Merger and acquisition of MediaTek is Intel's only way out in the mobile field?

According to Taiwan media August 21 news, analysts suggest that if Intel wants to boost the mobile chip business, then the acquisition of MediaTek will be the best method, and may have the need to implement this plan within 2-3 years.

RBC Capital Markets analyst Doug Freedman released a research report on the 20th that Intel must adopt M&A mobile to accelerate the growth of the mobile chip business, and MediaTek will be the preferred target. He believes that it is necessary for Intel to implement M&A in the next 2-3 years, because the company spends more than $1 billion per quarter to expand the mobile and wireless markets, and it also suffers serious losses. Mergers and acquisitions is a cheaper market share. the way. Intel rose 0.47% to close at $34.50 on the 20th, and closed at a new high since July 23.

Freedman said that for Intel, instead of developing its own mobile chip market, it is better to increase market share through mergers and acquisitions to create more value for shareholders. According to his calculations, the market share of mobile chips is also increased to 30% within 7 years. The method of mergers and acquisitions can create up to 27 billion US dollars worth of value for shareholders, while the self-developed market can only create 13 billion US dollars. .

Intel acquired MediaTek

Freedman pointed out that MediaTek is one of the few candidates who can successfully obtain market share and have the possibility of mergers and acquisitions. If Intel can successfully acquire MediaTek, a 16% market share in the smartphone, tablet system single-chip (SoC) market will not be a problem.

According to Freedman's statistics, Intel's mobile chip market share is currently only 4%. In contrast, during MediaTek's 2007-2013 period, the market share of baseband chips increased from 7.3% to 14.4%, while Qualcomm, the leading player in the same time, accounted for the baseband chip market. The rate also rose from 33% to 62%.

Freedman believes that Intel's acquisition of MediaTek will allow MediaTek to further enhance its market position by enjoying Intel's most advanced but underutilized fabs.

Spreadtrum CommunicaTIons, Inc., a Chinese mobile phone chip design company, has been catching up in the baseband processor market and has replaced Intel as the world's third largest manufacturer. Technology website Electronic Weekly reported on June 25 that the technology market analyst firm Strategy AnalyTIcs showed that the market share of Qualcomm, MediaTek and Spreadtrum in the first quarter of 2014 was 66%, 15% and 5% respectively, while Intel slipped to the 4th. name.

Strategy AnalyTIcs analyst Sravan Kundojjala said that this is the first time in the past three years that Intel's baseband processor revenue market has fallen out of the top three, mainly due to the sharp decline in its 2G and 3G baseband processor shipments in Q1.

Strategy AnalyTIcs analyst Stuart Robinson said that MediaTek has quickly established itself as the second brother of Qualcomm in the baseband market. However, most of the company still relies on 2G and 3G chips, and the market share of LTE baseband chips during Q1 is zero. He reiterated that MediaTek must strive to expand the LTE market through the upcoming LTE thin data modems and application processors in order to continue its growth momentum in the past.

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