[China Special] TI to Launch Third Design Center in China

April 2002 Issue


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China is now the world's largest cellular phone market, with 160 million subscribers, and the number is expected to double within five years. This is one reason why China is an important market for many semiconductor companies, including Texas Instruments (TI).

A second reason is that China will soon become the world's largest telecom market. China's current US$37 billion telecom industry is growing at an annual rate of 20 to 30%, and increasing demand for Internet access is fueling the need for more telecom equipment and increased bandwidth. It is almost certain that Chinese people will become one of the biggest Internet populations in the next decade.

New Shanghai Design Center

In the era of 2.5 and 3G wireless communications, mobile devices and networks begin and end with real time communications. This is where TI has proven leadership -- our customers have made TI's DSP and analog technology the semiconductor engines of the Internet age. DSPs enable real-time communications, which makes possible a whole range of new applications such as multimedia messaging, streaming video and audio, speech recognition, security, location-based services and e-commerce.

We have tapped into China's growth by increasing our resources in the country. For instance, in late February 2002 we announced two major initiatives increasing our involvement in China. The first announcement was that China's leading PC and Internet appliance manufacturer, Legend, has chosen TI's wireless chipset to develop its GSM/GPRS wireless handsets. Legend has also selected TI's OMAP application processors to power a set of its next-generation handheld Internet devices.

The other announcement formally launched TI's involvement in a new design center to be set up in Shanghai this year. This new company, COMMIT Inc, will focus on the needs of 2.5G and 3G multimedia terminals in China. COMMIT is supported by 17 companies, including core promoters TI, China PTIC Information Industry Corp, China Academy of Telecommunications Technology (CATT), Nokia (China) Investment Co Ltd, and LG Electronics Inc. The company initially will design and develop solutions for TD-SCDMA handsets based on TI's OMAP platform.

COMMIT marks TI's third design center investment in China. The other two are Beijing's DigiPro Information Technology Co Ltd, which provides technology solutions for digital consumer products, and Shanghai's DigiVision Technology Co Ltd, which pioneers designs for broadband access equipment. All three design centers share the same vision of leveraging TI's DSP and analog technologies to promote home-grown information products in China.

DSP University Program

In addition to the above three design centers, TI also has sales offices in Hong Kong, Beijing, Shanghai and Shenzhen. TI is a pioneer in training the next generation of design engineers in China. We established our first DSP University Program in China in 1993. By working closely with China's Ministry of Education, we have now established three DSP Solutions Technology Centers at Beijing Qinghua University, Shanghai Jiaotong University and Chengdu UEST, and 50 DSP Labs in 47 universities across the country.

China's entry into WTO will only enhance the need for these DSP-trained engineers and make TI's other investment even more important. The lowering of tariff rates after the WTO entry will bring about better consumer prices, fueling greater demand for a range of electronics products. WTO will enhance market access by multinational companies, sparking more foreign investment into China and bringing in new technologies, ideas and opportunities. China's domestic market will benefit from WTO through logistical, technical and production improvements, requiring up-to-date engineering education and techniques. And Chinese companies will benefit from increased access to worldwide markets and know-how.

Few experts can predict exactly where the mobile Internet will go and what wireless applications will be most important to consumers. New mobile phones and wireless PDAs are making possible a vast array of applications and services once only dreamed about. What is certain is that the mobile Internet will combine real-time signal processing technologies with advanced applications such as enhanced multimedia messaging, location-based services, speech recognition, mobile e-commerce and security for 2.5 and 3G mobile devices. Regardless of which way the technology develops, TI is committed to providing the advanced products and technical support that will help Chinese companies find success in the market-place.

by Gerald Kuo
Managing Director,
Texas Instruments China


(April 2002 Issue, Nikkei Electronics Asia)
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