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Chip market to remain flat through 2008

OYSTER BAY, N.Y.-The overall market for GaAs and silicon-based power semiconductors will remain relatively flat during the next five years, hovering around the $2 billion mark, according to market research firm ABI.

ABI expects the market to rise at just 2 percent per year for the next five years, mainly due to its dependence on the cellular industry. According to ABI, the cellular industry currently holds 64-percent market share in the semiconductor industry. Looking forward further, however, ABI expects the cellular industry’s share of the overall semiconductor market to diminish.

“By 2008, cellular handsets and infrastructure will represent about 50 percent of the broader market for RF power devices,” explained Edward Rerisi, ABI’s director of research. “Niche applications-including Wi-Fi, satellite and military applications-will help buoy the overall market as the cellular segment decreases. However, their combined impact will not boost the market sufficiently enough to re-establish robust industry growth.”

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