Mountain View, CA--November 20, 1996--Worldwide revenues from semiconductors in LAN switches will be up 98.3 percent, reaching $160.2 million by year end 1996, according to International Data Corp. (IDC; Framingham, MA).
Increasing switch sales, which are expected to triple, are a key driver in spite of the forecasted 34.3 percent decline in average semiconductor content per switch.
These numbers are part of a new report, "Worldwide LAN Equipment Semiconductor Market Review and Forecast," now available from IDC's Semiconductor Market Planning Service.
Semiconductors in LAN equipment overall will reach $1.36 billion, up 13.3 percent for the year. Although LAN equipment is a relatively small market for semiconductors, its growth is substantial when compared to IDC's forecasted 6 percent drop in revenues for the semiconductor industry as a whole.
According to the report, the value of semiconductors in LAN hubs will reach $701.2 million by year end 1996, down slightly from $704.9 million in 1995. The decrease is a result of continuing integration of functions and declining chip prices, rather than slowing systems sales. IDC projects system sales growth of 24.5 percent for 1996, while silicon content of the average hub drops 20.1 percent.
Revenues by semiconductor component type in LAN equipment is shifting. Logic ASICs revenues will heat up as communications functions are integrated into logic ASICs, boosting revenues 52 percent over 1995 revenues, and driving past expected year end microperipheral revenues of $419.3 million.
IDC's report quantifies worldwide semiconductor content by semiconductor device type at the bill-of-materials level. Units, revenues, and average selling prices are projected on a quarterly basis for semiconductor components in switches, hubs, network interface cards, and routers through 1996. Annual data are presented through the year 2000.
IDC Research Facility
Mountain View, CA
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