DSL Semiconductor Market Showing Signs of Decline in 2003, According to IDC
MOUNTAIN VIEW, CA – JULY 24, 2003 – According to a new report from IDC, the DSL semiconductor market is expected to decline 21% to $878 million in 2003. This decline is the result of slowing equipment sales coupled with cost reductions achieved due to the integration of the communications processor and DSP transceiver into CPE designs. IDC expects the market to rebound in 2004 and 2005, before tapering off again. Between 2002 and 2007, IDC expects the DSL semiconductor market to decline at an annualized rate of -5%.
The DSL subscriber rate varies by region. By 2007, the rest of the world category will show a healthy compound annual
growth (CAGR) rate of 13% whereas Japan will show a –43% CAGR for the same period. "Although growth in emerging
markets and equipment replacement will help prop up the DSL semiconductor market, continued price erosion and
market saturation in key regions of the world will limit the opportunity for DSL chip vendors going forward," said Ken
Furer, Research Analyst IDC. "China, Latin America, and India are areas where IDC sees potential for growth."
The study, Worldwide DSL Semiconductor Forecast and Analysis, 2002-2007 (IDC#29741), examines all semiconductor
products going into DSL CPE and CO infrastructure markets. For DSL CPE, IDC includes standalone modems, residential gateways, and routers, while for the CO side, IDC includes DSL components going into Digital Subscriber Line Access Multiplexer (DSLAM) and Digital Loop Carrier (DLC) line cards.
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