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NOVEMBER 23, 2005 BULLETIN

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Erosion in Consumer Segment Flattens DSP Sales in 2005

Total DSP market growth will resume and accelerate starting in 2006

A 36 percent decline in digital signal processor revenues in consumer systems applications this year will result in a flat DSP market overall during 2005, based on the latest projections by IC Insights.

Consumer applications will represent about 4 percent of the total $7.8 billion DSP market in 2005 (see Figure 1), down from a 7 percent share in 2004 primarily due to falling average selling prices in home and entertainment products.  Overall, DSP unit shipments are expected to slip 2 percent to about 1.3 billion in 2005, the IC Insights forecast shows.

Communications systems will account for more than 80 percent of DSP sales in 2005 at $6.4 billion, an increase of more than 4 percent compared to $6.1 billion in 2004.  The automotive DSP segment is now forecast to increase 6 percent to $312 million in 2005, from $294 million in the prior year.  The automotive segment represents just 4 percent of the total DSP market, according to IC Insights.

Figure 1

In 2006, revenue growth will return to the total DSP market, with worldwide sales rising 9 percent to $8.5 billion followed by an 18 percent increase in 2007 and a 27 percent surge in 2008, based on IC Insights’ industry outlook.

The 2006 edition of IC Insights’ Integrated Circuit Market Drivers (formerly known as the Emerging IC Markets report) will be available in late November.  The report provides a study of emerging and major end-use applications fueling demand for ICs in the second half of this decade.  Packed with numerous tables providing 10,000 market data points, the IC Market Drivers report will be available in both a three-ring binder and on CD-ROM, costing $2,485 for the first bundled set.  Additional individual copies of the disk or binder will sell for $495 each.  A single CD-ROM or binder copy will be available for $1,990 each.  The report is also available under a multi-user corporate license for $5,290.

About IC Insights

IC Insights, Inc., based in Scottsdale, Arizona, is dedicated to providing high-quality, cost-effective market research for the integrated circuit industry. Founded in 1997, IC Insights offers coverage of global economic trends, IC market forecasts, capital spending and fab capacity trends, product market details, and technology trends, as well as complete IC company profiles and evaluations of end-use applications driving demand for ICs.

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