As the growth of global smartphone shipments slows down, both the UK and the US chip design giants are turning their investment focus to the Internet of Things!
The Financial Times reported on the 11th that Strategy AnalyTIcs pointed out that the first quarter of global smartphone shipments showed the first decline in history. The report pointed out that ARM Holdings Plc, a British IC design company with a market share of more than 95% of the smartphone chip licensing market, has already begun to diversify its product portfolio. Last month, more than half of the authorized chip shipments in the first quarter of this year were targeted at the non-mobile device market. During this period, Anmou signed a new technology licensing agreement with 16 companies, 15 of which are engaged in non-mobile product development.
According to Simon Segars, CEO of the company, the company has been targeting non-action markets such as the Internet of Things for some time. He said that the chip design and development cycle is quite long, and the patent license fee charged now is the crystallization of product development five years ago, 10 years ago or even 20 years ago. Intel CorporaTIon's $16.7 billion acquisition of Altera last year was seen as a major step forward in improving its competitive position in the data center and connected devices market.
Intel announced last month that it would lay off 12,000 people worldwide (approximately 11% of the total number of employees) by mid-2017. Intel said at the time that the data center and the Internet of Things will become the company's main growth engine.
In the first quarter of 2016, Intel IoT Group's revenue increased 22% year-on-year to US$651 million, which was much better than the 1.7% of the client computing division (including smartphones and mobile devices) and 8.6% of the data center group.
Power amplifier supplier Qorvo has entered the Internet of Things (IoT) market last month through the acquisition of GreenPeak Technologies. According to Gartner's estimates, the smart home networking opportunities available in 802.15.4, ZigBee, and Bluetooth Low Energy (BLE) technology will grow to $2.3 billion in 2020; including retail, agriculture, automotive, home and commercial lighting markets. The scale of relevant smart market opportunities will be estimated at 4.9 billion US dollars in 2020.
Credit rating agency Fitch RaTIngs pointed out on the 10th that semiconductor industry outsourcing packaging and testing (OSAT) companies will be the main victims of slower growth in smartphone shipments, as competition from China intensifies and And the pressure will also rise. In 2016, revenue and earnings may fall by double-digit decline due to the decline in capacity utilization.
The International Semiconductor Equipment Materials Association (SEMI) announced that the three-month moving average of North American semiconductor equipment manufacturers receiving global orders in March 2016 was initially estimated at $1,380.5 million, 0.9% less than the $1.39 billion in the same period in 2015. The fourth month showed an annual decrease; the three-month moving average shipments were initially estimated at $1,198.5 million, a decrease of 5.3% from the 1.27 billion in the same period in 2015, and an annual decrease for the fourth consecutive month.
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