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STMicroelectronics Licenses IP From Datang for Development Of SoC ICs Aimed at 3G Mobile Market

17th January 2003

STMicroelectronics and Datang Mobile Communications announced an important agreement by which ST has licensed from Datang key know-how and intellectual property rights (IPR) in the field of TD-SCDMA (Time Division Synchronous Code Division Multiple Access), one of the 3G wireless interface specifications that has been adopted by the International Telecommunications Union (ITU).

Inset is Jean-Claude Marquet, Corporate Vice President and President, Asia Pacific STMicroelectronics who is quoted below.

ST will use the acquired know-how to develop mobile multimedia multimode TD-SCDMA/GPRS System-on-Chip (SoC) products. Devices will be developed initially for the Chinese market and potentially, in the future, for other markets worldwide, capitalizing on the recently announced 155MHz TDD (Time Division Duplex) spectrum allocations in China, the world's largest mobile phone market, and the already allocated frequency bands for TDD in other parts of the world.

The market expectation for systems-on-chip (SoC) solutions for mobile terminals has become increasingly demanding due to the diversity of air-interface standards and the need for a gradual and systematic transition from the recently deployed 2G to 3G networks capable of supporting the enhanced and higher data rate multimedia and mobile Internet services of the future. This requires silicon chip suppliers like ST to adopt a top-down systems approach, with participation in standards development and testing, protocol software and algorithm development and implementation on low power, cost-effective SoC products.

As one of the leading suppliers in the wireless SoC market, ST has aggressively expanded its portfolio of multimode product offerings. The IPR licensing of TD-SCDMA technology follows other recent initiatives such as the development of a W-CDMA platform and 3G protocol stacks, and the recently announced OMAPI multimedia application processor interface standard. ST will coordinate product development between its regional R&D centers in Singapore and Beijing and other product design and manufacturing groups worldwide, with access to its advanced DSP and MCU cores and toolsets and its advanced CMOS and Bipolar technologies.

Datang Mobile Communications Equipment Inc. is the proprietor of the TD-SCDMA IPR. In the field of TD-SCDMA SoC IC development, ST is the third company to participate in the technology transfer. Today's announcement will further speed up the development of TD-SCDMA mobiles for faster time to market. In addition to the technology transfer of its TD-SCDMA core technology and know-how, Datang will provide strong technical support required for ST to make TD-SCDMA mobile ICs available.

The strength of TD-SCDMA technology and its family is its ability to offer network operators a progressive and seamless transformation from the existing 2G network towards one capable of delivering 3G services reusing existing transmission links. Advanced features such as code division multiple access, smart antennae, mutual synchronization between mobile and base stations and joint detection, all of which can now be physically realized using advanced silicon processes, allow the efficiency of spectrum usage to be three to five times higher than that of conventional GSM. These technical advantages will lead to more coherent business models for operators and terminal OEMs, reducing time to market of 3G-like services and catalyzing applications and content development, the key to achieving increased ARPUs (average revenue per user).

A unique feature of TD-SCDMA, the ITU-T accepted worldwide standard for Low Chip Rate TDD, is its ability to dynamically adjust the proportion of time allocated to the uplink and downlink communications during a mobile connection. This maximizes the efficiency with which valuable spectrum resources are utilized. This is a particularly valuable benefit in the Asia-Pacific region where mobile Internet applications represent a fast-growing trend.

"This initiative in TD-SCDMA will enable ST to be present in one of the world's fastest growing market with a broad base of 3G solutions, giving us the early opportunity to work with OEMs and operators in developing multimode, multimedia products rapidly," said Jean-Claude Marquet, Corporate Vice President and CEO, STMicroelectronics Asia Pacific.

Tang Ruan, Chief Operating Officer of Datang Mobile Communications Equipment commented, "The technology transfer of TD-SCDMA to STMicroelectronics, a worldwide leading silicon supplier, will help strengthen and accelerate the development of TD-SCDMA. Today, a number of leading vendors are involved in the chain of TD-SCDMA, from the system to the terminal, creating a multiple supplier environment. We believe that a commercial TD-SCDMA system will be available before the launch of the 3G market in China, demonstrating the benefit of the TD-SCDMA international standard in technology, cost, and evolution. "


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