Semiconductor Revenues To Double for Networking Switches, According to IDC

Business Wire, Nov 20, 1996

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 20, 1996--Worldwide revenues from semiconductors in LAN switches will be up 98.3%, reaching $160.2 million by year end 1996, according to International Data Corporation (IDC).

Increasing switch sales, which are expected to triple, are a key driver in spite of the forecasted 34.3% decline in average semiconductor content per switch.

These numbers are part of a new report, "Worldwide LAN Equipment Semiconductor Market Review and Forecast," now available from IDC's Semiconductor Market Planning Service.

Semiconductors in LAN equipment overall will reach $1.36 billion, up 13.3% for the year. Although LAN equipment is a relatively small market for semiconductors, its growth is substantial when compared to IDC's forecasted 6% drop in revenues for the semiconductor industry as a whole.

According to the report, the value of semiconductors in LAN hubs will reach $701.2 million by year end 1996, down slightly from $704.9 million in 1995. The small decrease is a result of continuing integration of functions and declining chip prices rather than slowing systems sales. IDC projects system sales growth of 24.5% for 1996, while silicon content of the average hub drops 20.1%.

Revenues by semiconductor component type in LAN equipment is shifting. Logic application specific integrated circuits (ASICs) revenues will heat up as communications functions are integrated into logic ASICs, boosting revenues 52% over 1995 revenues, and driving past expected year end microperipheral revenues of $419.3.

IDC's report quantifies worldwide semiconductor content by semiconductor device type at the bill-of-materials level. Units, revenues and average selling prices are projected on a quarterly basis for semiconductor components in switches, hubs, network interface cards, and routers through 1996. Annual data are presented through the year 2000.

To obtain more details about this report contact John Ishimaru at IDC's research facility in Mountain View, Calif. (415/962-6438).

Headquartered in Framingham, Mass., International Data Corporation provides IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 300 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.

IDC's World Wide Web site (http://www.idcresearch.com) contains additional company information and recent news releases, and offers full-text searching of recent research.

IDC/LINK, an IDC subsidiary, researches and analyzes the home computing market, leading-edge technologies in telecommunications and new media, and the convergence of computing and consumer electronics. IDC is owned by International Data Group (IDG), the world's leading IT media and research company.

CONTACT: International Data Corporation

John Ishimaru, 415/962-6438

Kelly Henry, 508/935-4474

or

Oak Ridge Public Relations

Frankie Borison, 408/253-5042