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MARCH 6, 2003 RELEASE

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802.11 Chipset Shipments Forecast to Increase 80% in 2003

Emerging IC Markets 2003 Report Covers the Burgeoning Wireless Network Market

Scottsdale, Arizona — March 6, 2003 — The popularity of 802.11-enabled wireless network systems is growing rapidly. In fact, in the latest edition of Emerging IC Markets, IC Insights forecasts that shipments of 802.11 chipsets (including all 11x variants) will grow 80% in 2003 to reach 35 million units. Moreover, from 2002 to 2006 the average annual shipment growth rate for 802.11 products is expected to be 50%.

Standardization efforts and steep reductions in equipment costs due to greater competition, advanced design integration, and volume manufacturing efficiencies have spurred the widespread deployment of wireless networks. There are still some issues with interoperability that must be worked out, but the great market potential for wireless networking is attracting much attention from both systems and IC suppliers. It is IC Insights’ belief that wireless networking will become a standard capability in many electronic systems (e.g., laptop and desktop PCs, PDAs, residential gateways, etc.) in the same way that Ethernet wired connectivity and modems have.

As of late 2002 there were more than 50 known suppliers of ICs for 802.11 wireless network applications. Although IC Insights believes that the wireless network market has room for many IC suppliers, there seems to be an excessive number of companies jumping into the fray. Given that, there is bound to be some consolidation among companies and some that succumb to competitive pressures. Examples from 2002 include RF Micro Devices buying 802.11 chip supplier Resonext Communications, and Titan closing its LinCom Wireless 802.11 operation.

More details on the 802.11 wireless network system and IC markets as well as coverage of personal area network technologies like Bluetooth can be found in Emerging IC Markets 2003.

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 emerging markets for ICs.

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