ADSL chip shipments should grow 150%, IDC says

With an expected boom in ADSL and cable modem sales, the overall modem semiconductor market will see moderate growth through 2002, according to a study by IDC. Revenues for the worldwide modem semiconductor market totaled $US1.2 billion last year. Analog modem chips, led by V.90, capture 80% of the overall market revenue, and V.90 will keep the top spot at least until 2002, IDC says.

With an expected boom in Asynchronous Digital Subscriber Line (ADSL) and cable modem sales, the overall modem semiconductor market will see moderate growth through 2002, according to a study by International Data (IDC)

Revenues for the worldwide modem semiconductor market totaled $US1.2 billion last year, IDC said. Analog modem chips, led by V.90, capture 80% of the overall market revenue, and V.90 will keep the top spot at least until 2002, according to the study, "Worldwide Modem Semiconductor Market Review and Forecast, 1998-2002."

But by 2002, the share of analog modem chips will decrease to 65%, while ADSL modem chips will have a compound annual growth rate of nearly 150% and cable modem chips should post about 50% growth, the Framingham, Mass., research firm said.

While ADSL and cable modems are currently shipping in small volumes, they will sharply increase by 2002, IDC said. However, chips for analog modems will sharply decline through 2002 as faster digital modems replace analog modems, the research firm said.

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