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Philips leaps into top 5 DSP vendors in 2004 rankings

Posted: 14 Feb 2005 ?? ?Print Version ?Bookmark and Share

Keywords:dsp? forward concepts? cellphone? baseband chips?

Philips Semiconductors turned in a surprise performance in 2004 as the DSP chip market increased by 27.2 percent compared with 2003, to reach a value of $7.8 billion, according to market research company Forward Concepts. The result was below the company's previous forecast of 30 percent.

The principal driver was the wireless communications market, which made up 71.5 percent of the DSP market up from 68 percent in 2003.

Unfortunately, most of the gains occurred in the first half. The second half of the year was relatively flat as Chinese cellphone makers worked through a glut of inventory that had to be bled off, slowing orders for baseband chips, according to Forward Concepts.

Texas Instruments Inc. continues to lead the market, with shipment growth that increased their market share to 49.7 percent. Philips Semiconductor, achieved 400-percent annual growth and moved from the "other" category to fifth. Freescale also did well with 59.1 percent sales growth to expand its market share.

Forward Concepts's top five were: TI, 49.7 percent; Freescale, 12.9 percent; Agere Systems, 9.8 percent; Analog Devices, 7.7 percent; and Philips, 6.8 percent.

Although relatively small in size, the computer market segment grew in 2004 by close to 50 percent, followed by automotive. Forward Concepts said the computer sector would slow in the future, as most disk drive controllers are becoming SoC (system-on-chip) solutions that include read channels, and are increasingly reported as "ASICs." The automotive segment consists mostly of dashboard entertainment and navigation electronics and a small amount of drive-train DSP silicon, where MCUs are "good enough," for now. The automotive segment is also small, but growth is monotonically upwards, and would continue to grow, Forward Concepts said.

Asia Pacific (mostly China, but including Taiwan, South Korea and Singapore) grew to be 52 percent of the market for DSP silicon in 2004 followed by Europe at 20.0 percent, Japan at 17.3 percent and the Americas region requiring 10.7 percent of the world's DSP silicon in 2004.

- Peter Clarke

Silicon Strategies





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