Power chip market will grow

Allied Business Intelligence Inc., a market research group in Oyster Bay, N.Y., recently released a report forecasting 19% annual growth through 2003 for power semiconductors, integrated circuit chipsets and power modules.

In the report, "Wireless Power Devices, Transistors, ICs and Power Modules: Strategies, Technologies and Trends," the firm also estimates the market will be worth $2.8 billion by 2003. Much of that growth will be driven by cellular and PCS network investments in gallium arsenide power amplifier ICs, a market segment that will average an annual growth of 26% during the next four years.Wireless trends also will serve to shake up portions of the market. Gallium arsenide transistors have been pummeled out of loftier market position by other types of transistors and ICs for wireless base stations and handsets. However, investment in LMDS networks, broadband satellite projects, point-to-point millimeter wave radio and other high-frequency applications will account for at least 5% annual growth in gallium arsenide transistors.

Also, increasing interest in power modules, as opposed to power amplifier ICs, among manufacturers of wireless handsets may cause concern through the ranks of amplifier IC makers, according to Andy Fuertes, senior analyst with ABI. Handset producers' decreasing knowledge of amplifier ICs, coupled with shorter design schedules, are prompting the market shift. Power modules offer easy installation at low cost.

ABI is a technology research think-tank that publishes reports on the broadband, wireless and electronics industries. Details of the study can be found at www.alliedworld.com.