Talk about raising the bar…
And not just slightly raising it, either.
Tech giant Samsung just catapulted it several notches higher – achieving a “world first” in the process.
The company has developed unprecedented 5G mobile technology – a breakthrough that will blast mobile connectivity into the fastlane.
How fast? Up to 100 times faster than current 4G networks.
As Samsung puts it, we’re talking about data transmission on mobile devices that’s “practically without limitation.”
For example, with 5G power, you could send a super-high definition movie file wirelessly in a matter of seconds. Seconds!
At a time when most of the world is still using comparatively plodding 3G and 4G technology, this is a stunning leap forward.
However, there’s one huge obstacle currently standing in the way of 5G becoming a reality.
And that’s good news for us, because the problem creates an investment opportunity…
Our Phones Are Stuck in the Dinosaur Age
As I wrote in our free report, The Seven Most Investable Technology Trends of 2013, the guts of mobile phones are in dire need of an overhaul.
Or, as MIT Technology Review’s David Talbot says, “Smartphones and tablets are… primitive and inefficient inside.”
They’re essentially stuck in the Dinosaur Age.
But upgrading them is no piece of cake.
You see, there’s a separate processor for almost every function. Wi-Fi, Bluetooth, GPS, NFC, 3G, 4G, video processing – you name it – these processors take up space and increase the overall size, weight and cost of mobile devices. So adding another function like 5G into the mix only complicates matters further.
Not only does it require more space, which is already in short supply within mobile devices, it means additional cost, too.
As Robert Aigner, Director of R&D at TriQuint Semiconductor (TQNT), notes, stuffing more functions into phones means eliminating even more radio frequency (RF) interference.
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“A high-end smartphone must filter the transmit and receive paths for 2G, 3G and 4G wireless access methods in up to 15 bands, as well as Wi-Fi, Bluetooth and the receive path of GPS receivers. Signals in the receive paths must be isolated from one another.”
Let me boil down the mumbo-jumbo to one key point…
Without RF filtering technology, our smartphones won’t work. Period.
So while Samsung’s breakthrough is exciting, it makes the task ahead for semiconductor companies “ever more challenging,” says Aigner.
And yet, all the more critical…
The Opportunity Behind Samsung’s 5G Breakthrough
Tech-hungry consumers won’t be willing to wait for faster data speeds while mobile phone component makers get their act together.
So what’s the solution?
The Holy Grail for chip companies would be to develop an RF filter that can be tuned, depending on what function(s) you need at any given second. It would dramatically reduce the number of filters needed in a phone, thereby reducing the manufacturing complexity and costs involved with adding more functionality.
Better technology and lower costs? Yep… I’d say that’s a win-win solution for the mobile phone industry.
And therein lies the opportunity…
With research well underway for a tunable RF filter, we can profit from critical innovations in the space by scooping up the widely known semiconductor leaders.
However, the most profit potential resides in pure-play, micro-cap opportunities. And that’s exactly what I’m researching right now – particularly in the wake of Samsung’s breakthrough.
That’s because as mobile connection speeds keep getting faster, it’s going to force companies that supply other critical phone components to catch up. Quickly.
And that’s exactly where we want to position our portfolios to profit. As my research continues, I’ll keep you posted on the best opportunities as I find them.
Ahead of the tape,