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April 7, 2011

Global Media tablet and eReader semiconductors revenue grew 2,000% in 2010

IDC forecast for year-over-year 2011 growth is 120%

By CBR Staff Writer

Global Media Tablet and eReader semiconductors revenue grew over 2,000% to $3.3bn in 2010 as semiconductor suppliers enabled original equipment manufacturers (OEMs) to bring new products to market less than 8 months after the iPad launched, according to a report by IDC.

With the arrival of Android Honeycomb, dual core processors, and increased bandwidth, IDC expects Media Tablet and eReader semiconductor revenues to grow by 120% year over year in 2011.

The study found that at 99% share of APU shipments, the ARM processor architecture dominated the market in 2010 and is expected to lose only a few points in 2011 as the MIPs and x86 architectures struggle for a role in the market.

Media Tablets and eReaders are two devices that share components but whose bills of materials (BOM) are optimised for very different functions and in 2010 average Tablet semiconductor BOM was nearly one and one half times as much as the BOM for eReaders.

Storage and memory ICs accounted for 40% of the semiconductor revenue opportunity in 2010, but falling prices for Flash and DRAM will drive system BOM cost reductions through 2015, leading these components’ share of semiconductor costs to fall nearly in half over the forecast period.

IDC consumer semiconductor research manager Michael Palma said the opportunity for semiconductors in Media Tablets and eReaders has exploded and semiconductor suppliers are scrambling to bring to market semiconductor and software platforms to enable these products.

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"Beyond semiconductors, these suppliers are also providing OEMs with much of the system software as well as support for access into app stores, which is helping to dramatically shorten product design cycles," Palma said.

According to the report, Media Tablets will drive the semiconductor revenue opportunity to a five year compound annual growth rate (CAGR) of 31%.

"For the next several years, we will see rapid innovation cycles for products launched into the marketplace and semiconductor suppliers will continue to satisfy evolving end user requirements over the coming years."

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