Spreadtrum secures leadership position in TD-SCDMA market

SHANGHAI, CHINA: Spreadtrum Communications Inc., a leading fabless semiconductor provider in China, with advanced technology in both 2G and 3G wireless communications standards, has achieved a leadership position in China’s TD-SCDMA market, according to the analyst firm IHS iSuppli. TD-SCDMA is the China 3G standard adopted by the country’s largest telecom operator China Mobile.

Spreadtrum’s low-cost, high performance baseband solutions, based on its advanced 40nm platform, has enabled the Company to secure design wins with both tier-1 OEM handset manufacturers, and independent design houses, serving the market. Shipments in the feature phone segment have also helped to drive significant growth in the first half of 2011.

“In the first half of 2011, Spreadtrum secured more than 50 percent market share of TD-SCDMA shipments,” said Kevin Wang, Director, China Research of analyst firm IHS iSuppli. Spreadtrum expects TD-SCDMA uptake to accelerate in the second half of 2011; bringing the overall market from 34 million units shipped in 2010 to more than 50 million units shipment this year.

“Our advanced 40 nm platform enables us to deliver a superior 3G experience on handsets,” said Dr. Leo Li, president and CEO of Spreadtrum. “The low power consumption of our TD-SCDMA baseband solutions enables up to 15 hours talk time and 17 days standby time off of 1000mAh batteries.”

Spreadtrum further expects that shifts in China Mobile’s purchasing strategy will also help drive faster growth. As more phone models have become available, China Mobile’s purchasing has shifted from central procurement tenders, in which the head office negotiates for certain models and volumes, to purchasing through local distribution channels. “Local purchasing enables regions to order handset models that are best matched to local consumer preferences, price points and styles,” added Dr. Li. “The ability of consumers to purchase 3G handsets with an attractive user experience, feature set and design, at close to EDGE handset prices, is accelerating market uptake of TD-SCDMA handsets.”