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iSuppli: Qualcomm, TI outran wireless chip market in Q2

Posted: 30 Oct 2007 ?? ?Print Version ?Bookmark and Share

Keywords:wireless chip market? Q2 figures? iSuppli report?

Two chipmakers had outpaced the wireless semiconductor market in Q2, according to market researcher iSuppli Corp.

Qualcomm Inc. achieved wireless semiconductor revenue of $1.37 billion, up 8.6 percent from $1.26 billion in Q1. Second-ranked player Texas Instruments Inc. sold $1.23 billion worth of wireless-oriented semiconductors, up 7 percent from $1.15 billion in Q1. These figures consist of revenue from sales of application-specific semiconductors for wireless applications, including mobile handsets, wireless infrastructure equipment, WLANs and connectivity products.

With the global wireless semiconductor market expanding by 4 percent during the period, the two companies increased their market share. Qualcomm's share rose to 18.2 percent in Q2, up from 17.4 percent in Q1. TI's share increased to 16.4 percent in Q2, up from 15.9 percent in Q1.

"Qualcomm retained the top spot in total wireless semiconductors for the second quarter in a row," said Francis Sideco, senior analyst, wireless communications, for iSuppli. "The company, so far, is weathering its recent legal challenges to capitalize on strong growth in sales of chips for W-CDMA mobile handsets and semiconductors for wireless infrastructure equipment." Meanwhile, TI held on to its second-place position.

"Texas Instruments achieved strong growth in mobile-handset and cellular infrastructure chips in the second quarter, allowing it to outgrow the market," Sideco added. "The company gained market share in mobile-handset semiconductors for 2G mobile phones due to the ramp up of its LoCosto single-chip solution for ultralow-cost handsets and entry-level phones."

While Qualcomm and TI had maintained their market dominance, NXP posted the strongest growth among the top-five wireless semiconductor suppliers in Q2. NXP's wireless semiconductor revenue rose to $438 million in Q2, up 16.2 percent from $377 million in Q1. The company increased its market share to 5.8 percent in Q2, up six-tenths of a percentage point from 5.2 percent in the first quarter. NXP benefited from strong sales of mobile handset baseband chips.

iSuppli predicts global wireless semiconductor revenue will rise by 4.5 percent in 2007 to reach $56.1 billion, up from $53.7 billion in 2006.

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