As VoIP Enters Next Phase, Worldwide Potential for Semiconductors Providers Will Reach $2.4 Billion by 2009, IDC Predicts.

FRAMINGHAM, Mass. -- As VoIP is about to shed its early image and kick off a new phase in the market's evolution, IDC forecasts the worldwide VoIP semiconductor market to grow over $2.4 billion in 2009, with a compound annual growth rate of 38.9% for 2004-2009. However, both opportunities and threats are emerging for current semiconductors selling into VoIP systems.

"With basic product line ups complete, VoIP equipment vendors must look for opportunities to differentiate their offering and deliver tailored solutions," said Ian Eigenbrod, senior research analyst with IDC's Semiconductor program. "This need is creating new design-in opportunities and is ushering in the next phase of the VoIP semiconductor market evolution and it will be key to establishing market leadership long term."

Among key findings of IDC's study are the following:

--The Carrier segment (media gateways and softswitches) and the consumer segment (broadband gateways) will account for the bulk of the dollar shipments in 2009.

--An emerging battle over the optimal architecture at the component level threatens to disrupt the dominance of DSPs in the voice signal path.

--VoIP functionality will be embedded in communication systems, as voice becomes another application in the network.

This IDC study, Worldwide VoIP Semiconductor 2005-2009 Market Forecast and Analysis (IDC #34645) examines voice processing-specific semiconductors within the VoIP end markets. This includes digital signal processors (DSPs), ASSP/ASICs, PLDs and related analog components (SLICs and SLACs) that are responsible for the termination and conversion of traditional POTS voice traffic into IP packets, and vice versa. A top-line forecast for these semiconductors used within VoIP systems is provided by key end markets (carrier, enterprise and consumer segments) for 2004-2009.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email [e-mail].

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.