25 April 2008
China-based TD-SCDMA IC design house Commit is reportedly to suspend operations by the end of this month, according to sources at the handset makers.
Due to the delay of China's TD-SCDMA standard certification for several years, while Commit does not have any other product lines to bring in revenues, the company recently informed staff it will suspend operations at the end of April. However, the operational team is still negotiating with its investors hoping to find funding to save the company.
Commit's dual-mode TD-SCDMA/HSDPA chips have demonstrated strong performance, presenting a possible incentive for a telecommunications company step in and take over the business, while Nokia, a major investor, might still provide reinforcement, noted the sources.
With the exit of Commit from the market, other TD-SCDMA players, including Taiwan-based MediaTek, stand to benefit from having one less competitor, while at the same time the loss could cast doubt over the whole TD-SCDMA market impacting profitability for everyone, industry watchers commented.
