Handset solution vendors are preparing to launch next-generation 4G chipsets in the first half of 2015 with prices likely to be 30% cheaper than current models, heralding keen competition in the 4G chipset segment in the coming year, according to industry sources.

The chip vendors will be able to quote their new chips cheaper because they will come in sizes 20% smaller than most prevailing 4G solutions, which will allow chip suppliers to bargain for reductions in packaging/testing costs, said the sources.

Due to tight production schedules at Taiwan Semiconductor Manufacturing Company (TSMC), some chipset vendors, particularly Qualcomm and MediaTek, have also approached other foundry houses in order to diversify supply sources, while also trying to reduce foundry costs.

For example, Qualcomm has placed 4G modem chip orders with United Microelectronics Corporation (UMC), which has enabled the chip vendor to wage a new round of price war in the mid-range to entry-level 4G chip market, indicated the sources.

By: DocMemory
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