Both the microcontroller and digital signal processor markets are expected to rebound in 2002 following sharp drops this year, according to iSuppli Corp.
Microcontroller and DSP markets have declined 40% and 45% from a year ago, respectively, the company said. But this quarter should mark the low point in their fortunes.
Microcontroller revenues are projected to rise from $9.8 billion in 2001 to $10.3 billion and then on to $12.4 billion over the next two years ending their worst decline in market history.
Similarly, DSP revenues are expected to increase modestly from $4.2 billion in 2001 to $4.3 billion next year ending the first year of decline in this category ever, followed by a jump inrevenues to nearly $5.5 billion in 2003.
"Most manufacturers of these devices have continued to invest in making their platforms more powerful and easier to use over the last year, and will see improving demand in their target markets through 2005," the company said.
Many MCU vendors are adding DSP-like functionality to their MCUs, while DSP vendors are adding MCU-like instruction sets for control code to their DSP products, in effect blurring the application separation that has existed in these marketplaces for years, iSupply said. "It will be interesting to watch further architectural developments in both segments to see who will win the architectural war."