EL SEGUNDO, Calif. -- It's been a terrible year for microcontrollers (MCUs) and digital signal processors (DSPs), but these chip markets are expected to hit the bottom by year's end--with a recovery slated for 2002, according to a new report from iSuppli Corp. here today.
In 2001, the MCU and DSP markets are projected to fall 40% and 45% over 2000, respectively, according to iSuppli, a market research firm based in El Segundo.
Next year, however, these chip segments are expected to rebound. MCU revenues are projected to rise from $9.8 billion in 2001, to $10.3 billion in 2002, to $12.4 billion in 2003, iSuppli said.
Similarly, DSP revenues are expected to increase modestly from $4.2 billion in 2001, to $4.3 billion in 2002, to $5.5 billion in 2003, they said.
"Despite the widespread use of MCUs and DSPs in a wide range of products, the market for these embedded processors for this year has been terrible at best as virtually all application segments have taken a dive due to the softness in the economy," said Jay Srivatsa, who tracks the industry for iSuppli.
"Despite this, 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," he said.