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Qualcomm, TI Vie For 3G CDMA Position
Posted: 06-Jul-2000 [Source: TechWeb]

[Texas Instruments and Qualcomm but heads as 3G/CDMA chip set suppliers.]

By Darrell Dunn and Bruce Gain -- "Two heavy hitters in the cell phone chip market are trading punches, with Qualcomm scoring a design win with longtime Texas Instruments customer Nokia, and TI reaching into its deep pockets to complete an acquisition that is expected to provide the company with CDMA technology required for emerging third-generation (3G) systems.

"The actions come as the cell phone market begins to slowly move to 3G handset technologies that offer increased bandwidth to support new value-added services.

"While TI (stock: TXN) is the clear leader in the cell handset market, with more than a 60 percent market share, San Diego-based Qualcomm (stock: QCOMM) has a huge lead in CDMA technology, supplying about 85 percent of the CDMA chip sets shipped this year, according to industry analysts. Finland's Nokia (stock: NOK) recently chose to outsource a portion of its CDMA-handset manufacturing to Telson Electronics, a wireless OEM in Seoul, South Korea, that currently buys its CDMA chip sets from Qualcomm.

"Under the agreement, Nokia will design and market second-generation CDMA handsets in South Korea, with Telson manufacturing the handsets using Qualcomm's chip sets. The handsets are expected to be on the market in the first quarter of 2001, and may eventually serve other markets in Asia, and perhaps in the United States and Israel, a Nokia spokesperson said.

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