Report: WLAN Chips in the Chips

SCOTTSDALE, Ariz. -- Despite a slow economy, wireless LAN (WLAN) chips were a bright spot in an otherwise dismal 2001 worldwide chip market, according to In-Stat/MDR (http://www.instat.com). The high-tech market research firm reports that the number of WLAN chips sold worldwide in 2001 managed to top 8 million chipsets, up more than 23% from 2000. Early indications illustrate that device sales, and resulting chipset demand, are already up sharply this year when compared with the end of 2001. 2002 chipset units are forecast to exceed 14 million units, an increase of 75% from last year's depressed numbers. "The incredible journey for WLAN chips is just beginning," says Allen Nogee, a Senior Analyst with In-Stat/MDR. "For many years, the use of WLANs has been limited to a very few specialized vertical applications. However, as new 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." While the enterprise will account for the largest consumption of wireless LAN chipsets in 2002, it's the home market that will experience the largest growth rate. Not only are home users adopting WLAN devices for their conventional computer connectivity needs, but other residential uses for WLAN chips, such as wireless video pads, are starting to become popular, especially in Asia. In-Stat/MDR