Application processors to drive handset IC growth

Application processors to drive handset IC growth
By John Walko, CommsDesign.com
February 28, 2003 (11:40 a.m. EST)
URL: http://www.eetimes.com/story/OEG20030228S0014

OYSTER BAY , NY — Applications processors represent the biggest opportunity for semiconductor manufacturers targeting the mobile handset business, according to a just published report from market research group Allied Business Intelligence (ABI).

In the report, entitled "Handset Integrated Circuits: High Demands = Inevitable Integration," the researchers suggest that of the core components in a mobile handset, the market for applications processors is set to grow to a $2 billion business by 2008, with compound annual growth set at 120 percent between now and then.

Not surprisingly, ABI suggests this explosive growth will come as handset makers move quickly to meet demand for 2.5G and 3G phones, and the ever increasing demand for additional functionality in cellular phones and related wireless enabled hand-held devices. The total 3G chipset sector itself is predicted to grow by 'triple digit gains'.

Overall, the market for handset ICs, currently valued at $8.7 billion, is expected to grow to approximately $12 billion by 2008, a compound average annual growth of 5 percent. This available market projection includes the core components in the communications chain, including digital baseband, analog baseband, power management, RF transceiver and applications processors.