MOUNTAIN VIEW, Calif. -- Despite the current industry slump, semiconductor revenues for wireless local area networks are expected to increase at a strong 29% compound annual growth rate between 2000 and 2005, said International Data Corp today.
Worldwide chip revenues for today's 2.4-GHz WLANs will jump 53% to $216 million from sales last year, said a new IDC report. However, the emergence of 5-GHz wireless networks will fuel the strong growth beyond 2001. After an initial surge, the 2.4-GHz segment will only end up increasing at an 8.6% compound annual growth rate during the five-year period, according to the IDC report.
"The WLAN industry is still very young and has yet to prove itself," cautioned Ken Furer, research analyst with IDC's semiconductor group in Mountain View.
IDC said Intersil of Irvine, Calif., remains the dominant supplier in the 2.4-GHz WLAN chip market, with others in hot pursuit--including Agere, Cirrus Logic, National Semiconductor, Proxim, Philips, Texas Instruments, and STMicroelectronics. These suppliers and aggressive startups--such as Atheros, Envara, and Resonext--are gearing up for the 5-GHz wireless LAN segment, noted the research firm.
"As the WLAN semiconductor market matures, products will become more standardized and cost reduction pressures will intensify. This will make it even more imperative for vendors to produce low-cost solutions," Furer said.