Change in the Structure of Global Competition in Mobile AP Market and Its Implications
|Author||Kim Jong Ki||Date||2013.09.17||Issue No|
○ Thanks to the expansion of global smart device market, mobile AP is on the sharp increase in the semiconductor market, and notably, the competition among enterprises is moving toward the multilateral competition due to the growth of Chinese enterprises.
- As a key part of HW platform. AP is witnessing its importance is growing, leading to the fierce competition among semiconductor producers·foundry enterprises and the smart phone manufacturers from the U.S., Korea and Taiwan.
○ Amid the stiff competition between Samsung and Apple which are the leading smart phone manufacturers in the market, the partnership in AP is recently entering upon a new phase.
- Although Samsung and Apple are in partnership as Samsung provides Apple with the core parts such as D RAM and display as well as AP, the concern is dramatically emerging over the reduction in the transaction between Apple and Samsung as the as the Apple was known to make the AP supply contract with TSMC.
- Samsung is expected to go through the decline in their revenue once its partnership with Apple in the AP supply is reduced or ends. However, the negative effect on Samsung would be limited.
○ In order for Korean telecommunication device industry which has comparative disadvantage in mobile operation system, to differentiate itself from the followers such as China, lead the market of smart device and respond to the emergence of new smart device in the future, it is urgent for the industry to secure future competitiveness in the core parts including AP.
- In the competition among giant corporations, which has been more intensified by Microsoft-Nokia Alliance, there is a more growing need to develop next-generation AP and strengthen the manufacturing process capability
○ For Domestic AP sector, it is required to reinforce the capacity of integrated AP chip and diversify the source of demand such as China in order to reduce the high dependency on only a few enterprises and respond to the spread of low price product