Marvell and Analog Devices recently announced a new partnership to develop 5G network components. The two semiconductor companies want to create multiple input, multiple output equipment optimized for the millimeter wave spectrum. The pair of component makers aim to court original equipment manufacturers (OEMs) with new low-cost, low-power, and small size devices.
Why Marvell and Analog Devices Teamed Up
At present, fifth-generation mobile data networking technology is still early in its deployment phase. The Burn-In recently reported 5G-enabled devices only counted for 1 percent of the global smartphone market in 2019. However, as the telecommunications innovation becomes more widely adopted, it will have a massive impact on the worldwide marketplace. IHS Markit predicts 5G technology will enable $13.2 trillion in sales by 2035.
With the new collaboration, the two semiconductor makers are looking to claim a sizeable piece of the fifth-generation pie.
The firms plan to produce new digital front-end ASICS products for application in fifth-generation base stations. The two companies also plan to develop a range of standardized and custom 5G radio units to help OEMs reduce their product development time.
Zacks Equity Research believes the Marvell/Analog Devices partnership will benefit both corporations. The firm cites a report by Strategy Analytics indicating increasing demand for 5G gear, specifically RF chipsets and components.
The New Gold Rush
Marvell and Analog Devices are hardly the only two companies pursuing 5G networking technology opportunities.
Last November, The Burn-In reported Intel and MediaTek partnered to produce 5G components for new laptops made by Dell and HP. Similarly, the Taiwanese Semiconductor Manufacturing Company announced it would spend $14 billion to $15 billion to upgrade its production capacity in January. The firm did so in part to ensure it could produce enough fifth-generation chipsets for Apple’s 5G iPhone rollout.
That same month, Samsung acquired TeleWorld Solutions to bolster its 5G portfolio and knowledgebase. Earlier this month, Google and AT&T revealed they had teamed up to develop a host of new fifth-generation network enterprise solutions.
With a $13.2 trillion addressable market on the horizon, it’s no surprise that several large tech companies are working together to take advantage of it. However, 5G enabled smartphones, laptops, and software solutions will need to run on dependable networks to apply to consumers.
By working to develop powerful and affordable 5G products, Marvell and Analog Devices have smartly positioned themselves as pickax and pan vendors in the technological gold rush.