Click on the advert above to visit the company web site

Product category: Recruitment, Reports and Resources
News Release from: Frost and Sullivan
Edited by the Electronicstalk Editorial Team on 18 March 2004

Handset makers pressurise semiconductor
vendors

Request your FREE weekly copy of the Electronicstalk email newsletter. News about Recruitment, Reports and Resources and more every issue. Click here for details.

A new report claims that RF and baseband semiconductor manufacturers face difficult times as they confront growing pressure from handset manufacturers.

RF and baseband semiconductor manufacturers face difficult times as they confront growing pressure from handset manufacturers to design and deliver within short time frames highly efficient, yet competitively priced devices On the one hand, semiconductor manufacturers have to enhance their products with additional capabilities while ensuring that they meet the cost and specification requirements of handset vendors

On the other hand, they have to deliver these products faster to keep pace with the shortened design cycles of handsets.

Fabless companies are not quite as affected by these challenges, as they do not have their own manufacturing units and focus almost exclusively on the design aspect, which is their core competence.

However, companies that run their own production units will have to concentrate on streamlining their development processes.

"Ultimately, vendors need to adopt innovative strategies and efficient methodologies to design devices that enhance the talk time, the power characteristics, and the overall performance of both the RF and baseband segments while maintaining a check on the costs", remarks Frost and Sullivan Research Analyst Ramanan Rajagopalan.

Manufacturers are attempting to maximise their technological expertise to meet such rigorous requirements as well as position themselves in the market.

This is driving them to adopt the appropriate process technologies and design mechanisms.

In fact, technological advancements lie at the heart of wireless handset semiconductor market.

Over the years, a stream of new technologies has helped revolutionise this market by initiating changes such as the progression from discrete to integrated devices to modular solutions and improvements in process technology.

Currently, RF semiconductor designers are working to upgrade their products with greater levels of integration in the front end.

In the baseband part of the handset, integration is taking place at application level, with baseband designers attempting to build processors and power management integrated circuits (ICs) that offer superior performance.

Many of the leading RF and baseband solution providers are working towards the creation of a single radio-on-chip solution that shall ultimately lead to the integration of RF and baseband on a single chip.

"Semiconductor suppliers must aim at providing highly integrated modular solutions with simplified designs and at agreeable prices", says Rajagopalan.

This growing trend toward integration is in keeping with rising customer demand for added features and reduced form factor in handsets.

Integration in semiconductors is crucial for handset manufacturers to satisfy customer demand for unbelievably small phones equipped with attractive applications and functionalities.

With customers continuing to seek handsets with new features, the European market is predominantly turning into a replacement market.

While the constant demand for added features helps drive the usage of semiconductors in handsets, it could simultaneously pose a challenge to semiconductor suppliers to manufacture products that have a competitive edge in terms of performance rather than features.

Notwithstanding these challenges, the market for wireless handset semiconductors looks promising.

Market revenues touched $6.03 billion in 2003 and are projected to reach $15.26 billion in 2010.

Furthermore, the evolution of handsets from single mode to multimode, multiband devices, and the constant incorporation of value-adding functionalities such as global positioning system (GPS) and Bluetooth stimulate demand for high-performing semiconductor devices that use efficient process technologies.

As cellular standards transition from 2G to 3G - and even to 4G in the near future - semiconductor device manufacturers are forced to develop innovative baseband solutions that are also reasonably priced.

This has greatly benefited handset manufacturers by bringing about improvements in terms of form factor shrink, power characteristics and signal processing capabilities.

"The future of the handset RF and baseband semiconductor market in Europe appears bright and robust.

The rapid technological advancements shall result in the design and development of high-performing, cost-effective products that meet and exceed the demands set forth by handset manufacturers", concludes Rajagopalan.

Frost and Sullivan: contact details and other news
Email this article to a colleague
Register for the free Electronicstalk email newsletter
Electronicstalk Home Page

Search the Pro-Talk network of sites