The market for semiconductor components specific to wireless local area networks (Lans) almost doubled year-on-year to reach $471m in 2002, industry analysts have reported.
IDC said that the 98 per cent growth was due to continued strength in the enterprise space, as well as the rapid deployment of home networks and public hotspots.
"Despite steep 802.11b silicon pricing declines, most vendors experienced robust sales growth in this segment as wireless Lan shipments remained strong," said Ken Furer, research analyst at IDC.
"Going forward, IDC expects to see 802.11b pricing below $8 by the end of 2003 as 802.11g and dual-band 802.11a+b/g solutions begin their ramp up towards broader market acceptance."
The analyst's Worldwide WLAN Semiconductor Competitive Analysis 2003 found that Intersil remained the leader in this space during 2002 with 51 per cent revenue market share, while Agere stayed in the number two spot.
RF Micro Devices, Atheros, Texas Instruments and Broadcom came in behind the market leaders.
"Going forward, IDC believes that this market segment is due for a shakeout," warned Furer. "There are more vendors with chip solutions than the segment can realistically support."
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