DSL semiconductor market set for fall

The DSL semiconductor market is set to decline 21% to US$878 million in 2003, according to IDC. The analyst house blames the fall on slowing equipment sales coupled.

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By  Neil Denslow Published  July 26, 2003

The DSL semiconductor market is expected to decline 21% to US$878 million in 2003, according to IDC. The analyst house blames the fall on slowing equipment sales coupled with cost reductions achieved due to the integration of the communications processor and DSP transceiver into CPE designs. However, IDC predicts that the market will rebound in 2004 and 2005, before tapering off again. Overall, the analyst house expects the DSL semiconductor market to decline at an annualised rate of -5% between 2002 and 2007.

Among these general trends, however, there are regional variations. By 2007, the rest of the world category will show a healthy compound annual growth (CAGR) rate of 13%, while Japan will show a –43% CAGR for the same period.

"Although growth in emerging markets and equipment replacement will help prop up the DSL semiconductor market, continued price erosion and market saturation in key regions of the world will limit the opportunity for DSL chip vendors going forward," says Ken Furer, research analyst IDC.

"China, Latin America, and India are areas where IDC sees potential for growth,” he adds.

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