Samsung to use its own chipsets
FRIDAY, OCTOBER 08, 1999 11:59 PM - CMP Media
Oct. 08, 1999 (Electronic Buyers News - CMP via COMTEX) -- Silicon Valley- Hoping to lessen its dependence on Qualcomm Inc., Samsung Electronics Co. Ltd. has made good on its earlier promise to develop wireless handsets based on its own chipset line.
Recently, Samsung, Seoul, Korea, announced plans to build handsets that would use an internally developed chipset-the MSM Scom4000-designed for CDMA applications. The chipset, also known as a baseband processor, supports voice processing and other functions in cell phones.
Samsung and other OEMs that make CDMA handsets must currently procure these critical components from third-party suppliers, namely Qualcomm, which has a market-leading 89% share of the segment, according to analysts' estimates. DSP Communications Inc. also sells chipsets for CDMA handsets.
In addition to building a captive supply, Samsung is developing its own devices for competitive reasons. Qualcomm at present also sells handsets based on its own chips, although the San Diego-based company recently said it is considering selling off its cell-phone business.
Still, Samsung is taking no chances. The company, which buys millions of dollars in CDMA chipsets from Qualcomm yearly, last week said it has successfully completed development of the rival baseband controller.
Samsung will use the chipset in its IMT-2000 handset line, a product that will be launched by the middle of next year.
By: Mark LaPedus Copyright 1999 CMP Media Inc. |