The Linley Group Releases Communications Semiconductor Market Forecast Projecting 20 Percent Growth in 2010

Strong Recovery Now, Modest Growth Through 2014


MOUNTAIN VIEW, CA--(Marketwire - August 19, 2010) - On the back of renewed enterprise spending in the first half of 2010, the wired communications semiconductor market is on track for 20 percent growth in 2010, according to the Linley Group's most recent report released today, "Communications Semiconductor Market Forecast 2009-2014."

"As data centers continue their transition to new networking technologies, such as 10 Gigabit and faster Ethernet, we anticipate a strong recovery this year and potential for modest growth in 2011 and thereafter," said Joseph Byrne, senior analyst at The Linley Group. "We also see emerging economies, such as India, contributing significantly to growth in overall networking IC sales. Although visibility remains limited because of volatile economic conditions, we expect that the communications semiconductor market will continue to expand through 2014."
Report highlights include:

  • Ethernet ICs will be the fastest growing category in 2010, with Ethernet ASSP revenue projected to rise by nearly 40 percent this year.

  • For the five-year period from 2009-2014, multicore processor sales are expected to accelerate and should grow at a compound annual growth rate (CAGR) of 28 percent.

  • Network processors remain one of the fastest growing categories, with a projected CAGR of 11 percent.

  • Carrier investment to support new technologies like IPTV and 4G cellular could accelerate growth in the coming years in areas such as PON, home networking, FPGAs, and embedded processors.

  • Deployment of massive data centers to support initiatives such as cloud computing may accelerate adoption of 40 Gigabit and 100 Gigabit Ethernet.

The Linley Group has developed its forecast using careful analysis of public financials of OEMs and chip suppliers, as well as enterprise and carrier spending trends. The report provides in-depth information on wired-communications semiconductor product categories including network processors, 40 and 100 Gigabit Ethernet components, PON and VDSL transceivers, security accelerators, network search engines, and optical-transport ICs. Also included are forecasts for PCI Express and RapidIO interconnect chips, CPU IP, FPGAs, and embedded microprocessors -- including multicore processors.

Availability

"Communications Semiconductor Market Forecast 2009-2014" is currently available directly from The Linley Group. For further details, including pricing and a list of included tables, visit http://linleygroup.com/Reports/market_forecast_rpt.html.

About The Linley Group

The Linley Group is the industry's leading source for independent technology analysis of semiconductors for networking, communications, mobile, and wireless. The company provides strategic consulting services, in-depth analytical reports, and Linley Tech events focused on advanced technology topics. The Linley Group is also the publisher of Microprocessor Report, the leading technical publication for unbiased analysis of high-performance processor technology. For insights on recent industry news, subscribe to the company's free email newsletters: "Linley Wire," "Linley on Mobile," and "Processor Watch."

Note to editors: To speak to an analyst from The Linley Group about this report, please contact: Erika Powelson, Orr & Company, 831.424.1811 or email erika@orr-co.com.

Contact Information:

For additional information, please contact:
Candace Doyle
The Linley Group
408-370-7631
candaced@linleygroup.com

Erika Powelson
Orr & Company
831-424-1811
erika@orr-co.com