Worldwide Telecom/Datacom Semiconductor 2008-2013 Forecast

This IDC study examines the wired physical layer and logical layer products shipping within the data networking, access, optical, voice, and mobile infrastructure markets. A top-line forecast is shown, segmented by major application market segment for 2007-2013. The global economy is under tremendous strain as the

"financial meltdown" of 2008 creates much uncertainty about the future of the overall semiconductor market. Suffice it to say, the telecom/datacom semiconductor market will come under pressure as service providers and businesses reevaluate their capital expenditures in the short term. Despite the economic conditions, IDC forecasts that the worldwide telecom/datacom semiconductor market, which includes semiconductors supporting T/E, SONET/SDH, ATM, communications processing, and network processing will grow at a CAGR of 3.2% to $2.7 billion by 2013. Carriers continue to replace legacy infrastructure that will support the continuously growing number and mix of traffic (voice, video, and data) that more users expect to access at any place at any time.

"Current economic conditions have undoubtedly affected the long-term growth for the telecom/datacom semiconductor market. Although carriers and businesses will continue to spend on networking equipment, their expenditure will slow down, specifically over the 2009-2010 period. During this time, semiconductor companies will need to reevaluate their product portfolios and go-to-market strategies to protect their business in the short term while the global economy recovers." - Aileen A. Arcilla, senior research analyst, Semiconductors: Networking, Broadband and Storage Systems