A study from ABI Research predicts the market for femtocell semiconductors could top $1.8 billion 2013, from $72 million this year, growing at an annual compound growth rate of more than 300%.
The lucrative market is attracting more and more silicon vendors, including heavyweights Freescale Semiconductor and Qualcomm Inc., said ABI. But companies will have to pay dearly to have a chance to have a shot at the femtocell pot of gold, said the company.
“Although there’s no doubt about the significant potential of this market, it should be addressed with great wariness,” said Stuart Carlaw, VP and research director at ABI. “Semiconductor vendors will bear the brunt of huge pressures from price declines. In order to meet those price declines there is actually a paradoxical need to invest huge sums in designing optimized and dedicated silicon for the femtocell market.”
