Minnow unruffled by NXP, ST Microelectronics tie-up

WHILE SOME argue that industry consolidation in the wireless chip arena is threatening the smaller, specialist player Bluetooth specialist, CSR, remains unruffled.

Industry commentators have hinted that the cost of developing products for ever-decreasing die sizes is becoming onerous and only the Big Boys can afford it. Hence the recent NXP and ST Microelectronics tie-up.

But Matthew Phillips, a senior bod at CSR told the INQ: "It is also about much more than just throwing money at R&D. CSR has consistently leveraged its R&D spend intelligently to produce products that have been more advanced and more competitive than any other company in the markets we have chosen to target."

He added, "Whilst other companies may be larger and their R&D budgets may be bigger in absolute terms, [the money] is also distributed over a different mix of projects outside embedded wireless and so a direct comparison is less useful than it may appear."

So, in effect, small is still beautiful and being focussed continues to pay off, according to CSR. Phillips revealed that CSR's own spend was circa17 per cent of revenue in 2007.

In response to suggestions that the big handset vendors are seeking to consolidate the number of their suppliers, Phillips replied, "Vendor reduction has always been the normal model for companies such as those CSR supply. Being one of the approved suppliers is contingent on being able to offer a sustainably competitive proposition."

He also shrugged off suggestions that CSR might now be more vulnerable to a take-over. "All publicly quoted companies are subject to the potential for change in ownership," he quipped. µ

See also
ST Micro snaps up NXP
Single European chip company idea floated, torpedoed