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Connectivity chips ‘critical’ for handset semiconductor market growth says ABI

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The total revenue delivered by handset semiconductor shipments is forecast to increase approximately 5.5% this year, according to ABI Research. And the industry analyst forecasts that the trend will continue through the next three years, resulting in a total estimated revenue growth of 12% in 2013.

The increasing shipment rates of handset processors and connectivity chips are said to be the major engines driving handset semiconductor market growth. "Connectivity chips will play a critical role in driving handset semiconductor market growth in the next five years," said ABI Research principal analyst Peter Cooney. "The total revenue from handset Bluetooth, GPS, and Wi-Fi chipsets is forecast to grow more than 15% this year and estimated to hit $3.5billion in 2015." According to ABI, Bluetooth has the highest attach rate compared to other connectivity chips: its average penetration rate is expected to be 55% in 2010. The penetration rate of GPS is expected to be 23% this year, and will keep increasing in the next five years to reach 45% in 2015. The revenue increase from Wi-Fi chips will be the highest among the three connectivity chips over the next five years, estimated to reach $1.4bn in 2015.