Handset semiconductor revenue is expected to increase by 4% in 2010, compared to continuous decrease in the previous four quarters, and is expected to grow through the next five years, according to the new report from ABI Research.
The report further said that the increase will be driven by the current resurgence of the mobile handset market, while the connectivity chips will be key drivers of handset semiconductor market growth in the next five years.
The company said that the major semiconductor components such as baseband processors and application processors, accountingfor more than 60% of the revenue in this segment, are expected to show revenue increase of 3% to 8%, respectively, in 2010.
As well as the baseband processor, the application processor is another important component enabling mobile devices to deliver better performance, more reliable connectivity and longer battery life; today’s chipsets are becoming ever more compact and competitive.
Celia Bo, industry analyst at ABI Research, said: "Bluetooth has the highest attach rate with the average penetration rate is expected to be 57% in 2010.
"The penetration rate of GPS is expected to double between 2010 and 2015. Wi-Fi chips will deliver the highest revenue of the three connectivity chips over the next five years."
