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To: Proud_Infidel who wrote (31052)6/16/1999 11:11:00 AM
From: Proud_Infidel  Respond to of 70976
 
Cellular phone chip sales to hit $13.0 billion in 2003, says In-Stat

A service of Semiconductor Business News, CMP Media Inc.
Story posted 10 a.m. EST/7 a.m., PST, 6/16/99

SCOTTSDALE, Ariz. --Total revenues for semiconductors used in cellular telephones will grow from $6.8 billion in 1998 to $8.5 billion this year, according to a new market forecast by In-Stat here. The market researcher predicts chip sales into cellular and personal communications services (PCS) handset products will increase at a compound annual growth rate of 14% from 1998 to 2003, when total revenues will hit $13.0 billion.

Memory chip revenues in wireless handset applications will grow even faster at 32% during the five-year period. In 1998, cellular phones used $900 million of memory chips and that total will reach $3.5 billion, said analyst Joyce Putscher, director of In-Stat's Converging Markets & Technologies Group in Scottsdale.

The integration of functions on fewer devices will combine low noise amplifier (LNA) and mixer as well as codec with digital baseband or analog baseband and power management with analog baseband, said the In-Stat report.

"There will be a transition from discrete, separate Flash and SRAM packages to one package with stacked Flash and SRAM chips, thereby fulfilling the manufacturer's need for memory density, versatility, and flexibility for building many different models," Putscher said.

During the next four years, digital cellular phones and third-generation handsets will take on a growing number of data services, including "untethered" e-mail and browsers for Internet access in addition to multi-mode phones, which will require higher semiconductor content, noted In-Stat.