CEVA and Infineon: A Winning Combination

Event Summary

June 7, 2010 – CEVA, a provider of silicon intellectual property (SIP) solutions for DSP cores, announced that the company and Infineon have extended their long term strategic relationship to include the dual MAC, 32-bit CEVA-TeakLite-III DSP core for the future mobile phone and modem platform solutions from Infineon. The agreement enables Infineon to leverage the features and processing offered by the latest generation CEVA DSP architecture while maintaining code compatibility with existing architectures. The new CEVA-TeakLite-III can deliver industry leading performance for modem and audio processing in while maintaining low power and small die size.

Quick Take

Analytical Summary

• Current Perspective: Positive on CEVA and Infineon renewing their existing long term strategic relationship and expanding the agreement to cover the new dual MAC, 32-bit CEVA-TeakLite-III DSP core because this should allow Infineon to stay ahead of the competition and maintain its leadership position in regards to RF transceiver technology for smartphones and MIDs.

• Vendor Importance: High to both CEVA and Infineon, because CEVA as a vendor of DSP intellectual property (IP), needs customers and partners that will incorporate its IP into a design while Infineon, as a maker of RF transceivers, needs cutting edge DSP technology especially in the form of IP that can be embedded into their proprietary designs.

• Market Impact: Moderate on the mobile device silicon market segment, because these vendors have been working together for many years and have already secured a significant coup via the deployment of their joint efforts in both the Apple iPhone and iPad products. However, the new release carried no time targets for availability making immediate impact difficult to ascertain and provides competitors time to formulate their responses.

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Competitive Positives and Concerns

Response & Recommendations

Buyer Actions

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