Intel entered the 5G telecommunications chip market to compete with Huawei

Tram Ho

The US chip giant, Intel, entered the 5G base station chip race with the great ambition to become the market leader in 2021, to help telecom equipment manufacturer and host partners. another key is against Chinese competitor Huawei Technologies.

Specifically, Intel yesterday introduced its first integrated 5G chip platform – Atom P5900 – used in base stations, the backbone of wireless telecommunications infrastructure, as well as a host of related custom chips. used for next-generation telecommunications technology.

“The Intel Atom P5900 will start deployment this year, being a key component of 5G base stations,” said Daniel Rodrigues, Intel vice president,. ” Ericsson and ZTE have announced they will use the Atom P5900 in their base stations.”

The leader said that Intel aims to become a ” market leader” with a 40% market share of the base station chip market by 2021, a year earlier than the company’s previous estimate.

Intel’s aggressive move into the telecommunications equipment chip market is seen as an attempt to ensure new sources of growth in the context of manufacturers of processors for servers and mainframes. Most of the world is lagging behind developers like ARM Holdings and Qualcomm in the smartphone chip sector, and has faced stiff competition from its smaller competitor Advanced Micro Devices (AMD) in current key businesses.

In addition, Intel’s move energizes the United States in building 5G power – which is the main battleground in the technology war between Washington and Beijing. Huawei – the company the US government has repeatedly said is a security risk – has developed its own 5G chips for both smartphones and networking equipment. There are no companies in the US that can afford to develop both advanced consumer electronics and core telecommunications equipment like Huawei.

Earlier this month, US Attorney General William Barr called for the country to take a stake in Europe’s leading telecommunications equipment maker Ericsson and Nokia to compete with ” dominance ploy”. of Huawei. Last week, Huawei said it was still maintaining a leading position in the production of 5G telecommunications equipment and had signed more than 90 5G commercial contracts globally. The Chinese company plans to unveil a second-generation 5G foldable smartphone in the near future, despite US sanctions that prevent it from using Google Mobile Service.

Intel tham gia thị trường chip viễn thông 5G để đấu Huawei - Ảnh 1.

It is clear that Intel is helping the United States to take certain steps in the fierce competition surrounding 5G technology among the world’s largest economic powers,” – Chiu Shih-fang, a veteran technology analyst of The Taiwan Economic Research Institute says.

We think 40% market share in the 5G base station chip market next year is quite ambitious. But if Intel can really partner with major telecommunications equipment manufacturers like Ericsson, Nokia, and other manufacturers to use its chips, it will be a reasonable business strategy “- the analyst said.

Huawei held 31% of the telecommunications equipment market in 2018, while Ericsson of Sweden and Nokia of Finland together held nearly 50%. Samsung Electronics held a 5% market share during the same period. But if the South Korean tech company is always at the lower end of the telecom equipment industry, it will still emerge as a driver in the race to develop 5G infrastructure, gaining contracts from homegrowers. leading networks such as AT&T and Verizon in the US, as well as Japanese KDDI and SK Telecom as well as Korea Telecom in the Korean home market.

So far, Ericsson and Nokia have both designed “home-made” chips and have also asked developers like Broadcom to help develop base station chips. Huawei designed such chips, and partnered with TSMC to manufacture them. Samsung, the world’s largest memory chip manufacturer, designed and made its own “government” 5G base station chip.

Intel says the first integrated 5G base stations will be used on the company’s advanced 10-nm chip manufacturing technology and will hit the market this year. However, Intel has been facing a difficult production situation since the second half of 2018 due to a delay in its latest 10-nm chip manufacturing technology, and an agreement to supply modem chips for iPhones. . Many computer manufacturers, such as Asustek Computer and Acer, have experienced a shortage of centralized microprocessors for more than a year and have been relying on their rival AMD for a chip.

Intel CEO Bob Swan told investors in January that it would continue raising capital to address a shortage of resources. ” We will increase production so that there is no difficulty for growth … Our short-term challenge is to work with our customers to bring their favorite product collections to them,” – Swan said. .

Last year, Intel sold its mobile modem division to Apple for $ 1 billion and officially left the mobile modem game.

That means the network equipment industry could be one of the last chances for Intel to get into the 5G boom. Last November, Intel partnered with MediaTek, the world’s second-largest mobile chip maker, after Qualcomm, to develop 5G-enabled laptops.

References: Nikkei

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Source : Genk