Sina Tech, 9/30/11
Sun Yuwang, president of Chinese TD-SCDMA chip maker and Datang Group subsidiary Leadcore Technology, recently divulged that while sales of TD-SCDMA chips slackened in H1 2011, demand is soaring in H2 2011 for chips from Leadcore and its competitors. Sun said the increase in demand was unexpected.
Yang Hua, secretary-general of China's TD-SCDMA Industry Alliance, confirmed the situation in a separate interview, saying that the overall supply of TD-SCDMA chips is currently unable to keep up with demand. Yang said that beginning in May and June this year, TD-SCDMA terminal manufacturers began releasing smartphones priced at approximately RMB 1,000, creating high demand for TD-SCDMA chips. For example, Yang said, since ZTE (0763.HK; 000063.SZ) released its RMB 1,000 U880 smartphone in May this year, more than 1 mln units of the handset model have been sold.