Flash Cards Will Be Bright Spot of Worldwide Storage Semiconductor Market, According to IDC
December 22, 1999
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Integration on Chips Will Lead to Industry Consolidation
FRAMINGHAM, Mass., Dec. 21 /PRNewswire/ -- Flash cards are stealing the spotlight in the worldwide storage semiconductor market. At yearend 1999, flash card revenues will amount to $474 million, accounting for less than 8% of the market's $6 billion total. Through 2003, however, they will increase at a compound annual growth rate (CAGR) of more than 43% and account for almost a quarter of the market's revenue. This data comes from a new International Data Corporation (IDC) report. The other big news in IDC's report is chip integration.
The first integration phase was to process discrete digital functions onto one chip and to group together analog functions. Now, digital and analog functions are being integrated on the same chip, which requires extensive expertise in mixed-signal technologies.
"Advances in semiconductor process technology are enabling chip makers to integrate more functionality onto a single chip," said Xavier Pucel, manager of IDC's Semiconductors research. "With the integration as well as flash card market growth, the best opportunities for vendors in this market will be in digital/mixed-signal integrated circuits and flash memory."
The largest segment of the market, hard disk drives, will provide dwindling opportunities. IDC expects this segment to decrease in size from $3.3 billion in 1999 to $3.0 billion by 2003.
"Semiconductor suppliers to the hard disk drive industry should leverage their technology to take advantage of the other drive markets that promise some growth potential," Pucel said.
IDC recently published 1999 Storage Semiconductor Year in Review: The Promise of Mixed Signal Technology (IDC ##B21090). This report reviews the market's 1999 performance and forecasts growth through 2003. The report splits the market into four segments - hard disk drives, optical disk drives, removable magnetic disk drives, and flash memory cards - and forecasts each segment. The report discusses key trends in the market as well as opportunities. To order the report, please contact Patrick Steeves at 1-800- 343-4952, extension 6787 or at psteeves@idc.com.
About IDC
IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 42 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at idc.com.
IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.
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SOURCE International Data Corporation
CONTACT: Xavier Pucel, 650-962-6485, xpucel@idc.com or Christina Casey, 508-935-4622, ccasey@idc.com both of International Data Corporation
Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 113987
Web site: idc.com
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