Renesas strategy: Domestic chip player to global mobile tech leader

For now, Renesas’ first LTE/HSPA+ modem chipset comes with no DSP. It is using Nokia-designed proprietary logics for LTE, in addition to ARM Cortex-R4 processor core for the modem.

Asked about the company’s LET/HSPA+ modem ICs based on Nokia’s technology, Renesas’ Akao said, “We are neutral on the choice of IP cores. As long as they are highly efficient, and more or less standards-based, we think that’s the way to go.”

Moving forward, Akao said, “Together with Nokia’s team, we will brush up, improve new versions and develop new platforms.” He added that Rensas is hopeful in actively participating in the standardization process for the next-generation modem development after LTE.

While there are numerous options for LTE-baseband DSPs: an in-house design, Tensilica, Ceva, NXP, Blue Wonder, Cognovo, Coresonic, and Silicon Hive, “the options for Renesas are three-fold,” explained Byrne.

“It’s either switch to the DSP selected by Nokia; migrate Nokia's design to Renesas's DSP of choice; or to switch to a neutral DSP,” he noted.

 ST-Ericsson, for example, is migrating Ericsson's LTE design, which likely used Ceva DSP technology, to one based on a DSP originally from NXP, Byrne explained.

“My guess is that Renesas has Tensilica-based LTE hardware, owing to the success Tensilica has had with NTT Docomo. I have no sense of what DSP technology Nokia has been using in its LTE baseband modems.”

It’s not just phones anymore!

What matters in the upcoming LTE world is no longer limited to mobile handset design wins, said Akao.

LTE modems will be integrated into myriad Mobile Internet Devices – other than mobile handsets, Akao predicted, thus enabling ubiquitous high-speed data connections for almost any product. The LTE modem can serve as a catalyst for consumers’ “cloud computing,” he added.

Renesas estimates that as many as 280 million terminals will be integrated with LTE modems in 2012 alone. Roughly 50 percent will be e-readers, iPad-like devices and others – which are essentially non-cell phones.

Behind the company’s LTE strategy, Renesas is committed to gaining a foothold in the growing wireless broadband infrastructure market.

Linley Group’s Byrne said, “An important factor will be how much interoperability testing expertise Renesas gains” from this Nokia deal. The priority for Renesas is to develop LTE modems that “connect to the world,” Akao agreed.

While some industry analysts asked why Renesas is venturing into a market as competitive and uncertain as mobile handsets, Akao explained, “Our focus is not limited to cell phones. We think this will be a far bigger market.”