Commit shuts its doors, a victim of slow TD-SCDMA rollout

Troubled Chinese chip firm Commit Inc. has closed its doors.

The TD-SCDMA chip supplier has been unable to obtain fresh funding, directors said in a short statement issued this morning.

The Shanghai-based company, one of five mainland TD chip firms, revealed last week it was on the brink of collapse and had not paid its staff for three months.

The board said the shareholders had reached a consensus with employees over unpaid salaries, but did not provide details.

Mainland web sites have speculated that NASDAQ-listed Spreadtrum, the biggest TD-SCDMA chip developer, might bid for the assets. However, its IPR remains in the hands of its shareowners, including Spreadtrum rival Texas Instruments.

Other shareholders include Nokia, LG and state-owned vendors Datang and Potevio.

The collapse is one more setback in the already-delayed development of the mainland 3G technology.

Commit was the primary TD-SCDMA chip partner to handset leader Nokia, which has not yet launched a device. A spokesman said the company still intended to go to market with TD phones some time this year.

The company appears to be a victim of the slow TD-SCDMA rollout. China Mobile began its first public trial on April 1 with just 60,000 phones and data cards on order.

The Ministry of Industry and Information has put the issue of 3G licenses on-hold over the past three years, awaiting the commercialization of TD-SCDMA. Although it plans an reshuffle after the Olympics, it has not yet put a timetable on 3G licensing.
By Robert Clark,


About mtlin

I'm easygoing and sometimes sentimental, also can be very funny. Geek style but social. A Blogger, a Wikipedian and an Engineer.
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