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5V Technologies Ltd. (“5VT”) seeks to become a leading
fabless developer of versatile and complete system-on-a-chip
(SoC) solutions that address a myriad of applications
in the broadband communications market, with an initial
focus on the fast developing VoIP and Wifi phone markets.
5VT is currently developing a 32-bit MCU SoC with system
software that is being targeted at ODM/OEM VOIP/Wifi
phone manufacturers, of which the world’s largest are
in Taiwan. Founded in California in 2003 by a team of
experienced IC designers and marketers, 5VT intends
to conduct its R&D and production activities from
its ASIC design center in Taipei and marketing and sales
from offices in Taiwan, California, and PRC.
The barriers to entry to the Wifi/VOIP chip market are
high, as the development of such chips requires substantial
IC design and related technical expertise, as well as
a detailed understanding of customer requirements. As
a result, there are only two chipmakers, Texas Instruments
(TI) and Broadcom, currently selling VOIP/Wifi chipsets
in any significant volume. 5V seeks to leverage upon its
deep technical expertise, combined with is founders’ close
relationships with key VOIP ODM/OEMs to establish a meaningful
market position. 5V seeks to deliver a feature-rich SoC
that is also cheaper than available offerings from TI
or Broadcom by
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Designing a single-chip solution, which will be
less expensive than TI or Broadcom¡¦s current multi-chip
solutions |
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Designing an universal platform, which can be
used for various VoIP/VoWLAN products |
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Capitalizing on its lower cost development environment
in Taipei, including: |
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Lower costs of R&D and engineering NRE due
to R&D subsidies available from the Taiwan government |
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5V is one of the first three companies to be approved
to beand housed in the government¡¦s Nankang SoC
Development Center, which will save 5V over US$3
2 million in subsidized access to design tools and
subsidized rent |
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Lower overall labor costs |
The worldwide trend towards VOIP-based communications
services is driven by VOIP’s lower costs, greater functionality,
and integration of voice and data applications. The
rapid proliferation of Wifi networks is also a global
trend, and Wifi further extends the utility of VOIP
and creates a convenient, inexpensive approach to wireless
voice communications. Market research firm In-Stat/MDR
forecasts that the number of voice-based Wifi users
will grow at over 120% per annum from 2004 to 2008,
reaching 145 million Wifi voice users worldwide by 2008.
In addition, the number of desktop VOIP phone units
sold per year, estimated at over 8 million in 2004,
is also forecast to grow at over 25% per annum for the
next several years. The movement towards VOIP-based
communications is creating demand for specialized, VOIP-based
customer premises equipment and phones. 5V seeks to
become a leading developer of system-on-a-chip (SoC)
solutions used in both Wifi and desktop VOIP phones.
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