Frost & Sullivan - ASICs in Networking Equipment Market Continues
Growth Despite Threat From ASSPs
PRNewswire - 08:24 a.m. Apr 26, 1999 Eastern
MOUNTAIN VIEW, Calif., April 26 /PRNewswire/ -- The world
application specific integrated circuits (ASICs) in networking equipment
market continues to grow, due mainly to ASIC demand from routers and
switches. However, more and more ASICs are being replaced with
application specific standard products (ASSPs), which is resulting in
declining ASIC demand.
According to new strategic research conducted by Frost & Sullivan
(www.frost.com), World ASICs in Networking Equipment Markets,
total revenues reached over $1.2 billion in 1998. Performance
enhancement and system-on-chip design methodology drive market
growth, and ASICs provide a better price performance ratio than
standard components.
Some important technology trends occurring within the ASICs market
are the merging of standard cell and gate array designs and the adoption
of copper interconnect technology, silicon-on-insulator and silicon
germanium. In addition, gate counts, clock speeds and metal levels are
increasing while on-chip voltages are decreasing, according to Frost &
Sullivan Analyst Anupama Pokharna.
The competitive challenges with which ASICs vendors are most
concerned are new entrants who are lowering market shares of existing
players and shrinking gate array revenues, that are threatening the
existence of some companies. Consequently, participants are faced with
the challenge of selecting market segments carefully to avoid loss of
opportunity cost and to increase profit margin.
The ASICs market is characterized by highly competitive entrenched
companies. Good customer support and continuous research and
development spending are two important strategies the market leaders
are utilizing to gain share, says Pokharna.
This new research by Frost & Sullivan, World ASICs in Networking
Equipment Markets, is segmented according to device design
methodology. The two types of ASICs examined in this report are
standard cell and gate array. Provided in the study are revenue forecasts,
an examination of the major market drivers, restraints and technological
trends, competitive issues, and strategies. Also included are an analysis
of the major ASIC customers, and a detailed overview of the major
application markets, including switches, routers, NICs and hubs.
Frost & Sullivan presents Market Engineering awards to recognize
companies that have made a positive contribution to the ASICs in
networking equipment industry. Winners are selected from an in-depth
analysis of the market competitors and interviews with those companies
that make up the industry.
Frost & Sullivan extends its 1998 Market Engineering Product
Innovation Award to IBM Microelectronics, who is considered a
technology leader throughout the industry, pioneering in the design and
development of many new technologies. IBM Microelectronics is also
the recipient of the 1998 Market Engineering Customer Service Award,
for its reputation among customers for providing good customer
support, which is an especially important criteria in the ASIC business.
This semiconductor industry research has integrated the Market
Engineering consulting philosophy into the entire research process.
Critical phases of this research include: Identification of industry
challenges, market engineering measurements, strategic
recommendations, planning and market monitoring. All of the vital
elements of this system help market participants navigate successfully
through the ASICs market.
The companies participating in this market include: Chartered
Semiconductor Manufacturing Inc., IBM Corp., Microelectronics, Intel,
LSI Logic Corporation, Lucent Technologies, NEC, Taiwan
Semiconductor Manufacturing Company, Texas Instruments, Toshiba
America Electronic Components, United Microelectronics Corporation,
VLSI Technology, Related Companies: American Microsystems Inc.,
Atmel Corporation, Cadence Design Systems Inc., Epson Electronics
America Inc., Fujitsu Microelectronics Inc., Harris Semiconductor,
Hitachi America Ltd., Kawasaki LSI U.S.A. Inc., LG Semicon
Corporation Ltd., Mentor Graphics Corporation, Mitel Semiconductors
Inc., Mitsubishi Electronics America, Motorola Inc., Semiconductor
Product Group, Oki Semiconductor Inc., Samsung Semiconductor Inc.,
ST Microelectronics Inc., Synopsys Inc., Application Market
Participants: 3Com Corporation, Cisco Systems, Ericsson Business
Networks AB, NEC Electronics Inc., Nortel Networks.
Frost & Sullivan is an international marketing consulting and training
company that monitors the semiconductor industry for market trends,
market measurements and strategies. This ongoing research is utilized to
update a series of online research subscriptions such as the Electronic
Components and Semiconductors Custom Subscription, and to support
industry participants with customized consulting needs.
Visit the Frost & Sullivan Web site: frost.com
World ASICs in Networking Equipment Markets
Report: 5135-26 Publication Date: April 1999 Price: $3450 SOURCE
Frost & Sullivan
Copyright 1999, PR Newswire
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