Marvell said it is going to undertake a "significant restructuring" of its mobile chipset unit and indicated it is going to get out of the smartphone and tablet processor business. The company said it will cut around 17 percent of its global workforce and plans to continue to focus on Wi-Fi and other wireless standards "needed to support its strategies in existing markets as well as expanding into emerging opportunities" in the Internet of Things, networking and automotive markets.
Qualcomm is cutting 1,314 full-time jobs at its San Diego headquarters and hundreds of jobs in other locations, part of a previously announced restructuring the chipset giant its undertaking as it reacts to a slowing smartphone market.
Qualcomm said its Snapdragon 820 chipset, which is expected to be in many flagship smartphones in 2016, will support LTE-Unlicensed technology thanks to its upgraded modem. The silicon and technology giant noted that new phones powered by the chipset will be out in the first half of next year, and if customers are on a network that supports LTE-U, users "may experience a sudden boost in LTE speeds in areas that normally suffer from congestion."
LAS VEGAS--The debate over what is the best low-power wireless communications protocol technology to power millions and eventually billions of Internet of Things devices heated up here this week. LTE chipset Altair Semiconductor argued that LTE Category 1 chipsets can achieve many of the benefits of the more advanced Category 0 chips without the need for device makers to add in new silicon. Meanwhile, even though competitor Sequans Communications was here at CTIA's Super Mobility conference touting Cat 0, the company conceded that network software upgrades could bring the benefits of Cat 0 without the need for new chips.
Qualcomm is a leader in that tablet chipset market and Intel has spent mightily trying to crack into that market, but both have new competitors racing behind them from China. Rockchip Electronics and Allwinner Technology increased their tablet chip sales from a combined 0.3 percent of the market in 2010 to more than 27 percent just three years later, according to Bloomberg.
Intel's chips will ship in around 50 percent of the new models of Apple's iPhones, according to a report from Northland Capital Markets analyst Gus Richard.
Qualcomm struck a deal with an activist shareholder and agreed to cut $1.4 billion in costs, slash up to 15 percent of its workforce, change some of its corporate practices and review whether to split up its chipset and licensing units. The announcement, which came as the silicon giant reported disappointing earnings, was largely in line with the demands that the investor, hedge fund Jana Partners, had spelled out in mid-April.
Qualcomm plans to announce thousands of job cuts this week as the chipset giant faces declining prices for smartphones and rising competition from Chinese vendors, according to a report from The Information.
Intel is still on track to cut around $800 million from losses in its mobile operations this year but is delaying slightly the introduction of its newest mobile chips designed for entry-level devices.
Qualcomm has been the leader in the LTE baseband chipset market, and it still is, but it now has a clear strong competitor in the form of MediaTek, according to a new report from research firm Strategy Analytics.