Qualcomm lead in mobile ICs faces challenge, says ABI

LONDON – The market for mobile device semiconductors is forecast to grow modestly from 2010 to 2016 with a compound annual growth rate of 5.6 percent, taking the market from $25 billion in 2010 to $35 billion in 2016, according to market analysis firm ABI Research.

ABI Research did not expand on that relatively modest 5.6 percent growth figure, but it may be that it considers higher percentage unit shipment growth will be accompanied by reductions in average selling prices (ASPs) as competition intensifies.

Qualcomm holds a 30 percent market share of the market, according to ABI and has expanded by the acquisition of Atheros Communications to form the subsidiary Qualcomm Atheros, strengthening its wireless connectivity portfolio.

However, consolidation is happening elsewhere and may serve to intensify competition. Intel acquired the wireless business unit of Infineon Technologies AG which gave Intel and an immediate foothold in the mobile semiconductor business. Nvidia acquired Icera Inc. to get itself software-driven modem capability.

"Most of the major suppliers are spending considerable resources on improving their platform solution capabilities," said Peter Cooney, practice director for semiconductors at ABI, in a statement. "Through acquisitions and internal product developments, suppliers such as ST-Ericsson, Broadcom, Nvidia, Marvell and Renesas are transitioning to a platform supplier model. Although Qualcomm currently leads the way, many other suppliers are increasing their capabilities and the competition between suppliers will increase significantly over the coming years."


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