The Next Generation of Mobile Communications Offers Vast Scope for the Application of Semiconductors

Dec. 27, 2011 - PRLog -- MOUNTAIN VIEW, Calif. – Dec. 27, 2011 – Communications technology in most countries has evolved far beyond a simple voice service to encompass video broadcasting. The need for improved functionality, particularly in smart phones and long-term evolution (LTE) phones, has multiplied the RF components in mobile phones, which, in turn, has raised the cost share of these components in the baseband module.

However, the demand for added functionality and the technical complexity of integrating many components onto a single module poses a significant technical challenge in the design of smart phones. This issue can be assuaged to some extent through outsourcing and the complete integration of RF semiconductor components.

New analysis from Frost & Sullivan, World Market for Semiconductors in Communication, finds that the market earned revenues of over $88.17 billion in 2010 and estimates this to reach $157.22 billion in 2017.

“New features and innovative technology has led to an increase in mobile sales, specifically in the Asia Pacific region, which has encouraged the adoption of mobile applications,” says Frost & Sullivan Semiconductor Industry Manager Aravind Seshagiri. “This, in turn, has enhanced the global demand for RF semiconductors.”

As the communication industry accounts for almost 27 percent of the total semiconductor sales worldwide, a robust understanding of the handset industry is vital for OEMs. As the new-age devices employ semiconductors, market participants will be able to generate higher revenue, which can be channeled into new application areas, specifically in the wireless segment.

“With the advancements in mobile technology, there has been an increased delivery of services, particularly in developing nations such as China, Japan and parts of South America and Europe,” notes Manickam. “The lower costs and intense competition in the semiconductor market have thrown the spotlight on industry partnerships and technological advancements.”

These new market trends offer manufacturers a chance to tap the potential of the market and expand their market presence.

If you are interested in more information on this study, please send an email to Sarah Saatzer, Corporate Communications, at sarah.saatzer@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

World Market for Semiconductors in Communication is part of the Semiconductors Growth Partnership Services program, which also includes research in the World RF handset semiconductor market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.