From a component technology perspective, there are a few things that I am looking forward to seeing at MWC 2012, including:

1. NVIDIA’s Tegra 3 processor appearing in HTC smartphones – do we really need quad core processors in handsets though? What does it add? Is power consumption improved? I'm sure the experience will be impressive and we'll know more once we've seen Tegra 3 in action on a smartphone.
2. Intel’s Medfield processor should be appearing in Motorola and Lenovo smartphones at least. The performance stats appear impressive, but I’ll be looking to see how the power consumption compares to ARM-based processors.
3. Qualcomm's mirasol and Pixtronix display technologies. Mirasol is only available as a 5.7-inch display at present. When will the technology be good enough for phones, if ever? And how does Pixtronix fit into Qualcomm's portfolio alongside mirasol. Does Qualcomm really need two MEMS-based display technologies?
4. Powermat and other WPC wireless charging products. I’ll be looking to see the growth opportunities for Qi-compliant products and asking whether they can gain traction without Apple's commitment to the Qi standard?
5. Scalado has a new camera software, called Remove, that deletes people in the background of your photos. Looks quite interesting.
6. Senseg touchscreen technology. My most anticipated viewing. Their technology allows you to create customizable and changeable buttons, edges and textures on the screen, taking haptics to the next level. It won't be commerically available for another 2 years yet, but I'm looking forward to seeing the demos. 

This is just a taster. I'm sure there will be plenty more to talk about at the show next week.

If you have any thoughts, let me know.

Stuart Robinson

What would you do with $888 million?

• Expand your manufacturing capacity?
• Acquire a competitor?
• Enable the solid-state lighting revolution by moving up the supply chain?
• Shore up for an expensive legal battle?
• All of the above?

Such are the options for Cree. The North Carolina company, whose GaN LED chips are selling like very hot cakes indeed, has just posted record quarterly revenues and a pre-tax income of $28.4 million. That merely added to the company’s already swollen coffers, thanks to its September stock offering.

Cree sold 11 million shares at $35.50, doubling its cash balance at a stroke. As much as $900 million will soon be burning a sizeable hole in its pocket.

As Cree tries to keep up with the demand for its high-performance chips, the company needs to seriously expand its manufacturing capacity. It has earmarked up to $165 million to make significant additions to LED production and component packaging facilities. But even that expansion will still leave some $750 million in Cree’s war chest.

With a history of acquisitions, Cree could be scouring the corporate landscape for the kind of company that will help it kick on to another level. Another chip maker perhaps? Cree CEO Chuck Swoboda suggests a different tack entirely. With no obvious gaps in its stable of products (unless you count AlInGaP LEDs), he is looking for a deal that will catalyze the LED lighting revolution, rather than merely service it, thereby enabling the market for Cree’s customers, and their need for LED chips.

There is another reason why Cree might need that pile of cash. As one of the only companies to decline a settlement with the octogenarian academic Professor Gertrude Neumark Rothschild, its lawyers are probably preparing to do battle over key patents relating to GaN chips. These battles can be very expensive and Cree will want to make sure that it has the means to win the case, or at least afford any settlement agreement.

Strategy Analytics’ Strategic Technologies Practice releases regular insights and reports on the compound semiconductor industry, covering GaAs RF, GaN, LED and laser diode technologies and more. To find out more click  --->> HERE

Asif Anwar

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