Business Tech

ARM, the company that designs chips for the world's smartphones, said handset makers will deliver the first models using more than one processor core next year, as high-end mobile phones begin to mimic the hardware attributes of PCs.

Palm Pre

(Credit: Palm )

And that means top smartphone suppliers such as Apple and Palm, which both use ARM-based processors, will likely deliver models packing at least two cores inside the main processor--referred to as an application (or applications) processor.

This is a natural progression for high-end smartphones like the iPhone and Palm Pre as the software those phones run gets increasingly sophisticated.

"You'll definitely see handsets shipping with a dual-core A9 in 2010," James Bruce, wireless segment manager for ARM, said in a phone interview earlier this week, referring to the next-generation Cortex-A9 processor from ARM.

The Palm Pre uses a processor based on the current-generation Cortex A8. The iPhone also uses an Apple-branded chip that is based on an ARM design.

"The A8 is just a single core while the A9 will be dual-core, all the way up to quad-core to give smartphones an even bigger performance boost," Bruce said.

He said the move to dual-core phones should happen relatively quickly. "It's very aggressive. It's only going to be in a year's time that you're going to get these phones," he said.

And what about power consumption, a critical concern for smartphones looking to deliver all-day battery life? "What we've done on the A9 is actually make it more power efficient than the A8. The dual-core A9 will be coming out on 45-nanometer rather than the (current) 65-nanometer process," Bruce said. Generally, the smaller the geometries, the faster and more power-efficient the processor is.

Bruce continued. "With the dual-core running at maximum load there's probably going to be an increase of about 10 to 20 percent in power consumption but in general day to day use you're actually going to see better battery life."

Texas Instruments raised its outlook for the second quarter Monday, as analog chips and processors for high-end smartphones like the Palm Pre drive sales.

A Texas Instruments processor is the brain inside the Palm Pre

(Credit: Palm)

In a "scheduled update" to its business outlook for the second quarter of 2009, TI said Monday that it expects revenue of between $2.30 and $2.50 billion, compared with the prior estimate of between $1.95 and $2.40 billion. Earnings per share is now expected to be between $0.14 to $0.22, compared with the previous estimate of between $0.01 and $0.15.

Though analog chips are the biggest driver of sequential growth, TI is also seeing a bump in sales of its application processors that go into smartphones such as the Palm Pre. TI's 600MHz OMAP 3430 processor is the brain inside the Pre. The chipmaker also supplies power management, audio, and USB silicon for the Pre.

"Orders were strong in April and May," said Ron Slaymaker, vice president and head of investor relations at TI, in a conference call on Monday afternoon. "We see strength in smartphones--the high-end segment of the market," he said.

And Sprint Nextel executives said Monday that the launch of the Palm Pre on Saturday hit a new sales record for the company. More good news for TI.

The competition to get silicon into the latest and greatest smartphone and mobile Internet device is severe. TI vies for silicon real estate with Samsung, Qualcomm, and Marvell. And the field is getting increasingly crowded: PC industry heavyweights Intel and Nvidia are focusing their considerable resources on the market. Intel, the largest chipmaker in the world, clearly wants to be a major player in the smartphone market by 2011.

And Apple is in the business, too. Though Apple would like it if the iPhone remained a black box (it doesn't matter what's inside, it's the Apple brand on the outside that matters), it is involved in the design of the processors inside its iPhones, according to analysts. The processor inside the iPhone is supplied by Samsung, but branded as an Apple chip.

The TI chip in the Pre is a superscalar design based on the Cortex-A8 core from U.K.-based ARM. The 3430 features "a dedicated level-2 cache and execution of up to twice as many instructions per clock cycle" over previous chips, according to TI documentation. It also integrates a Powervr SGX 2D/3D graphics accelerator.

In another bad sign for the consumer electronics market, chipmaker Texas Instruments warned that its current quarter sales and earnings will come in far below earlier estimates.

The company said it now expects revenue of $2.3 billion to $2.5 billion, as compared with prior expectations of $2.83 billion to $3.07 billion. Per-share earnings are now seen between 10 cents and 16 cents, as compared with an earlier range of 30 cents to 36 cents.

TI did not provide further details in its press release, but said it would hold a conference call to discuss its finances. The company is one of the leading makers of the chips used in cell phones.

Its announcement follows similar warnings from a host of other companies including fellow chipmakers Intel and Advanced Micro Devices.

Update: Broadcom also warned late on Monday. At its analyst day, it said revenue and margins would be significantly less than previously projected. The company now expects fourth quarter revenue of $1.05 billion to $1.1 billion, including that from the digital TV unit it recently acquired from AMD. The company had previously said to expect $1.17 billion to $1.24 billion, excluding that acquisition.

Gross margins will drop more than expected from the prior quarter, Broadcom said. The company did say it is cutting some of its operating expense plans.

iSuppli releases its preliminary 2008 top-20 chip rankings as semiconductor suppliers fall upon hard times.

Intel, Samsung, Texas Instruments, Toshiba, and STMicroelectronics occupy the top five positions, while Advanced Micro Devices was No. 11 and Nvidia No. 20 in the ranking.

Memory chip manufacturers are some of the hardest hit. South Korea-based Hynix, which dropped from No. 6 to No. 9, and Micron Technology (No. 16) are both restructuring. Micron is reducing staff and shutting down facilities, while Hynix seeks outside investors.

Micron is expected to post a 9.2 percent revenue decrease in 2008 and Hynix's revenue should dive by about 29 percent in 2008, iSuppli said.

The world's largest memory chip supplier and the world's No. 2 chipmaker, Samsung Electronics, is set for a 9.1 percent revenue decline for the year, the market researcher said.

Toshiba, a major flash memory chip manufacturer, is expected to post a 5.9 percent decline in chip revenue in 2008.

iSuppli said 2008 will go down as "a year to forget" for memory chip suppliers.

Preliminary 2008 worldwide ranking of the top 20 chip suppliers

(Credit: iSuppli)

Munich, Germany-based Infineon (No. 10) said Wednesday it expects 2009 revenue to fall at least 15 percent from the previous year. Infineon makes chips for automotive and communications devices, but is also a large player in the memory chip market through its subsidiary Qimonda.

Global semiconductor revenue is expected to decline by 2 percent in 2008 due to a 16.9 percent plunge in sales of memory integrated circuits (ICs), iSuppli said. "Only two out of the Top-29 memory IC suppliers, i.e. companies that are expected to earn roughly $100 million or more in 2008, will see their memory IC revenue grow in 2008. For the memory IC business, 2008 can only be described as disastrous," Dale Ford, senior vice president of market intelligence services for iSuppli, said in a statement.

The downturn in semiconductor revenue in 2008 is not limited to memory suppliers. Six of the top-10 chip suppliers are expected to see revenue falls in 2008, including some companies that are not focused on memory, including Texas Instruments, Renesas Technology, and Sony, according to iSuppli.

"In the face of increasingly negative economic news, orders for semiconductors have virtually stopped," the market researcher said.

"About the only good thing that can be said about the 16.9 percent decline in memory revenue in 2008 is that it pales in comparison to the 48.2 percent plunge in 2001," Ford said.

And a few companies have been performing relatively well. Based on an expected revenue growth of 19.6 percent, Qualcomm is expected to jump five places to No. 8 in the rankings in 2008, up from No. 13 in 2007, iSuppli said.

The next-generation USB specification is slated to be introduced later this month.

USB 3.0 SuperSpeed logo as shown at WinHEC 2008

(Credit: Brooke Crothers)

On November 17 the SuperSpeed USB (USB 3.0) Developers Conference, hosted by the USB Implementers Forum in San Jose, Calif., will unveil the USB 3.0 specification to the industry, according to a statement Wednesday from the Implementers Forum.

The USB 3.0 specification, a next-generation high-speed connection standard due in 2009, is significant because all future PCs and devices will use connectors based on it. The spec is also expected to offer 10 times the speed of USB 2.0--used in virtually all PCs introduced in the last few years--or roughly 5 gigabits per second.

Hewlett-Packard, Intel, NEC, NXP Semiconductors, Microsoft, and Texas Instruments are all backers of SuperSpeed USB.

Speaking at the Windows Hardware Engineering Conference (WinHEC) in Los Angeles, USB-IF President Jeff Ravencraft said he expects the final specifications to be made public on November 17.

Intel and Nvidia had been skirmishing over the standard but resolved their differences.

Jack Kilby

Texas Instruments commemorated the 50th anniversary of the integrated circuit with the opening Friday of Kilby Labs, honoring Jack Kilby, the Nobel-prize-winning inventor of the seminal electronic device.

As a new TI employee in 1958, Kilby was forced to work during the traditional company summer vacation. During that time, he built the first integrated circuit, now the basic building block of everything from 3G cell phones to supercomputers.

The first IC was crude: a sliver of germanium with protruding wires glued to a glass slide (see image below). When Kilby applied electricity to the circuit, "an unending sine wave undulated across his oscilloscope screen. In that instant...he had successfully integrated all of the parts of an electronic circuit onto a single device made from the same semiconductor material," according to TI's Web site.

The first integrated circuit built by Jack Kilby

(Credit: Texas Instruments)

Robert Noyce, who co-founded Intel, also created an integrated circuit, about six months after Kilby. At that time, Noyce was at Fairchild Semiconductor (which he also co-founded). Noyce's chip, made of silicon, overcame some practical problems that Kilby's germanium-based device did not.

Kilby won the inventor's "Triple Crown": the Nobel Prize in physics; the National Medal of Science; and the National Medal of Technology. He held more than 60 patents including one for the portable electronic calculator, which TI invented in 1967. He died in 2005 at the age of 81 after a battle with cancer.

Kilby was one of the co-inventors of the electronic calculator

(Credit: Texas Instruments)

Kilby Labs will be located on TI's Dallas North Campus, where Kilby first designed the chip. The new facility will bring together university researchers and leading TI engineers to discover new ways to use the IC--"from creating new ways to make health care more mobile to harnessing new power sources to enabling more fuel-efficient vehicles," TI said.

TI has named Ajith Amerasekera as director of the labs. Amerasekera, who is a TI fellow, joined the company in 1991 and holds a Ph.D. in electrical engineering and physics.

At TI's headquarters, the original lab where Kilby worked and made his discovery of the first integrated circuit has been re-created on-site. TI has also made a donation toward Jack Kilby's memorial statue in his hometown of Great Bend, Kan.