Wednesday, February 15, 2006
Texas Instruments says it will soon start supplying mobile phone producers with a single chip that powers an entire entry-level handset to allow them to be priced as low as just above $20.
"We're ramping very soon, targeting the $25 and low $20 price range (for handsets that contain the chip)," TI's chief of wireless chips, Gilles Delfassy said. "We will ship millions in '06, hopefully tens of millions," he said in an interview.
The cheapest phones at the moment, containing a set of two chips from TI, cost just under $30. Integrating all the functionality in a single chip cuts the price.
Texas Instruments, the world's third biggest chip maker and the global leader in chips for cell phones, will still be able to make a profit despite the low price of the chip which contains all the key elements to power a GSM handset, Delfassy said.
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