Xilinx, Inc. (XLNX - Free Report) recently announced that Samsung Electronics has adopted the Xilinx Versal adaptive compute acceleration platform (ACAP) to roll out 5G worldwide. The application of Xilinx’s advanced platform to Samsung’s solutions is expected to boost 5G performance.
Xilinx claims that its Versal ACAP offers a universal, flexible and scalable, highly-integrated, multicore, heterogeneous compute platform that can cater to multiple operator requirements. Notably, built on the 7nm process technology, the Xilinx Versal ACAP is designed for AI inference in the data center, automotive, 5G infrastructure, aerospace, defense, and test and measurement applications.
Beamforming technology, a key requirement for 5G, transmits several data streams simultaneously to multiple users via a single spectrum, enabling an increase in 5G network capacity. However, such robust performance requires high compute density and high-speed on-chip and off-chip connectivity.
Traditional FPGAs are unable to optimally meet these requirements. Meanwhile, at low power consumption, Xilinx Versal ACAPs provide exceptional compute density to perform real-time, low-latency signal processing.
Notably, 5G infrastructure requirements are still evolving, giving ample opportunities for the adoption of Xilinx’s well-known adaptive compute.
Onset of 5G Intensifies Competition
The fifth generation of cellular technology or 5G has accelerated the proliferation of video and other bandwidth-intensive applications with a data transmission rate that is about 10-100 times faster than the existing 4G networks.
Billed as the technology of the future with faster download speed and low latency, 5G is touted to be the primary catalyst for next-generation IoT services. These include connected cars integrated with the augmented reality and virtual reality platforms, smart cities and connected devices, all of which are likely to revolutionize key industry verticals.
Per a Research and Markets report, the 5G infrastructure market is expected to witness a CAGR of 67.1% to reach $47.78 billion by 2027 from $784 million in 2019. Further, according to a Verified Market Research report, the global 5G chipset market is valued at $1.96 billion for 2020. The market is projected to reach $21.87 billion by 2026, at a CAGR of 44.1% during 2021.
These projections are encouraging other big semiconductor players to put in strong efforts in bringing 5G mainstream in 2020.
In February, Intel (INTC - Free Report) rolled out Atom P5900, a system-on-a-chip (SoC) based on the nanometer (nm) technology, for wireless base stations, aimed at the accelerated deployment of 5G networks. The latest SoC supports low latency and high bandwidth to power 5G base stations.
Moreover, Qorvo (QRVO - Free Report) is currently supplying products for more than 20 5G field trials. The company has introduced Front-End Modules (FEMs) that can function on both pre-5G and 5G architecture. Its GaN technology also enables FEMs to support the emerging 5G infrastructure.
Notably, Broadcom’s (AVGO - Free Report) growing presence in the networking chip market cannot be overlooked. The company’s robust switch chips are utilized by networking equipment providers, including Arista. The company is benefiting from strong demand for wireless solutions and expansion of product portfolio.
However, the growing usage of Zynq RFSoCs and ACAP products for 5G deployments by both basebands and radios is a positive for Xilinx. The 7nm ACAP Versal platform is expected to be a game changer.
Xilinx currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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