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Microprocessor revenues reached $96B

Posted: 03 Mar 2009     Print Version  Bookmark and Share

Keywords:microprocessors  8-bit MCUs  32-bit solutions  microprocessor-based revenues 

The world market for microprocessors reached over Rs.4.77 lakh crore ($96 billion) in 2008; on track to hit a record Rs.4.97 lakh crore ($100 billion) this year before the economy started its current contraction. IMS Research doesn't forecast microprocessor-based revenues to exceed the Rs.4.97 lakh crore ($100 billion) milestone until 2011.

General purpose components, consisting of MCUs and MPUs, will likely see a slight contraction in revenues, mostly due to inventory levels depressing overall ASPs.

"Recently-introduced high-performance, low-power 8-bit MCUs will likely help support this component category over the next few years, allowing designers more of a choice when addressing the needs of higher processing power with lower battery drain. I expect that these new 8-bit devices will overlap with 32-bit devices in some design evaluations, squeezing out 16-bit solutions in preference to the low power 8-bit or high performance well supported ecosystem of 32-bit solutions," commented Paul Sundberg, analyst.

Worldwide Comprehensive Microprocessing Market

Worldwide Comprehensive Microprocessing Market (Click to view full image)

The special purpose component category, largely comprising Signal Processors, CPUs & GPUs, is expected to be the most impacted during the recession as companies battle for market share, in the face of rising inventories and cost-cutting redesign efforts, says IMS.

Core-based components are expected to do better over the next 18 months as products such as the popular game consoles enter their next design phase to cut costs.

One recognised trend as a design stabilises is to reduce cost by lowering silicon count, replacing a discrete CPU and its peripheral support chips with an all-in-one chip, driving utilisation of core-based logic. The resulting integration is driving down the final bill of materials with core-based ASIC, ASSP and FPGA designers surviving at the expense of the discrete processor and discrete component vendors.

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