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VIA acquires CDMA design center LSI Logic
VIA Announces Further Market Promotion of Cell Phone Chipsets and Acquisition of LSI Logic’s CDMA Product Design Center. The price of the deal is not named.
Under the agreement, VIA will acquire the LSI Logic CDMA design center in San Diego, California, which specializes in the development of new integrated CDMA chipsets for the next generation of mobile phones and other devices for voice and data transmission.
LSI Logic started production of CDMA chipsets in the late 1990s, but decided to leave the sector due to unsuccessful attempts to compete with the industry leader Qualcomm, which owns up to 90% of the CDMA chipset market. By the way, it is quite possible that additional difficulties await VIA in this market, since it is not known whether the CDMA licenses acquired by LSI Logic from Qualcomm will be transferred to VIA.
In addition to Qualcomm, VIA will have to compete in this market with such serious rivals as Analog Devices, Infineon and Motorola, and Texas Instruments, which itself does not produce CDMA chipsets, is still a supplier of DSP chips for GSM and TDMA phones of Nokia Group and other manufacturers. Nokia, by the way, itself develops CDMA chipsets for its phones.
However, VIA is not afraid of such a set of rivals. As the CEO of the company said in this regard, now VIA “has not only received a world-class development team at its disposal, it is also one step closer to the implementation of its Total Connectivity project.”.