Frost report urges RFIC makers to get scalable
Increasing deployment of multimode and multiband wireless handsets developed for the latest wireless communications standards is set to bring about a huge requirement for RF semiconductors.
That's according to the analyst company Frost & Sullivan, which has just issued a new report on the RF semiconductor market in handsets. It says that the value of the sector is set to grow from $5.34 billion in 2004 to reach $8.27 billion in 2008.
Frost's figures include all RF semiconductors used in handsets, whether GaAs- or silicon-based, specifically referring to RF switches, filters and duplexers, power amplifiers and transceivers.
"The swelling number of wireless standards, coupled with the co-existence of many standards in any region, necessitates multimode and multiband handsets, [for which] there is a corresponding hike in the number of RF components that go into a handset," said Frost analyst Deepa Doraiswamy.
"Additional filters have to be added in the front-end to serve multiple frequencies. It will ultimately increase the dollar value of RF semiconductors."
Device integration and scalability are two key aspects that RFIC manufacturers must concentrate on, the report urges.
"RF semiconductor companies will have to design devices that improve overall performance of the RF section in handsets and support the creation of single-chip radios and the integration of RF and baseband," added Doraiswamy.
The analyst adds that many companies have begun heavy investment in developing the process technologies required to cope with the increasing pace at which handset designs evolve.
"The design cycles of handsets could shrink further. RF semiconductor manufacturers need to develop scalable solutions with advanced power control features and interfaces to varied functionality."
Doraiswamy adds that with the filter and switch markets almost saturated, it is the power amplifier and RF transceiver applications that offer more scope for technologically-innovative start-up companies.
"An emerging company with a groundbreaking technology can make significant inroads into these markets, provided the gestation period for its technology is short."
Frost & Sullivan s Strategic Analysis of World Handset RF Semiconductor Markets is avaliable via the company s web site.
