200% Growth for TD-SCDMA Baseband Market This Year

According to a recently published report from Strategy Analytics, the Chinese TD-SCDMA market should prove to be one of the key growth options for cellular baseband companies. The TD-SCDMA baseband market is expected to register a growth of around 200 percent during the ongoing year, the research firm notes in its latest report on the matter.

“Strategy Analytics estimates that the TD-SCDMA baseband revenues represented just 1.4% of total global cellular baseband revenues in 2009. Both MediaTek and ST-Ericsson dominated in terms of revenues by scoring multiple tier-1 design-wins with their dual-mode GSM / TD-SCDMA baseband,” Stuart Robinson, director of the Handset Component technologies service, commented on the findings of the report.

The research firm says that the major players in the TD-SCDMA baseband market, which has just started to ramp up, were MediaTek, ST-Ericsson and Spreadtrum. The latest Strategy Analytics report, dubbed “TD-SCDMA Baseband Market to Grow 200% in 2010,” from the Strategy Analytics Handset Component Technology services, also unveils the fact that MediaTek and ST-Ericsson, both TD-SCDMA market leaders, entered the segment through acquisitions.

“Several new players -- such as Marvell, Qualcomm, MStar Semiconductor and Infineon -- are expected to enter into the Chinese TD-SCDMA baseband market in 2010-11,” Sravan Kundojjala, analyst, stated. “Strategy Analytics believes that competition among chip vendors will drive down the price of TD-SCDMA handsets and potentially help to establish TD-SCDMA as a strong alternative to W-CDMA and CDMA2000 1xEV-DO radio technologies in China.” More info on the report can be found on the research firm's website.

This is not the first time the TD-SCDMA technology is said to prove a key growth factor on the mobile industry in China. Although only one carrier in the country uses the solution to power its airwaves, namely China Mobile, the number of subscribers choosing the technology was said last year to grow pass the 20 million mark. The availability of more handsets that would pack the technology is another factor that should contribute to its adoption.