RED BANK, N.J.--Driven by broadband, wireless, and other sectors, the slumping communications chip and equipment markets are projected to show a modest upturn in 2003, with a full recovery due in the 2004 or 2005, according to the top executive of GlobespanVirata Inc.
In total, the worldwide communications chip market is projected to grow by an estimated 20% in 2003 over 2002, said Armando Geday, president and CEO of GlobespanVirata, a Red Bank-based supplier of DSL chips, communications processors, and packet-processing solutions.
The projection could be welcomed news for chip makers and OEMs. In total, the worldwide communications IC and optical components markets fell a staggering 37.7% last year, from $76.667 billion in 2000, to $47.799 billion in 2001, according to Dataquest Inc. of San Jose. At the same time, Dataquest predicts flat growth in this segment for 2002 over 2001, it was noted.
"I think we will see some growth in 2003," Geday told SBN. "Most of the growth will be close to the consumer space," he said, referring to the broadband and wireless sectors.
Telecommunications remains weak, especially in the long-haul. "It's not a meltdown, but there's an overcapacity situation in the market," he said.
So when will the slumping communications IC and equipment markets recover? "This is a long down cycle," he said. "We could see a pick up in demand in '03. We could see a recovery in '04 and '05," he added.
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