Worldwide VoIP Semiconductor Market to Take Off, Reaching $1.7 Billion by 2008, IDC Predicts

FRAMINGHAM, Mass.—(BUSINESS WIRE)—Dec. 8, 2004— After years of hope, the worldwide VoIP semiconductor market is now experiencing significant growth as the deployment benefits of packetized voice are being continuously proven to service providers, businesses, and consumers. Accelerated adoption across all system segments will enable the market to reach $1.7 billion by 2008, with a compound annual growth rate of 48% CAGR for 2003-2008, according to a new forecast from IDC. Within this market, the broadband gateway segment targeting consumers will drive the strongest increase as DSL and cable modem customer premise equipment increasingly integrates VoIP functions.

"The transition to VoIP is well underway, with sales rising steadily for media gateways and softswitches within service providers, IP PBXs and IP phones within businesses, and broadband gateways within small businesses and consumer segments," said Sean Lavey, program manager for Semiconductor Research at IDC. "The semiconductor vendors building products that run at the heart of these designs will benefit from this migration, especially as standards continue to mature."

To fuel the switch to VoIP, semiconductor vendors will need to show OEM's that they are committed to driving down costs in future designs and delivering more than just a highly integrated chip product. IDC believes turnkey solutions bundled with some key underlying software will be an important deliverable to showcase to help OEMs build solutions much faster than ever before.

IDC's new study, Worldwide VoIP Semiconductor 2004-2008 Forecast and Analysis (IDC #32257), examines voice processing-specific semiconductors within VoIP end markets. This includes digital signal processors (DSPs), ASSP/ASICs, PLDs, and related analog components (SLICs and SLACs) that are responsible for the termination and conversion of traditional POTS voice traffic into IP packets, and vice versa. A top-line forecast for the semiconductors used within VoIP systems is provided, segmented out by key end markets for 2003-2008. Competitive analysis on the semiconductor vendors that play a role in these designs is also included along with their OEM customers.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

For additional information about IDC's Semiconductor research, please contact Anne-Sophie Dankens at adankens@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

All product and company names may be trademarks or registered trademarks of their respective holders.



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