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Tuesday, September 13, 2011
Docomo, Samsung to Join Forces in Mobile Phone Chips

NTT Docomo Inc. and Samsung Electronics Co. are reportedly considering joining forces along with several other Japanese handset manufacturers to develop semiconductors for mobile phones on a new-generation mobile broadband standard, sources close to the matter said Tuesday, according to a Nikkei business daily report.

The two companies along with Fujitsu Ltd., NEC Corp. and Panasonic Mobile Communications Co. are planning to set up a jointly owned unit in Japan to design and develop a chip for regulating wireless signals to be mounted on handsets for the LTE standard, in an attempt to challenge the dominance of Qualcomm, the major supplier of a similar chip for the current 3G wireless mobile communications service.

DoCoMo is to take a majority stake in the joint venture, to be capitalized at about 30 billion yen ($389.6 million) and headquartered in Japan, said the paper.

Samsung expects the joint venture to help it in the development of next-generation telecommunication while DoCoMo hopes to lower chip procurement costs by taking part in development, the daily reported.

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