First-tier ARM chipmakers reportedly planning measures to link up with Allwinner [DIGITIMES, March 11, 2013]
Seeing that China-based ARM chipmakers, in particular Allwinner, are gaining an upper hand in the entry-level processor segment, some first-tier chipmakers are reportedly looking to form partnerships with Allwinner through a strategic alliance, investment or acquisition, according to sources from the upstream supply chain.
A few first-tier makers have even considered headhunting talent from Allwinner to damage the China-based maker’s competitiveness and complement their entry-level product lines; however, because Allwinner’s shares are held separately by several in-house R&D technicians, while the China government is unlikely to allow foreign companies to acquire Allwinner, the sources believe investment or a strategic alliance will have a better chance of success.
In the past, first-tier chipmakers were able to maintain high gross margins of around 50-60% easily, but as China-based chipmakers have started catching up in terms of computing performance, the first-tier makers may need to find a solution soon to defend their market share, the sources added.
The Mandarin based version of DIGITIMES is naming those companies as:
大陸晶片廠竄起 國際大廠擬化敵為友 評估採取聯盟、收購或挖角等策略 China chip plant their audiences to major international companies to turn enemies into friends assessment alliances, acquisitions or to lure them away strategy [DIGITIMES, March 11, 2013]
Continental ARM architecture chip factory sprung Allwinner adopt a low price strategy in 2012 shipments of to rush the scale of 60 million units, not only in the Tablet PC battlefield NVIDIA, MediaTek and Qualcomm (Qualcomm) and other international companies to bring powerful threat. …