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IEK: The Winner Takes it all Situation for Chip Makers has Gone

By Vincent Wang
Published: Oct 20,2014

TAIPEI, Taiwan — Qualcomm agreed to buy U.K. chipmaker CSR for $2.5 billion to expand in technology for connected appliances and Internet of Things (IoT). Industrial Economics & Knowledge Center (IEK) sait that in the coming era of IoT, it's not the winner takes it all situation for chip makers, so Qualcomm' takeover of CRS has limited effect.

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Some analysts considered that Qualcomm has bought the wireless communication chip maker Atheros, and the overlapping of technology between Qualcomm and CSR is high, it's hard to understand Qualcomm's motivation.

Yang Rui-lin, a senior analyst at IEK, said that the bluetooth is the key technology in the IoT business, however, Qualcomm' takeover of CRS is not only aiming at technology, patent, and product.

Yang Rui-lin pointed out that Qualcomm bought Atheros in views of better its technology and patent, “this time Qualcomm bought CRS is because the ecosystem of CSR, which plays important roles in many standard organizations.”

In other words, Qualcomm will be more dominant in IoT related business and even in the import and export businesses.

Yang Rui-lin forcast a wave of acquisitions and mergers over the next few years with the view that besides the bluetooth, WiFi, IT security are also key technologies of IoT. Acquisitions and mergers are the fastest way to reinforce the technology insufficiency.

IoT is the driving force of IT industry, according to MediaTek, the business model will be the big challenge of all.

Yang Rui-lin also suggested that the applications in IoT that will result in a hundred flowers bloom situations for the related firms, and the winner takes it all situation for chip makers has gone.

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