As for mobile phone market's application structure, baseband processor module has the largest share, which accounts for 26.5%; with multimedia functions becoming more sophisticated, multimedia applied chip's share is 21.6%; although mobile phones' storage increases, affected by storage prices' drop and MCP applications' increase, storage's share reflects a downslide trend, which has decreased from 24.2% in 2006 to 19.4% in 2007
China Mobile Phone Chip Market
In recent years, single chip solutions' application grows rapidly; affected by this, the shares of power management chip and RF module decrease. Besides, affected by the increase of smart phones, GPS mobile phones, Bluetooth/WiFi function mobile phones and application processors, market share of wireless connection chip and other chips increases and is likely to keep increasing in future years.
Mobile Phone Chip Market in 2007
Mobile phones' baseband chip is the core of mobile phones' hardware, the integration of its components will directly affect the change of mobile phone platform's structure. Mobile phone baseband chip market can be divided into seven types, with DBB+ABB enjoying a larger market share. Chief users include Qualcomm, NXP, Agere, Broadcom, Freescale, Infineon and MTK; the next is DBB/ABB+PM, adopted by TI and ST; with the increase of low cost mobile phones, ABB+ABB+RF+PMU market grows rapidly, whose market share is 10.4%. As for market development in recent years, with integration in baseband chips, the shares of single chip solution DBB+ABB+RF+PMU and integrated application processor DBB+APP solution increase
Mobile Phone Baseband Chip Market
Excluding smart phones, the more sophisticated requirements for mobile phones lead to higher capacity requirements for chips. In order to follow this trend, mobile phone chip has two development trends: mobile phone baseband chip improves integration, which not only supports some kinds of communications standards, but also provides multimedia functions and is applied in the interface of multimedia display, image sensor and audio devices, such as MTK's 6226 solution. The other is coprocessor's integration development, which is applied in MP3 and image processing, and it will have more multimedia functions; meanwhile, mobile phones' basic communications module's single chip solution will accelerate the evolution.
Forecast on Size and Growth of Mobile Phone Chip market
Domestic Chip Manufacturers Need to be Strengthened
As for brand structure, mobile phone platform chip manufacturers have high positions such as TI, Qualcomm, Infineon, NXP and MTK. Besides, storage manufacturers such as Samsung, Intel and Spansion, and manufacturers with abundant product lines such as ST and RFMD also have important positions in the market. As for development ability, 3G chip manufacturers and application processor manufacturers have strong development abilities.
China's domestic mobile phone chip enterpises' shares are low. Because China's mobile phone chip design has a late start, its products focus on mobile phone multimedia chip, such as MP3 decoder chip, image processor chip and chord chip, and its downstream customers are domestic mobile phone production enterprises, but it is difficult to enter supply systems of international mobile phone manufacturers such as Nokia and Motorola. However, with the increase of domestic mobile phones' output and the development of multimedia mobile phones and 3G businesses, domestic mobile phone chip manufacturers have great potentials over the next few years. 3G, multimedia application and smart phones are not only impetus of mobile phone chip market, but also the development opportunities for domestic chip manufacturers.
In future years, China's mobile phone chip market will follow China's mobile phone output and enter steady growth. China's mobile phone chip market will break through 100 billion Yuan in 2009, and it is forecasted that the market will reach 146.13 billion Yuan in 2012. 2G/2.5G era mobile phones consider voice as major part, core chip is baseband. Multimedia and business application will be more and more applied in 3G era. Therefore, with the enlargement of 3G mobile phones' output, multimedia application chip, storage ship and wireless connection chip market should grow rapidly.