Combination IC Shipments Aim High, Thanks to Wi-Fi
Date: 15 August 2011

Wireless combination IC shipments are forecast to grow by almost 24% in 2011, according to IMS Research’s latest report The World Market for Wireless Combination ICs - 2011.

The vast majority of the growth is due to just two applications, smartphones and tablet PCs; and one particular combination IC, Bluetooth/FM/WLAN.

Historically, the vast majority of combination ICs shipped has featured Bluetooth and FM technologies, with this specific combination being incredibly successful in cellular handsets. However, with the rapid growth of the smartphone sector in recent years, thanks largely to Apple’s iPhone and handsets using Google’s Android OS, inclusion of Wi-Fi technology has become almost essential. This is evidenced by the WLAN attach rate in smartphones rocketing from 56% in 2009, to a projected 93% in 2011.

“The success of the smartphone and tablet PC sectors is really pushing forward the market for combination ICs, which are now found in a wide range of consumer devices, from the Motorola Atrix to the Apple iPad2, and Sony PS3,” commented Heath Lockett, Connectivity market analyst at IMS Research. “The number of devices shipping with a Bluetooth/FM/WLAN combination is forecast to increase by 62% in 2011, and by 2012 Bluetooth/FM/WLAN ICs will overtake shipments of Bluetooth/FM chips, highlighting just how important a part of our lives Wi-Fi has become.”

The continued growth of IC shipments will see total combination IC revenues rise from $2.5 billion in 2010 to almost $7 billion in 2016; an aggregate growth rate of 18%.

As the combination IC market has matured, price and product size has reduced, while an increasing array of wireless technologies is now offered. “Short of any future mass integration of Bluetooth or WLAN into the baseband, combination ICs are here to stay”, says Lockett. “With Blackberry’s Playbook now being the first consumer electronics device to use a Bluetooth/FM/WLAN/GPS combination, the technology is really moving on. The next step will be to squeeze NFC on board as well.”

Editors Note :

For more information, please contact: Susan Revin, Press Manager IMS Research Tel: +44 1933 402255 Susan.Revin@imsresearch.com Heath Lockett Market Analyst Tel: +44 1933 402255 Heath.Lockett@imsresearch.com

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is the leading independent provider of market research and consultancy to the global electronics industry. The company’s headquarters is in the UK, with offices in the US, China, Japan, South Korea and Taiwan. IMS Research regularly publishes detailed research on the connectivity markets, among others.

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