Aptina Merges Handset Software Unit of Chipnuts, Planning to Penetrate into China

Confronting with the industrial difficulties of the global semiconductor industry, international semiconductor giants eye the local semiconductor design enterprises.

Confronting with the industrial difficulties of the global semiconductor industry, international semiconductor giants eye the local semiconductor design enterprises. The American company Aptina recently acquired the handset software platform design unit of Chipnuts Technology Inc. (Chipnuts). Founded in September 2003, Chipnuts mainly specializes in the R&D of mobile multi-media application process chip and mobile platform solution. It has developed 9 multi-media processors. Chipnuts is trying to lower the threshold of smart phones for market access, said Hu Xiang, Board Chairman and CEO of Chipnuts. The 16 domestic mobile phone manufacturers Longcheer, SIMCom, Tianyu, Amoi, and Telsda etc have ever been clients of Chipnuts. Founded earlier 2008, Aptina, a subsidiary of Micron Technology, provides the mobile phone manufacturers with the 2-mega-pixel, 3-mega-pixel, and 5-mega-pixel CMOS image sensors. It is a leading enterprise in the CMOS imaging industry. “The employees of handset software platform units, about 30 to 40 in number, will be transferred to Aptina”, a source familiar with the matter said. The employee number of Chipnuts has been reduced from the previous 200 to about 100 this year. Chipnuts’ competitor MTK develops mobile phone chips with powerful functions, grabbing the clients and biting the living space of Chipnuts, the person added. Plenty of the players in China's semiconductor industry are lack of capital nowadays, when it is difficult to lure an investment due to the economic downturn, pointed out market observers. Presently, few Chinese semiconductor makers are able to reap USD 100 million operating revenue a year though the Chinese integrated circular industry has developed for over 20 years. “Between October 2007 and October 2008, a total 4 domestic IC design companies were acquired by foreign companies, the M&A case will grow in 2009, “ said Gu Wenjun, analyst for semiconductor industry of iSuppli. With the downturn of capital market, the Chinese semiconductor companies that are listed in NASDAQ all gave an inadequate performance, therefore, the M&A has been a way out. The 4 domestic IC design companies that acquired are Shanghai Digimoc, Hangzhou ImageSilicon, Shenzhen Yuanhe, and Chengdu West Star Chips. More Investment News from www.investtochina.com iPanel Gains Funding of $37.35 m from Orchid Asia & Fortune VC http://www.investtochina.com/Investment/Investmentinfo.a ... Runrungo Attracts CNY1 m Angel Investment http://www.investtochina.com/Investment/Investmentinfo.a ... Ikang Acquires Beijing Zhengqingyuan, Industrial Integration Boosting Service Upgrade http://www.investtochina.com/Investment/Investmentinfo.a ...

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