China develops independent chip for 3G phones

May 10, 2004

Spreadtrum Communications has developed China's first 3G mobile phone chip with independent intellectual property rights which could be commercialised before the end of this year.

While a majority of current phones employ three separate chips to control the analogue baseband and digital baseband communications and power management, the new chip design enables all three functions on one chip. The chip volume is two-thirds smaller and cost half than the traditional chips.

So far only a limited number of worldwide companies are able to produce 3G chips. China's new chip is expected to be included in a number of 3G projects supported by the Ministry of Information Technology and the Ministry of Science and Technology.

The development of the new chip will help the commercial introduction of TD-SCDMA handsets and networks. China has yet to issue 3G licenses but recent comments suggest that three licenses could be issued next year where operators are free to choose their own 3G technology to deploy.