Taiwan and China should work together to develop next-generation mobile telecommunication technology standards and enhance their international competitiveness, MediaTek Inc (聯發科) and China Mobile Ltd said yesterday.
The rise of mobile devices such as smartphones and tablets has increased demand for mobile data delivery and pushed Taiwan and China to accelerate the approval of the use of fourth-generation long term evolution (4G LTE) and time-division long term evolution (TD LTE) telecom networks.
Next month, the government is to allow seven firms, including Chunghwa Telecom Co (中華電信), Taiwan Mobile Co (台灣大哥大), Far EasTone Telecommunications Co Ltd (遠傳電信) and Asia-Pacific Telecom (亞太電信), to bid for spectrum that can be used to provide 4G LTE mobile communication services, while the Chinese government plans to license the TD LTE spectrum to Chinese telecoms by the end of the year.
Given that Taiwan and China have different market sizes and sectors, Taiwanese mobile device component makers should collaborate with Chinese firms to expand their business in the world’s second-largest economy, Aaron Chang (章維力), head of MediaTek’s China operations, told a forum.
Chang said China’s smartphone and tablet supply chains are more comprehensive, adding that Chinese electronics makers could collaborate with Taiwanese firms to learn cutting-edge technologies that have been developed by Taiwanese talent, as well as learn about company management and global business strategies.
“Over the past 10 years, many Taiwanese and Chinese firms have entered into partnerships to produce personal computers and mobile devices,” Chang said.
“As MediaTek is capable of designing chips used for TD LTE-supported smartphones, Chinese mobile device makers, if they work with more firms like MediaTek, will be able to develop new products more efficiently and grow their businesses more quickly,” he added.
At an annual forum attended by 300 Taiwanese and Chinese telecoms in Greater Taichung yesterday, Chang said that MediaTek created more than 300 billion yuan (US$48.6 billion) in market value for China’s smartphone market last year.
As a smartphone and tablet chip designer and manufacturer, MediaTek supplied chip products to more than 200 direct clients based in China last year, Chang said.
He also announced MediaTek’s plans to launch new products, which will be based on 28-nano meter processing technologies by the end of the year.
In order to expand its market share in the 4G LTE-powered mobile device market, the Taipei-based company plans to roll out a new “LTE-Advanced” chip product solution as soon as 2015, he added.
Meanwhile, China Mobile deputy chief executive officer Lee Cheng-mao (李正茂) told the forum that China’s TD LTE telecom network was only slightly different from Taiwan’s 4G LTE telecom network.
“With both Taiwan and China finally moving toward approving the use of LTE telecom spectrum, the two countries can together create the world’s largest mobile telecommunications market,” Lee said.
“Taiwan and China might be able to develop a fifth-generation telecom network, which will not only benefit telecoms, but also strengthen other sectors,” he added.
Currently, China Mobile has installed TD LTE equipment at more than 50,000 sites in China, Lee said, adding that the company has attracted more than 3 million TD LTE-supported mobile device users as its subscribers during the trial period.
Asked if the company plans to expand its business this year, Lee told reporters China Mobile aims to double its smartphone shipments to 120 million units this year.
He added that China Mobile did not rule out the possibility of collaborating with Hon Hai Group (鴻海集團), also known as Foxconn Technology Group (富士康科技集團), to manufacture its own brand of smartphones.
Vice Minister of Economic Affairs Woody Duh (杜紫軍) and Chinese Deputy Minister of Industrial and Information Technology Liu Lihua (劉利華) yesterday delivered the opening remarks at the forum.
Several representatives from local telecoms also participated in the forum, including Joseph Kuo (郭逸樵), managing director of the value-added services division at Chunghwa Telecom’s mobile business group; Charlene Hung (洪小玲), deputy executive of Far EasTone’s e-commerce department; and Jeff Ku (谷元宏), deputy chief operating officer of Taiwan Mobile’s consumer business group.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to