt load on the processor and minimizes the bus bandwidth necessary to service any USB transactions.

                                                                                                                          In summary, these several controllers provide sophisticated wireless, Ethernet, and USB services, yet without adding a considerable burden to the processor’s operation, especially when it is conducting network/wireless routing.

                                                                                                                          Ports Aplenty

                                                                                                                          The PSC9131E provides a number of ports that enable you to connect a large cast of supporting peripherals to the processor. These are:

                                                                                                                          • Enhanced SPI
                                                                                                                          • Two DUARTs
                                                                                                                          • Integrated Flash memory Controller (IFC)
                                                                                                                          • Two I2C controllers
                                                                                                                          • General-Purpose I/O (GPIO) interface with 32 bidirectional ports
                                                                                                                          • Universal Subscriber Identity Module (USIM) interface for communicating with a SIM card
                                                                                                                          • PWM optimized to generate sound
                                                                                                                          • Enhanced Secured Digital Host Controller (eSDHC) for interfacing to SD/SDIO/MMC cards

                                                                                                                          As a unit, QorIQ Qonverge processors represent a fusion of many existing, field-proven Freescale technologies. However, the resulting processor is far greater than the sum of its parts. Since the QorIQ Qonverge processor implements the level-1, -2, and -3 processing layers required for network/wireless communications on-chip, it only lacks some external hardware, such as a power supply, flash memory, DRAM, Ethernet line-driver and a RF transceiver to implement a stand-alone femtocell or picocell base station. It is designed to replace both the DSP and the applications processors at the heart of many such base station designs, as shown in Figure 2. By doing so, the QorIQ Qonverge part can reduce complexity, processing latencies, and the bill of materials for a base station design.

                                                                                                                          Figure 2. The QorIQ Qonverge-based picocell design (bottom) uses fewer parts than a design based on separate DSP and application processors (top).

                                                                                                                          A Processor for Many Uses

                                                                                                                          The QorIQ Qonverge processor isn’t limited to short-range base stations, however. It can also scale up: Multicore variants can support microcell and macrocell base station designs. This allows you to assemble a range of base station designs around one part.

                                                                                                                          Besides simplifying the base station design, the QorIQ Qonverge processor also allows you to reuse existing software. For example, existing StarCore MSC8156 DSP code and P2020 application code can be migrated to the QorIQ Qonverge processor, since the cores are nearly identical. The same CodeWarrior tool suite for StarCore DSPs and CodeWarrior tools for Power Architecture can be used to write and debug the software. Furthermore, the code written for–say, a picocell base station–can be reused in microcell and macrocell base station designs. Revising the code for a multicore processor can be tricky, but you can start the process with the knowledge that the application code was stress-tested on smaller base stations. Also, Freescale’s partner, CriticalBlue, has a multicore simulation tool to assist you in this process for Power Architecture-based software. All of this adds up to be a comprehensive solution for embedded base station designs.

                                                                                                                          Turn the lightRadio on [March 8, 2011]

                                                                                                                          Development hopes to double network capacity while halving power consumption. By Roy Rubenstein.

                                                                                                                          Mobile operators face significant challenges, given the rapid growth in mobile broadband traffic. They are starting to roll out the latest mobile technology, Long Term Evolution (LTE), as yet another overlay alongside the existing wideband CDMA and GSM networks. Mobile sites are thus being crammed with antennas and basestation equipment.

                                                                                                                          The cellular network is 30 years old,” said Tom Gruba, marketing director for wireless activities at Alcatel-Lucent. “You cannot just keep adding more basestations in the network to solve the [data] capacity problem; the business model doesn’t work.” Alcatel-Lucent’s solution is lightRadio, which moves the processing power to the antenna or into the network, like cloud computing. The system vendor points out that architecture change is being industry led; what Alcatel-Lucent is claiming is that the lightRadio portfolio of products is the first to support the new architecture.

                                                                                                                          Announced in the run up to Mobile World Congress 2011, lightRadio promises to double network capacity, while halving power consumption. The lightRadio products include a wideband active array antenna that integrates the amplifier and antenna elements, a radio SoC developed with Freescale, and a multimode radio controller platform being developed with HP. Integrating the amplifier alongside the antenna achieves better coupling of the signal to the antenna. Less power is wasted, such that a smaller amplifier can be used.

                                                                                                                          Alcatel-Lucent - lightRadio The wideband active array antenna is implemented as a 6cm cube, pictured left. The wideband operation covers 400 to 4000MHz, allowing one cube to support 700MHz and 2600MHz bands. “These can be stacked, depending on how much power is needed, and you can have two or three columns to serve two or three frequencies and any technologies you want,” said Gruba.

                                                                                                                          Being an active design, the antenna boosts cell capacity through beam forming and multiple input, multiple output (MIMO) technology. Combining the amplifier-antenna with the radio chip forms a compact basestation that can be mounted on masts or within buildings. Such a combined baseband/remote radio head takes little space and avoids the need for air conditioned cooling associated with traditional basestations.

                                                                                                                          LightRadio will also enable a cloud computing style radio network architecture, where the basestation is separated from the antenna-amplifier. Traditionally, the radio amplifier was connected to the baseband via a backplane. The advent of the remote radio head led to the creation of the common public radio interface (CPRI) to connect the amplifier at the antenna with the baseband unit. With a cloud based radio network, basestations from 25 or 30 cell sites could be placed in a facility up to 40km away, with the CPRI signal carried over an optical link.

                                                                                                                          Alcatel-Lucent estimates the maximum lightRadio bit stream needed to be carried over the CPRI link is 10Gbit/s. Compression technology will reduce this by a factor of three, so operators can avoid installing a dedicated 10Gbit optical link. At the core of the baseband processing is the SoC developed with Freescale.

                                                                                                                          “Dimensioning the various aspects of the SoC is critical,” said Preet Virk, Freescale’s director, networking segment. The SoC design uses Freescale’s recently announced QorIQ Qonverge technology that supports designs spanning femtocells to macro basestations. Two devices have been announced – for femtocells and picocells – that are implemented using a 45nm cmos process. Alcatel-Lucent’s radio ic will be implemented in 28nm cmos and will be available from 2012.

                                                                                                                          Freescale is not willing to detail the basestation SoC yet, but the scalable design uses cores and IP blocks that are shipping in Freescale products, such as the e500 Power Architecture core and the StarCore SC3850 dsp as well as baseband acceleration blocks.

                                                                                                                          “Scalability comes in many forms,” said Barry Stern, Freescale’s baseband DSP & SoC products, marketing manager, wireless access division, networking and multimedia group. “From a few users to hundreds of users; from 1.25 to 20MHz bandwidths and beyond; simultaneous multimode support; and enabling OEMs to use the same software across different basestation designs, saving on development costs.”

                                                                                                                          Freescale’s femtocell SoC supports 8 to 16 users and uses an e500 core and a dsp core. The picocell SoC supports 32 to 64 users and uses two e500s and two dsp cores. Freescale’s metro and macro cell SoCs will support hundreds of users, requiring multiple dsp and cpu cores. Other features will include several DDR3 memory controllers; baseband acceleration for turbo coding, fast Fourier transforms and MIMO; and interfaces for Ethernet, PCI Express and CPRI, according to Virk.

                                                                                                                          “The SoC in the cloud is going to give us the ability to do all sorts of new things,” said Tod Sizer, head of Alcatel-Lucent’s Bell Labs’ wireless research domain.

                                                                                                                          Intercell communication

                                                                                                                          Having baseband processors concentrated at one location enables intercell communication. One application is Coordinated Multipoint (CoMP), what Alcatel-Lucent calls networked MIMO, which will be a feature of the 3rd Generation Partnership Project’s (3GPP) Release 10 cellular standard.

                                                                                                                          Currently, only one cell serves a user, even if the user is commonly near the cell edge and is sensed by adjacent cells. With CoMP, MIMO technology can be used such that different streams are transmitted between the basestations and the user, boosting throughput. And it is this technique, says Alcatel-Lucent, which will double overall capacity.

                                                                                                                          The cloud like architecture will also enable new uses that benefit energy consumption. “One we are going to see in the coming years is coordination on the basis of energy usage,” said Sizer, citing how, for example, all users could be moved to the 3G network, with the LTE basestations turned off to save power, based on time of day and subscriber requirements. “You have that capability of moving users if you have control of both technologies from a single cloud,” said Sizer.

                                                                                                                          Power consumption has become a key issue for operators, with the likes of France Telecom looking to reduce the energy consumption in its network by 15% by 2020. In turn, US operator Verizon stipulates that each new piece of equipment must be at least 20% more energy efficient than its predecessor if it is to be deployed. Alcatel-Lucent is developing a virtualised radio controller architecture as part of the portfolio, working with HP to consolidate three generations of radio controllers into one platform. In GSM, the basestation controller (BSC) connects to multiple cell sites, while a radio network controller (RNC) is used in 3G.

                                                                                                                          “If I make the BSC or RNC a software routine, the software becomes independent of the platform and I can put both functions in one box,” said Gruba. Alcatel Lucent is basing the design on an ATCA version 2 based general purpose processor design, while HP is providing server and virtualisation expertise to the controller design. Alcatel-Lucent expects to be trialling the wideband active array antenna in the autumn before it becomes commercially available in 2012.

                                                                                                                          The remaining lightRadio elements will appear from 2012 onwards. Ken Rehbehn, principal analyst at the Yankee Group, says lightRadio is arguably the most important wireless equipment development made by Alcatel-Lucent since its 2006 merger. However, he points out that other vendors are pursuing comparable strategies that might challenge much of the lightRadio vision.

                                                                                                                          lightRadio: hideous cell towers to get smaller, lose the “hut” [Feb 2011]

                                                                                                                          Cell TowerEven when they’re disguised like fake trees or church steeples, cell towers are ugly. Most have a hut at the bottom, stuffed with baseband processing gear that does the hard work of creating and decoding, say, an LTE signal. These huts often contain signal amplifiers, big units that push power up the tower to the actual antennas—and half the signal is lost just moving through the tower’s wiring. At the top, rectangular antennas bristle from the tower. One set might be for 2G support, one for 3G, and another for 4G.

                                                                                                                          Alcatel-Lucent, one of the world’s biggest wireless gear makers, turned to its Bell Labs research division to rethink this aging architecture. First step: apply the “data center” model of centralization to baseband processing and consolidate all that rack-mounted hardware into a few locations per city, each connected to the towers it serves by fiber optic cable.

                                                                                                                          Right now, a cell tower fault might require a truck roll and a drive through traffic. When the tech gets to the tower site, it might turn out to be at the top of a hotel, and permission to access it must be obtained from the site manager. Put all the processing gear in a single remote location, however, and repairs to it get cheaper and faster.

                                                                                                                          Clustering the baseband units also makes it easier to do load balancing across a region. When commuters are driving into work, for instance, the baseband cluster can turn its combined energy to handling the signal load coming from towers along the highways and train lines. During the day, processing could handle heavy downtown traffic, while it shifts focus to the suburbs in the evening. Such load-balancing doesn’t produce any additional spectrum or data throughput, but it does mean that a carrier can operate fewer baseband processors, saving the carrier cash.

                                                                                                                          The third advantage to centralizing the baseband processors is that the interconnection fabric between them can operate at high speeds, fast enough to support a standard called CoMP, or Co-ordinated Multipoint. CoMP, which is currently moving through standardization, relies on the fact that, in many locations, a user’s wireless gadget is in range of multiple towers (the closer one comes to the edge of each cell, the more towers can typically see the device).

                                                                                                                          This is usually a waste, since multiple towers spend bandwidth contacting the gadget but can’t independently deliver different data. CoMP turns it into a bonus by dividing up requested download data and using all cells in the area to deliver a different slice of it at once—akin to the way BitTorrent operates. The phone then combines the data from all the towers in the proper order. This additive approach to using different towers means that a user’s total throughput can go up substantially, but it requires centralized baseband to function.

                                                                                                                          Finally, the new lightRadio baseband bear can do software-defined protocols. Upgrading to LTE? Just upgrade the software on the baseband processor. (Traditional rack-mounted baseband processors required dedicated units for each protocol.) A new baseband chip from Freescale makes it possible, but it gets even cooler when used in conjunction with the new wideband antennas.

                                                                                                                          LightRadio uses a new antenna that, in Alcatel-Lucent’s words, collapses three radios into one. The radios are tiny cubes of 2.5 inches square, and each can operate between 1.8GHz and 2.6GHz. They use tiny amps that can be located atop the tower, built into the antenna enclosure, which keeps the amp size down and dramatically cuts down on the power loss.

                                                                                                                          These radio cubes are stacked in groups of 8 to 10 in order to make an antenna element, and when one cube in the array goes down, the others remain unaffected. (In a traditional system, the whole antenna unit would fail.) The amps cover enough different frequencies that, in many cases, simply changing the software configuration on the baseband unit can control whether each antenna offers a 2G, 3G, or 4G signal.

                                                                                                                          The antennas also do “beam forming”—fine-grained directional control over the radio signal—in both the horizontal and vertical dimension to better connect with local wireless devices. Alcatel-Lucent claims capacity improvements of 30 percent through the use of vertical beam-forming alone.

                                                                                                                          The end result of the system: lightRadio cell towers don’t need huts, they don’t need air conditioners and heaters, big amps, fans, or even local processing gear. Baseband processing moves closer to the data center model and gets cool new capabilities like CoMP and load-balancing. The system’s cost savings come from power (Alcatel-Lucent claims a 50 percent reduction), along with lower construction and site rental fees. The total macro capacity of the system should double while cutting operator costs dramatically.

                                                                                                                          Though it will take months for any carrier to roll out this or similar gear, advances like lightRadio are crucial as wireless usage continues to soar and smartphones break out of the enterprise and the technorati and into the mainstream. And by making cell infrastructure smaller, cheaper, and less power-hungry, this sort of gear brings wireless networking into reach of more people, especially in rural areas and developing countries.

                                                                                                                          Alcatel-Lucent’s lightRadio™ portfolio wins NGN magazine leadership award for transforming mobile broadband networks [May 19, 2011]

                                                                                                                          Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that its lightRadio portfolio was recognized as the outstanding new achievement in broadband Internet communications by the leading industry magazine NGN, as part of its NGN Leadership Awards contest. The awards program recognizes outstanding products, services and technologies relating to next generation networks.

                                                                                                                          “This award underlines the sweeping impact our lightRadio portfolio is having on the wireless communications industry,” said Wim Sweldens, President of Alcatel-Lucent’s Wireless activities.  “lightRadio isn’t just redefining the shape of the wireless base station, it also offers a compelling vision for what wireless networks will look like in the future.”

                                                                                                                          “This award for Alcatel-Lucent’s LightRadio is a great testament to their innovation.  They have brought to market a solution designed to solve the most critical issues facing the wireless industry, starting with the quasi impossibility to add new sites to increase capacity and improve coverage,” said Stéphane Téral, Principal Analyst, Mobile and FMC Infrastructure, Infonetics.

                                                                                                                          lightRadio™ is a new product offering from Alcatel-Lucent that will dramatically reduce operating costs, technical complexity and power consumption in mobile broadband networks. Designed to meet the long-term needs of mobile operators seeking to ensure their networks can handle increasing traffic loads, lightRadio radically shrinks and simplifies today’s base stations.

                                                                                                                          The lightRadio portfolio is designed to increase network capacity while simultaneously reducing the cost of delivery, on a per bit basis. The overarching goal is to give operators more options and a flexible path forward for the next decade.  By increasing the capacity at a reduced cost the operators can pursue a whole new market segment, the mass market. In addition, being able to use the lightRadio cube technology in various forms means Small Cells can leverage the technology and rural villages can get wireless coverage at lower costs helping to cross the digital divide.

                                                                                                                          lightRadio promises greener, simpler, lighter networks, and the benefits are substantial, including:

                                                                                                                          • 50% reduction in total cost-per-bit as compared to 3G when adding a comparable amount of capacity
                                                                                                                          • 50% reduction in energy consumption when compared to conventional ground based solutions
                                                                                                                          • Small and easily deployable – can be deployed anywhere there is a power source and broadband connection and deals with less zoning restrictions
                                                                                                                          • Nearly invisible – the WB-AAA is two products in one. It’s adding another radio in the same size form factor with no additional lease cost or further pollution of the urban skyline.

                                                                                                                          The Alcatel-Lucent “lightRadio” product family is composed of the Wideband Active Array Antenna, the Multiband Remote Radio Head, the “lightRadio” Baseband Processing, the “lightRadio” Control, and the 5620 SAM common management.  The Wideband Active Array Antenna will be trialed later this year and have broad product availability in 2012. For more information on the lightRadio portfolio please click here.

                                                                                                                          Bell Labs lightRadio™ Breakthroughs [Feb 7, 2011]

                                                                                                                          The world of mobile communications moves fast. With new mobile devices, new applications and ever-growing and changing consumer demands the wireless networks in use today have to evolve. Rather than take an incremental approach to meet these challenges, Bell Labs took a leap and developed a radically new approach to wireless technology. In order to do this, Tod Sizer, head of Bell Labs Wireless Research, challenged his team to think not just “outside the box,” but to think “inside the cube.” In six short months, the team developed a cube-shaped antenna that would fit in the palm of a hand– and was ready to test it with customers.

                                                                                                                          Tod Sizer, Head of Wireless Research for Alcatel-Lucent Bell Labs, talks about developing the lightRadio antenna module. lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection.

                                                                                                                          “There are many different types and sizes of base stations, from very small to very large, depending on where they are located, such as in an urban or rural area,” explained Sizer. “I realized that we needed to design a new and flexible type of antenna array for different environments– including one designed to the smallest possible size – ‘invisible antennas’ – in order to be flexible enough to meet the growing needs of all of our wireless service provider customers.”

                                                                                                                          A radio antenna element is a component of an antenna system that transmits signals from the wireless base station to a wireless end-user using a mobile phone, smart device or laptop. By reducing the size of the element itself, an antenna array can be scaled to fit any wireless need simply by adding more of these elements to the array.

                                                                                                                          Bell Labs wireless researchers weren’t daunted by the challenge of building something that was roughly ten percent of its current size. Several wireless research teams in Stuttgart and Ireland focused on different aspects of the problem, combining their unique areas of expertise to quickly resolve a myriad of technical challenges to reduce the antenna element’s size, improve energy efficiency and lower manufacturing expenses. The clever architecture of this new antenna is but one of the innovations critical to realizing Alcatel-Lucent’s unique lightRadio portfolio.

                                                                                                                          “We believe this unique antenna – as part of the lightRadio solution – will have a significant impact in the wireless space,” concluded Sizer.

                                                                                                                          Quick Links

                                                                                                                          Wim Sweldens presents lightRadio, a breakthrough for the mobile industry [Feb 7, 2011]

                                                                                                                          Wim Sweldens, President, Alcatel-Lucent wireless activities, talks about lightRadio™, a new system that signals the end of the mobile industry’s reliance on masts and base stations around the world. lightRadio represents a new architecture where the base station, typically located at the base of each cell site tower, is broken into its components elements and then distributed into both the antenna and throughout a cloud-like network. Additionally today’s clutter of antennas serving 2G, 3G, and LTE systems are combined and shrunk into a single powerful, Bell Labs-pioneered multi frequency, multi standard Wideband Active Array Antenna that can be mounted on poles, sides of buildings or anywhere else there is power and a broadband connection. More info: http://www.alcatel-lucent.com/lightradio

                                                                                                                          Alcatel-Lucent. Cube light Radio [Feb 18, 2011]

                                                                                                                          Highlights of lightRadio press conference [London, Feb. 7th, 2011]

                                                                                                                          Presentation of the lightRadio system which will dramatically reduce technical complexity and contain power consumption and other operating costs in the face of sharp traffic growth. This is accomplished by taking today’s base stations and massive cell site towers, typically the most expensive, power hungry, and difficult to maintain elements in the network, and radically shrinking and simplifying them. Conference guests: Stephen Carter, Wim Sweldens, Tod Sizer and Javier Garcia Gomez (Alcatel-Lucent), Lisa Su (Freescale) and Joe Weinman (HP).