Significant Growth in Small Form Factor and Mobile PC Hard Disk Drives to Boost Worldwide HDD Semiconductor Market, IDC Predicts

FRAMINGHAM, MA – NOVEMBER 29, 2005 – Significant growth in the small form factor and mobile PC hard disk drive (HDD) segments will more than counterbalance flat growth in the desktop PC and enterprise HDD segments to accelerate worldwide semiconductor revenue growth through 2009, IDC forecasts. While the worldwide HDD semiconductor market will grow at a compound annual growth rate (CAGR) of 9.6% from 2004 to 2009, chip revenue in the small form factor HDD will experience the healthiest growth rate with a 39.4% CAGR over the same period. IDC expects, small form factor HDD chip revenue will represent nearly a quarter of the market by 2009.

"It is critical for HDD semiconductor suppliers to become mindful of end demand as volatile consumer markets grow to drive more and more HDD unit shipments," said Shane Rau, program manager, PC and Storage Semiconductors. "Consumer markets are also perilous for the growing conflict they represent between HDD storage and NAND flash memory storage."

Among the major technology trends discussed in IDC's latest forecast are the following:

— System-in-Chip (SoC) will be increasingly adopted across all form factors

— Perpendicular recording technology will take hold over the forecast period

— NAND flash memory's adoption in portable devices will force small form factor drives to move into devices that require higher storage capacity than NAND can support economically

IDC's new report, Worldwide Hard Disk Drive Semiconductor 2005-2009 Forecast (IDC #34295) examines the worldwide HDD semiconductor market and opportunities by semiconductor type for the following HDD segments: enterprise, desktop, mobile and small form factor. The study also covers significant technology trends and provides recommendations to HDD component suppliers.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

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