0114-Qualcomm up, Intel down

LAS VEGAS ― It’s obvious that Qualcomm and Intel are taking different paths in the 2014 International Consumer Electronics Show (ICES) here.

Qualcomm is making a fast move toward connected devices, while Intel is not.

The former is also seeking a competitive edge in chips for automotive and technology industries, a key theme at the world’s biggest electronics trade shows.

Korean CEOs flocked to the Qualcomm booth.

Qualcomm chips are being adopted by many but Intel’s chip to be used in wearable devices is being questioned.

At ICES, Qualcomm unveiled an authorized new application processor to go with a car infotainment system. The company has already been supplying its chips supporting high-speed Long-Term Evolution (LTE) networks to Audi. Qualcomm officials said it inked several deals and is involved in additional business talks with technology leaders.

“SK hynix CEO Park Sung-wook learned how Qualcomm’s strategy shift is smoothly underway. The firm plans to shift focus to advanced application processors possibly to be used in cars to ensure business sustainability,” an SK official said.

Samsung Display CEO Park Dong-geun also showed interest in how Qualcomm is diversifying its business structure during his visit to the Qualcomm booth, said a Samsung official, requesting anonymity.

“The automotive industry is open to accept new technologies for innovation and that means chip suppliers will have new business opportunities. Qualcomm is leading the way and I think Samsung Electronics will catch up,” said the official.

Samsung Display is closely collaborating with Samsung Electronics, the world’s biggest smartphone maker, in several futuristic business projects including wearable devices and corporate solutions.

In contrast, Intel received little interest during the show as its latest strategy and chips introduced at ICES were not appealing; and the company failed to brush off its image as a traditional PC-oriented company.

Experts said that while Qualcomm sent a clear message about its migration into new territories, Intel tried to resort to “emotional rhetoric and hard-to-understand technical theories during its press conference.

“Intel’s Quark chips are receiving a lukewarm response and I didn’t get any concrete plans from the company from this year’s tech fair. One of the key points you should keep in mind that the U.S. chipmaker is still dependent upon unprofitable PC chips,” an official at Dutch-based microchip designer NXP Semiconductor.

“I think it is Intel’s biggest dilemma that prevents its transition toward connected devices,” he added.

Its CEO Brian Krzanich recently said it will delay the production of its Broadwell chip due to a “density defect issue” that impacts the number of usable chips.

“Intel is feeling a sense of urgency. Its business in Korea is also struggling hit by Samsung and LG moves to cut conventional PCs. Samsung and LG may buy Intel’s new chips for wearable devices; however, the volume won’t be high,” said another Samsung official during the show.