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Communications chip is a $36 billion market


The Communications Chip market - which we segment into Broadband, Cellular, 802.11x/Bluetooth, VoIP, Optical, and General Networking - generated estimated $36.6 billion in the year 2007. That revenue was generated by shipping an estimated 3.73 billion chips during the year. The analysis comes from our annual chip report, Global Communications Chip Market 2008, published today.

Texas Instruments leads the market earning around $6.6 billion and thus holding 18% of the communications chip market share. Other leaders in the market include Freescale, ST Microelectronics, Broadcom and Qualcomm. Collectively the top 5 chip vendors had revenues of about $21.3 billion which accounted for 58% of the market revenues.

Broadband and cellular chips were the major contributors of revenue to the overall Communications Chip market. Broadband contributed 22.6% of the total revenues while 21.7% were contributed by the chips consumed by cellular devices. Within our segmentation, Optical Networking chips contributed the least i.e. $1.4 billion of the total communications chip revenues for the year.

During the year, communications chip companies were focused on making their chips feature rich, striking a balance between size optimization and increasing power, and producing multifunctional chips while containing the costs. While the long term migration plans are yet to be ironed out several startups are taking the opportunity to serve the niches and alternatives.

TOC of the report can be accessed here.



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