Embedded CPU chip, the leading product of Ingenic Semiconductors, is mainly applied into two fields, i.e., smart phone and tablet PC.

In the aspect of smart phone, Ingenic Semiconductor is developing solution with Shanghai Spreadtone Technologies. It purchases baseband chip from Spreadtrum Communications. TCL is the main client. This program is under testing at the moment. Considering the various smart phone models and complicated market situation, Ingenic mainly dedicates to tablet PC market.

For high-end tablet PC manufacturers, such as Apple and Samsung, they use ARM chips in their products. Second-tier tablet PC manufacturers including ZTE, HUAWEI and Lenovo also adopt processor based on ARM. Since ARM processor will cost USD15 and the sales price of white-box tablet PC is less than RMB1, 000 (about USD158), therefore, it is very sensitive to the price of CPU, and probably uses MIPS.

J4770 chip produced by Ingenic has been applied in the white-box tablet PC Ainol Novo7 which is priced at RMB599 (about USD95). It has realized small-scale shipment. Besides, Ingenic sells J4770 products to Foxconn. Before that, Foxconn purchased J4760 from Ingenic.

Shipment of white-box tablet PC accumulated to 1.9 million sets approximately in 2011Q1 in China and it is expected to register about 8 million sets for the whole year of 2011. The estimated market size will reach USD72 million if counted at the J4770 unit price of USD9.