3G chip maker competes on global market
By Li Zengxin (Chinadaily.com.cn)
Updated: 2006-06-30 17:40
Members of the Brand Promotion campaign visited headquarter of Comlent in
Shanghai on June 26. Prof Chen Kai, founder and CEO of Comlent introduced his
company and made an exciting speech in front of officials from the Ministry of
Commerce, journalists and industrial experts at its office.
Comlent, founded by returning overseas Chinese students, is competing in the
3G chip industry on the global technology. Based-in Zhangjiang High-Tech Garden,
Shanghai, the company started from 500,000 yuan (US$62,500) attracted venture
capital such as Intel Capital and has invested US$100 million in fables radio
frequency integrated circuit (RFIC) designing. Its TD-SCDMA internet wireless
communications chips are the first RFIC solution in the world with independent
intellectual property right obtained by a Chinese company. It may fulfill 3G
communications requirements for a potential of 400 million mobile phone users in
China.
“Chips are different from internet, although both fall in the IT industry.
For internet, localized services may set aside some space for local portals.
Competition is fierce but not as much as in chip industry. For instance, the
United States have Yahoo!, we may have Sohu; they have Amazon, we may focus on
Dangdang. However, on chip, you compete on the global platform. You compete with
Intel, AMD, IBM. You lose if you are not the best. You lose at 90 percent odd
even if you are indeed the best,” said Chen. “We’ve invested millions on our
design and products and are still expecting for returns. If invested elsewhere
such as the real estate market, we may have gained huge profits. But local made
3G chips for wireless communications have to be done by someone,” he added.
The company is aiming to be listed on Nasdaq at proper time. Chen said all
the company asset has been distributed in stock option forms to the 80 employees
of the company, including himself, eight PhD holders and 25% returning Chinese
who ever worked overseas for IBM, Intel and Microsoft etc, as well as
administrative staff such as receptionists.
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