Ericsson enters CDMA handset market with system based on Qualcomm's chip set
Semiconductor Business News
(11/15/00, 07:33:41 PM EDT)
RESEARCH TRIANGLE PARK, N.C. -- Following delays in its code-division multiple access (CDMA) cell-phone program, Sweden's LM Ericsson here today announced that it has finally entered this market with an Internet-enabled system based on a chip set from Qualcomm Inc.
The new A1228c handset, developed at Ericsson's R&D facility in Research Triangle Park, N.C., is a full-featured, lightweight device reportedly based on the MSM5100 line of chip sets from Qualcomm of San Diego.
Analysts indicated that Ericsson is late to market in the CDMA-based handset arena, reportedly due in part to problems with its component suppliers over the years.
In the late-1990s, Ericsson was developing a CDMA handset based on a chip set from its key IC partner-VLSI Technology Inc. At that time, VLSI Technology supplied the key chip sets for Ericsson's line of cellular phones based on the global system for mobile communications (GSM) standard.
But VLSI Technology was reportedly having problems getting its CDMA-based chip set out the door. And in 1999, the company was acquired by Royal Philips Electronics of the Netherlands for about $1 billion.
Following those events, Qualcomm in late 1999 terminated its CDMA licensing agreement with the VLSI Technology/Philips duo, which, in turn, put Ericsson's CDMA-based handset program in limbo.
Later that year, Qualcomm and Ericsson ended a bitter suit over CDMA technology. As part of the terms, the companies agreed to license their respective technologies--a move that prompted analysts to believe that Ericsson would use Qualcomm's chip sets in its future cell-phone products.
Hoping to regain its momentum in this market, Philips Semiconductors, the U.S. chip arm of Royal Philips, last month announced that it would re-enter the CDMA chip set market by renewing its licensing agreement with Qualcomm (see Oct. 3 story).
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