Summary of Important Announcements at Mobile World Congress a Few “Chip Level” Takeaways from MWC
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February 26, 2013 N. Quinn Bolton, CFA • [email protected] • 212-705-0322 Communication ICs Summary of Important Announcements at Mobile World Congress A few “Chip Level” takeaways from MWC Industry Note – Given the flurry of product announcements ahead, and during Day 1, of Mobile World Congress, we thought it would be appropriate to shed some light on what we see as key developments relating to our Communication IC coverage universe. Companies Under Coverage: ANAD: ProEficient Solution to Power Samsung Galaxy Music Duos and Chat BRCM: 4G LTE-Advanced modem combines two LTE carriers to deliver speeds of 150Mbps BRCM: HTC chooses Broadcom 5G WiFi technology in its newly launched HTC One smartphone BRCM: Broadcom and Radisys collaborate on 4G LTE small cells for multiple markets BRCM: Boosts 4G LTE mobile backhaul capacity by 50% with new microwave SoC solution BRCM: Broadcom expands multi-mode 3G/4G LTE small cell offering CAVM: Huawei selects Cavium’s PureVu CNW6611L for its AirSharing AM02 wireless media adaptor CAVM: LG U selects Cavium's OCTEON Fusion for powering its small cell deployment for LTE INTC: Intel introduces company’s first dual-core application processors for smartphones INTC: Intel announces multi-mode baseband solution, XMM7160, supporting LTE / DC-HSPA+ / EDGE MRVL: Baidu rolls out first commercial deployment of servers based on Marvell’s ARM processors MSPD: Mindspeed announces next generation Transcede SoCs for Metro/Premium Enterprise small cell applications MSPD: Radisys and Mindspeed continue small cell leadership with industry's first LTE-A small cell demonstration MSPD: Mindspeed and Aricent announce launch of High-Performing 20MHz small cell reference solution PSMI: Peregrine Semi expands second generation DTC product family PSMI: Peregrine’s third generation antenna tuning solutions selected by Intel for its LTE platform reference design PSMI: Peregrine announces STeP8 UltraCMOS(r) process technology RFMD: RFMD announces envelope tracking product family including power management ICs, single-mode PAs and multi-mode, multi-band (MMMB) PAs RFMD: RFMD expands multi-mode, multi-band power amplifier family; announces compatibility with major basebands SQNS: 3rd Gen Streamrich LTE 4G LTE-Advanced chip to sample next quarter; enables 20MHz+20MHz carrier aggregation SQNS: Sequans completes interoperability testing of its eMBMS-capable LTE chipsets with Alcatel Lucent’s LTE infrastructure equipment SWKS: SWKS announces initial SkyOne Design wins TQNT: TriQuint announces two new multi-band, multi-mode power amplifiers (MMPAs) TQNT: TriQuint announces High-Performance Duplexers for 3G/4G smartphone bands Companies Out of Coverage: Alcatel-Lucent and China Mobile accelerate deployment of 4G TD-LTE across China Texas Instruments announces dual-mode WCDMA/LTE small cell basestation design win at ZTE with its Keystone multi-core small cell SoC Qualcomm demonstrates carrier aggregation technology at MWC Qualcomm formally announces its entry into the RF front-end segment ST-Ericsson announces THOR M7450 LTE Advanced Modem Anadigics – ANAD - ANADIGICS' ProEficient Solution to Power Samsung Galaxy Music Duos and Chat o We believe this is a good design win for ANAD, and especially important in that the PA is for WCDMA/UMTS band 1 (2100MHz) rather than CDMA (e.g., Verizon or Sprint), which has been ANAD’s historical sweet spot. o UMTS market opportunity is much larger than CDMA market opportunity, and should provide meaningful revenue upside. Broadcom – BRCM - 4G LTE-Advanced modem demo combines two LTE carriers to deliver Category 4 downlink speeds of 150Mbps - the BCM21892 o This represents the first thin modem solution offered by BRCM in some time (most of BRCM’s recent solutions have combined modem and app processor in a single cellular SoC, targeting mainstream and low-cost market segments) o The BCM21892 LTE modem also incorporates envelope tracking, resulting in lower power consumption and better battery life o We believe this solution is targeted at the high-end of the market (e.g., major platforms such as Samsung GS4 and Apple iPhone) that historically have used internally designed application processors. o BRCM is now one of only five vendors on the market to have announced a Release 10/LTE-Advanced modem with carrier aggregation. The others are Altair, Qualcomm, ST-Ericsson and Sequans (at least that we know of). - HTC chooses Broadcom 5G WiFi technology in its newly launched HTC One smartphone – the BCM4335 o While the HTC One is not the Samsung Galaxy S4 or Apple iPhone, we believe this is an important win for BRCM as it is the first major smartphone platform to adopt 802.11ac. o We fully expect BRCM’s BCM4335 solution to be adopted by both Samsung and Apple in the next generation Galaxy S4 and iPhone 5S platforms later this year. o 5G WiFi, based on 802.11ac, improves the range of a wireless connection, provides higher-capacity video streaming, the ability to connect multiple devices to the network at the same time and broader coverage with fewer dead spots. o It also reduces power consumption by up to 83% - Broadcom and Radisys Collaborate on 4G LTE Small Cells for Residential, Enterprise and Public Access Markets o Broadcom has integrated Radisys' 4G Trillium® LTE TOTALeNodeB software into its 4G LTE small cell modems, including the BCM616730 for residential small cells, the BCM616750 for enterprise small cells and the BCM616760 for high- capacity metro nodes. o These LTE small cell basestation SoCs will compete with Mindspeed’s Transcede product family. o Investors should note MSPDs Transcede LTE basestation SoC was announced two years ago. o Like Mindspeed, Broadcom has partnered with Radisys for the LTE software protocol stack. o BRCM’s small cell solutions are now sampling, with volume production expected in Q2 2013. - Broadcom announces broad adoption of its Miracast solutions o BRCM’s solution consists of a WiFi solution and media processor, and competes directly with Cavium’s PureVu solution (see CAVM product below, which uses a Qualcomm Atheros WiFi component) o Right now, CAVM seems to have most of the market momentum, having announced PureVu-based wireless HDTV adapters with OEMs including HTC, Samsung, LG, Huawei and NEC, among others. - Broadcom Boosts 4G LTE Mobile Backhaul Capacity with New Microwave SoC Series o BRCM’s solution is a complete baseband and RF chipset optimized for high- bandwidth data requirements 2 An Investment Analysis by Needham & Company, LLC o Series includes a powerful multi-core SoC to maximize throughput capacity o This solution increases the bandwidth capability of microwave backhaul equipment by 50%...better backhaul means faster networks… o We think BRCM remains the merchant leader in modems for cellular backhaul applications - Broadcom introduces 3G/4G LTE multi-mode small cell offering o BRCM announced new family of dual-mode (WCDMA and LTE) small cell basestation SoCs… o We expect them to compete with Mindspeed’s dual-mode Transcede offerings Cavium – CAVM - Huawei's AirSharing AM02 wireless media adapter to use Cavium's PureVu CNW6611L media SoC o Huawei selected CAVM’s CNW6611L Media SoC for its AirSharing AM02 product which will offer wireless display and home media streaming capabilities o The release of the CNW6611L will coincide with the introduction of Huawei's new Ascend Mate smartphone o Cavium adds Huawei to its impressive list of PureVu-based wireless display adapters o We believe CAVM has most of the market momentum having announced PureVu-based wireless HDTV adapters with OEMs including HTC, Samsung, LG, Huawei and NEC among others. - LG U, a large Korean communication service provider, selects Cavium's OCTEON Fusion® for powering their small cell deployment for LTE. o Cavium’s OCTEON Fusion will allow for faster deployment and greater LTE coverage in rural and metro areas, with fewer small cells Intel – INTC - INTC introduces new 32nm “Clover Trail+” Atom SoCs and highlights forthcoming 22nm “Merrifield” Atom SoC o Intel announced its second-generation 32nm dual-core Atom processor platform ("Clover Trail+") and smartphone reference design. The new processors offer double the compute performance and three times the graphics performance over the first generation 32nm Atom processors. o Clover Trail+ Atom SoCs (Z2580, Z2560, Z2520) are available in speeds up to 2.0 GHz, 1.6 GHz and 1.2GHz, respectively, and feature support for Intel Hyper- Threading Technology, supporting four simultaneous application threads. o Customers announcing support for "Clover Trail+" platform for phones and tablets include ASUS, Lenovo and ZTE. o Intel also highlighted its forthcoming 22nm smartphone Atom SoC ("Merrifield"). The product is based on Intel’s leading-edge 22nm process and an entirely new Atom microarchitecture that will help enable increased smartphone performance, power efficiency and battery life. - INTC announces XMM7160 LTE / DC-HSPA+ / EDGE baseband o The 7160 global modem supports 15 LTE bands simultaneously. o XMM7160 baseband specs are limited, but it does not appear that this baseband supports Release 10/carrier aggregation. o It does however support envelope tracking and antenna tuning, which should increase the momentum for these new technologies over the next couple of years. o Intel is currently shipping its single mode 4G LTE data solution and will begin multimode shipments later in the first half of this year. Marvel – MRVL - Baidu rolls out “Baidu Cloud,” the world’s first commercial deployment of servers based on Marvell’s ARM