While FE and GE Semiconductor Players are Established, Opportunities for Generating 10GE Revenue are Still up for Grabs, IDC Reveals

FRAMINGHAM, MA – July 14, 2008 – The lion's share of the worldwide Ethernet market revenue continues to be generated by vendors well established in the fast Ethernet (FE) and gigabit Ethernet (GE) semiconductor segments, including Broadcom, Marvell, Realtek, and Intel. However, IDC observed that the marketplace has begun to adopt 10 gigabit Ethernet (10GE) and that both startups and well-known public vendors earned notable 10GE revenues in 2007.

"The worldwide Ethernet semiconductor market remained flat in 2007 compared to 2006, but 10GE sales are clearly ramping," said Aileen Arcilla, senior analyst for Semiconductors at IDC. "What is interesting to note is the number of startups that are currently playing in this space, with some actually surpassing sales of 10GE chips compared with established companies. However, since we are still in the early adoption phase, it remains to be seen who will clearly be the 10GE semiconductor market leader."

Additionally, IDC believes ample opportunity remains in the FE and GE segments as customers continue to deploy these interfaces in their networks, and as both FE and GE ports are finding new life among small and medium-sized businesses.

IDC's study, Worldwide Ethernet Semiconductor 2007 Vendor Shares: Bigger Universe of Companies Showcases 10GE Potential (Doc #212759), reports on the 2007 market share of the Ethernet semiconductor market. For the first time, the report offers two new sections: A breakdown of Ethernet semiconductor market share by speed – FE, GE and 10GE; and, highlights of both public companies and startups that are playing in the 10GE space. Vendors briefly profiled in the report include AMCC, Aquantia, Broadcom, Cortina Systems, EZChip, Fujitsu Microelectronics, Fulcrum Microsystems, Intel, Lightstorm Networks, Marvell, Netlogic (Aleuros), Neterion, Vitesse, Solarflare, Teranetics, T-PACK, and Xelerated.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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