Market changes in DSP silicon warrants new analysis

TEMPE, ARIZONA: Forward Concepts, the premier market research firm tracking silicon for digital signal processing (DSP), has published a new in-depth market study guiding clients through the market changes that have recently occurred, providing guidance as to where the worldwide market for DSP-centric silicon is the fastest growing.

“DSP Silicon Strategies ‘09” is the most comprehensive market report on DSP silicon, and the author considers DSP as the driving technology for the entire semiconductor industry.

Will Strauss, President of Forward Concepts and the author of the report, points out that DSP technology is required for all digital wireless -- from basic personal navigation devices (PNDs) to advanced 4G cellular, and all digital multimedia, from lowly MP3 players to rich-content personal media players and HDTV receivers.

Strauss said: “Many components that were once reported as “DSP chips” are no longer. Rather, they are reported as systems on chip (SoC) in categories like ASICs or ASSPs, even by traditional DSP chip vendors like Texas Instruments and Analog Devices.”

The report points out that off-the-shelf or “discrete DSP chips” are only a small part of the DSP silicon universe. Specifically, discrete DSP chips now constitute only 11 percent of the $27 billion 2008 worldwide market for DSP silicon.

The report readily acknowledges that 2009 will be a “down” year for most DSP silicon market segments, but long-range, the report points out that DSP is the technology that is driving the entire semiconductor market.

Strauss added: "Because of the drop in DSP shipments this year, five-year CAGR figures can be misleading, so we really should eye the market growth from the depths of 2009, rather than from 2008.”

He cites, for example, the worldwide DSP silicon market is forecast to grow at a 9.4 percent rate over the next five years -- from 2008 through 2013 to the $43 billion level. However, measuring from 2009, the four-year growth rate is forecast at a more respectable 12.1 percent CAGR. Of course, some segments, like wireless and consumer electronics will grow at a much higher rate.

The report is said to be the only market study providing worldwide electronic equipment production forecasts (by region and by application market) and both IC and DSP content for each year from 2008 through 2013.

The in-depth 230-page study profiles the DSP market stance of 46 companies and includes 87 Figures, 51 Tables, plus extensive Appendix of Abbreviations & Acronyms for DSP, Communications & Multimedia.