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WLANs chips buck downward trend

The wireless LAN (WLAN) chip market has defied the slump in the chip market and recorded sales of eight million units in 2001, an increase of 23% from the previous year, says In-Stat/MDR.

The chip market may have struggled over the last year, but wireless LAN (WLAN) chips have managed to buck the trend and record sales of eight million units in 2001. According to research group, In-Stat/MDR, the figure represents a 23% increase from sales in 2000.

The upward trend is expected to continue this year with the WLAN chip market already reporting healthy growth and predicting that shipments will top 14 million units.

“The incredible journey for WLAN chips is just beginning,” says Allen Nogee, senior analyst, In-Stat/MDR. “For many years, the use of WLANs has been limited to a very few specialised vertical applications. However, as standards like 802.11a and 802.11g are introduced into both the home and the enterprise, the market will move in a new direction, gaining even greater momentum.”

However, the positive sales figures failed to impact revenue for 2001, which fell by 4% to US$216.9 million from 2000, with falling chipset prices blamed for the drop. Revenue figures, however, are expected to rebound in 2002 and reach $324.5 million.

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