7 January 2008
Following the acquisition of the US-based global positioning system (GPS) fabless company GloNav in late December of 2007, NXP Semiconductors is ready to offer customers in all fields, including the handset sector, with stronger functionality solutions. In light of the encouraging penetration trend in handsets of functions such as Bluetooth and FM radio reception, NXP is gearing for an upcoming launch of a GPS single chip solution in the near future.
From digitime, Q&A with Marc Cetto, executive vice president and general manager of NXP's mobile and personal business unit, about his views and outlook about the GPS market.
Q: Why did NXP select GloNav to strengthen the company's GPS offering?
A: Power consumption, cost, yield and technology maturity determines the competitiveness of a GPS chip. By taking all these criteria into account, and seeing that GloNav already successfully developed a single chip on the 90nm process node, we believe the corresponding intellectual property (IP) in this field will be easily integrated into our handset and GPS single chip offerings.
As GloNav has already planned to advance its GPS single chip to 45nm, the consolidation means a timely introduction of a mature, cost competitive and power efficient solution to customers. It also helps broaden our wireless communication chip product portfolio.
Q: What do you think about the GPS handset market? And what will be the growth drivers in 2008?
A: Of course we are optimistic about the market or else we would not have acquired GloNav. To put it simply, NXP believes that GPS has substantial potential in the handset market and will deliver huge added value much like Bluetooth and FM radio reception. These two markets now have a penetration rate of 40-50% in the global handset market and the rate is set to pick up further in the future. As we believe GPS will have a similar penetration trend, we think we chose the right time to tap into the GPS segment.
When NXP will deploy in the handset segment, we will particularly assess the markets that will deliver substantial growth. NXP believes that applications such as Bluetooth, FM radio, GPS and near-field communications (NFCs) are essential. As the penetration rate for GPS and NFC is still under 10%, these are potential areas to focus on.
Q: Can you detail NXP's GPS deployment amid the consolidation?
A: Since GloNav already houses its own customer base in personal navigation devices (PNDs) and other handset products, besides adding the Nexperia line to the 90nm-made solutions of GloNav's product lineup, we will also start offering solutions from GloNav to our existing customers in the handset, automotive and portable consumer electronics sectors. Of which, our handset customers are expected to see solutions available for them in February at the earliest.
NXP will also try to integrate a GPS single chip into other mobile communication solutions. But since we just announced the consolidation with GloNav, we have no concrete schedule for deployment in this field yet.
Q: As one of the major chip supplier for the TD-SCDMA standard, does the consolidation with GloNav imply a possible GPS-equipped TD-SCDMA standard chip?
A: The GPS single chip that we are going to unveil next month will be available to all handset makers, and this of course supports the TD-SCDMA standard. There is a possibility of seeing a TD-SCDMA handset with built-in GPS connectivity in 2008.
Q: Why did NXP select GloNav to strengthen the company's GPS offering?
A: Power consumption, cost, yield and technology maturity determines the competitiveness of a GPS chip. By taking all these criteria into account, and seeing that GloNav already successfully developed a single chip on the 90nm process node, we believe the corresponding intellectual property (IP) in this field will be easily integrated into our handset and GPS single chip offerings.
As GloNav has already planned to advance its GPS single chip to 45nm, the consolidation means a timely introduction of a mature, cost competitive and power efficient solution to customers. It also helps broaden our wireless communication chip product portfolio.
Q: What do you think about the GPS handset market? And what will be the growth drivers in 2008?
A: Of course we are optimistic about the market or else we would not have acquired GloNav. To put it simply, NXP believes that GPS has substantial potential in the handset market and will deliver huge added value much like Bluetooth and FM radio reception. These two markets now have a penetration rate of 40-50% in the global handset market and the rate is set to pick up further in the future. As we believe GPS will have a similar penetration trend, we think we chose the right time to tap into the GPS segment.
When NXP will deploy in the handset segment, we will particularly assess the markets that will deliver substantial growth. NXP believes that applications such as Bluetooth, FM radio, GPS and near-field communications (NFCs) are essential. As the penetration rate for GPS and NFC is still under 10%, these are potential areas to focus on.
Q: Can you detail NXP's GPS deployment amid the consolidation?
A: Since GloNav already houses its own customer base in personal navigation devices (PNDs) and other handset products, besides adding the Nexperia line to the 90nm-made solutions of GloNav's product lineup, we will also start offering solutions from GloNav to our existing customers in the handset, automotive and portable consumer electronics sectors. Of which, our handset customers are expected to see solutions available for them in February at the earliest.
NXP will also try to integrate a GPS single chip into other mobile communication solutions. But since we just announced the consolidation with GloNav, we have no concrete schedule for deployment in this field yet.
Q: As one of the major chip supplier for the TD-SCDMA standard, does the consolidation with GloNav imply a possible GPS-equipped TD-SCDMA standard chip?
A: The GPS single chip that we are going to unveil next month will be available to all handset makers, and this of course supports the TD-SCDMA standard. There is a possibility of seeing a TD-SCDMA handset with built-in GPS connectivity in 2008.
Marc Cetto, executive vice president and general manager of NXP's mobile and personal business unit
