Global demand for wireless local area network (Lan) semiconductors remains
strong, driven by technology advancements in 802.11 such as single-chip
low-power devices and production of pre-N and draft-N chipsets.
Analyst firm
IDC estimates that
the worldwide wireless Lan semiconductor market will reach a value of $3.2bn by
2010, representing a compound annual growth rate of 17 per cent.
While industry-wide competition has continued to force prices down,
opportunities "continue to abound" for wireless Lan chip suppliers, according to
IDC.
The primary growth opportunity is in embedded applications such as mobile
phones, and in select consumer electronic designs.
"To remain viable, chip vendors must think about wireless Lan as a portfolio
technology that can complement products in broadband, wired networking, consumer
devices, and PC or mobile device designs," said Celeste Crystal, senior research
analyst at IDC's semiconductors group.
"By focusing on end markets and the ecosystem, wireless Lan chip vendors will
differentiate products and drive pricing and product differentiation in the
industry."
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