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WLAN semiconductor market to see 29 percent growth

Posted: 20 Sep 2002 ?? ?Print Version ?Bookmark and Share

Keywords:WLAN semiconductor? pc? rf? cmos?

The worldwide WLAN semiconductor market will achieve a CAGR of 29 percent over the next five years, predicts market intelligence and advisory firm IDC.

The total WLAN semiconductor revenues is expected to increase from $331 million in 2001, to $1.16 billion in 2006, a growth which will be promoted by decreasing power, size, and cost requirements that will enable embedded solutions to become the more prevalent form factor, states IDC in its report entitled "Worldwide WLAN Semiconductor Market Forecast and Review, 2001-2006." According to Ken Furer, research analyst with IDC, PC vendors will increasingly shift toward an embedded approach as the demand for mobile connectivity makes WLAN an attractive offering within notebook PCs.

The emergence of dual-band chipsets will also be a major trend to watch, especially as pricing for these systems decline steadily going forward. IDC expects the dual-band approach will become predominant by 2004, as assurance of backward compatibility to 802.11b and future proofing to 802.11a becomes an important selection criteria.

Further, IDC has observed that WLAN semiconductor vendors continue to post strong sales growth, especially for 1H of this year. Specifically, Intersil remains the leading supplier, while Agere and others have come knocking on its door. "As margins become further constricted, IDC believes this space will favor only a handful of vendors that are able to ride the cost curve by specializing in this market. Certain vendors, which can leverage lower manufacturing costs, particularly in digital and RF CMOS should have a distinct advantage," Furer added.

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