A report published by Digitimes states that smaller companies such as Leadcore Technology, Innofidei, Spreadtrum Communications as well as RDA Microelectronics are looking to merge with other companies to be better positioned to compete with larger rivals such as Mediatek and Qualcomm.
There is speculation that Intel, Nvidia and Broadcom could be jumping into the game, which could allow the companies to access TD-SCDMA chips and get closer to Chinese handset makers. Whether those three are interested is based on the question whether an acquisition will, in fact, allow them to sell more chips. However, the nature of such a deal would exclusively relate to the Chinese market. Intel especially has been very aggressive in acquiring businesses that open up new opportunities or fill a certain void in its portfolio, but the company declined to comment on the report.
Digitimes pointed out that MediaTek's recent merger with MStar semiconductor is putting some pressure on smartphone chip makers in China to step up their game, merge or acquire in order to be able to remain competitive.