How Intel is back from the dead? Expert: buying chips-Intel, mediatek-IT news
How Intel is back from the dead? Expert: acquisition of mediatek

RBC analyst road GE·fulideman a few days ago (Doug Freedman), said that the current Intel Mobile Service struggling, you can launch an effective solution rapidly. Intel to boost chip business, mediatek so mergers and acquisitions would be the best method, and 2-3 on the necessity of carrying out the plan within a year.

Said Friedman: "Intel continues to come up with between 4 billion and 6 billion dollars into the market, rather than acquisition of mediatek, redistribution of Intel's financial resources and to solve the problem of underutilized fab, as well as directly as a rising star in the field of mobile chipsets, consolidation of mediatek's market position. ”

According to his calculations, also in 7 year chip market share to drive to 30%, using the merger method can create as much as $ 27 billion of value for shareholders, while the market on their own can only create $ 13 billion. Meanwhile, Friedman believes that mediatek is the few can successfully gain market share, merger and acquisition possibilities of the candidate. If Intel's successful takeover of mediatek, then in smart phones, tablets, SOC (SoC) market 16% the share will not be a problem. Mediatek based on years in the mobile space, after all, the accumulation of enough in a highly competitive market, by contrast, Intel has remained stagnant, currently only 4% per cent market share in the mobile device market.

The other hand, the 2013 MTK baseband IC market share increased 1 time, increased from 7.3% to 14.4%. Over the same period, its main rival, Qualcomm, it grew from 33% to 62%, has always been a leader in the industry. This year, expect Qualcomm 40% of the baseband chip market share, followed by mediatek 28%, compared with 5% of Intel's market share.