Base station chip market poised for growth as 3G transition accelerates, according to IDC report

June 2, 2004

1 Min Read

MOUNTAIN VIEW, Calif. -- After several years of sluggishness due to the slowdown in wireless infrastructure spending, the base station semiconductor market is now posting healthy growth. According to a new IDC study, the market is expected to reach $1.9 billion in 2004 and eventually grow to $2.4 billion by 2008.

"Stronger OEM-backed standardization activity, such as OBSAI and CPRI, along with migration to off-the-shelf chip approaches will be the major trends to follow in this segment," said Sean Lavey, program manager at IDC. "We believe further cost reductions delivered at the chip level for key 3G baseband, transceiver, and power amplifier subsystems will help jumpstart expansion and upgrades to data-enabled cellular networks."

Continued adoption of 2.5G and 3G data services within key first-wave regions, coupled with demands for basic voice services in other parts of the world, will continue to fuel spending for base station gear. In particular, the 3G segment, which includes WCDMA, CDMA2000 and upcoming TD-SCDMA air interface standards, will become the major driver as it posts a compound annual growth rate (CAGR) of 28% by 2008.

IDC

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