MOUNTAIN VIEW, Calif.-According to a report just released by Strategies Unlimited, a Silicon Valley market research firm, the worldwide market for Radio Frequency semiconductor devices in cellular telephones will grow from $3.9 billion in 1999, to $7.7 billion in 2004.
The report, RF Semiconductors for Cellular/PCS Handsets, Market Review and Forecast 2000, examines the semiconductor technology and trends behind the evolution to third-generation cellular chipsets.
The report forecasts annual handset demand will grow from 240 million units in 1999 to 600 million units in 2004 with cellular and personal communications services subscribers reaching 1.3 billion.
The report also shows Global System for Mobile communications handsets are the largest market for RF semiconductors with shipments of $2 billion in 1999. Code Division Multiple Access, IS-136 Time Division Multiple Access, Personal Digital Cellular and analog chipsets accounted for $1.9 billion.
With power amplifiers and RF control chips showing strong growth over 1998 levels, small signal amplifiers, frequency conversion devices and Intermediate Frequency chipsets represented the largest share of the total market by chip type.
The report also predicts an increase in the integration of RF and IF circuits during the next five years that will reduce the number of chips per handset.
Beginning in 2000, Bluetooth data links and global positioning system receivers for location-based services are expected to appear, leading to a $500 million chip market by 2004.
