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Handset processor, connectivity chip shipment update

Posted: 25 Nov 2010 ?? ?Print Version ?Bookmark and Share

Keywords:connectivity? Bluetooth? GPS? Wi-Fi?

ABI Research expects shipments of handset semiconductors to increase by 5.5 percent in 2010 and to continue growing through the next three years, indicating the critical role they play in the electronics market.

"The increasing shipment rates of handset processors and connectivity chips are the major engines driving handset semiconductor market growth," industry analyst Celia Bo said in an ABI Research report, which forecasts a 12 percent growth in shipments of handset semiconductors.

The report identifies Qualcomm, MediaTek, and Texas Instruments as the top players in the overall handset chipset market as they have cornered some 80 percent of the market share. Qualcomm has a strong lead, particularly in the high-end smartphone segment, thanks to its IP library and a nearly full range of technologies.

MediaTek has a wide range of 2.5G and 2.75G chipsets and dominates the low- to mid-priced chipset market. TI, meanwhile, has been gradually moving from the 2.5G and 2.75G chipset markets toward the 3G and 4G sectors. TI's shipments of the older chipsets are expected to decline in 2010 and virtually cease in 2012.

The report indicates that total revenue from handset Bluetooth, GPS, and Wi-Fi chipsets will increase more than 15 percent in 2010 and possibly hit $3.5 billion in 2015. Among connectivity chips, Bluetooth is expected to have the highest attach rate followed by GPS. Wi-Fi chips, however, is expected to show the biggest revenue increase over the next five years.

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