Strategic Analysis of the World Handset Radio Frequency (RF) Semiconductor Markets

SUMMARY

Persistent Demand for Compact Devices and Modular Solutions Challenges RF Suppliers to Deliver High-performing Cost-competitive Products

With the continuing demand for compact handsets with rich features at lower costs, radio frequency (RF) semiconductor manufacturers are facing a quandary. They are compelled to design, develop, and deliver high-performance devices that meet the requirements specified by handset manufacturers. They also have to keep pace with the shortened design cycles of handsets. Moreover, influenced by service providers desire for offering sophisticated services to consumers, OEMs are required to include the necessary hardware to support the various functionalities in their handsets. This has resulted in a transition toward modular RF solutions in place of discrete components, as the higher levels of integration helps in containing space and cost. To provide the desired solution, semiconductor suppliers need to adopt sophisticated technology and differentiate their products by incorporating additional functionalities. Simultaneously, they have to keep costs under control, as the market is highlycompetitive and the price-performance ratio can be a key differentiator.

This Frost & Sullivan strategic analysis provides an overview of the World handset RF semiconductor market. The market has been segmented into RF switch, filters (RF filters, IF filters, duplexers), power amplifier, and transceiver. It also discusses the market drivers and restraints as well as industry challenges, and provides recommendations to overcome them. The research enables companies to align their positioning strategies to benefit from the changing markets and obtain maximum return on investment.

Integration Drives Market Growth

Incremental integration is the buzzword in the handset RF semiconductor market with the demand for reduced form factor and additional features in a handset. Component manufacturers are under pressure to minimize the size of components and hence, the board space allotted for the RF section. "This calls for high levels of integration with the discretes and passives being progressively integrated into chips and multichip compact modules," says the analyst of this research. "This increasing drive toward integration results in modular or turn-key solutions and aids in strengthening the revenues for the RF-integrated circuits (ICs)."

Advances in process technologies and architectures drive such extensive integration. They enable handset RF semiconductor manufacturers to shrink their products dramatically even while including attractive applications and functionalities. Semiconductor suppliers have to provide highly integrated modular solutions with simplified designs at competitive prices. These solutions should also easily interface with existing and emerging baseband technologies to help suppliers capitalize on the immense market opportunities.

Multimode/Multiband Handsets Create Greater Opportunities for RF Semiconductors

"The swelling number of wireless standards coupled with the co-existence of many standards in any region necessitates multimode and multiband handsets that can cater to customers across different frequencies and bands," notes the analyst. "With the greater number of multimode/multiband handsets, there is a corresponding hike in the number of RF components that go into a handset." For example, additional filters have to be added in the front-end to serve multiple frequencies. It will ultimately increase the dollar value of RF semiconductors.

Multimode and multiband handsets are likely to witness very high uptake, especially with the commercial deployment of 3G and 3.5G phones leading to a new set of standards and the inevitable continuous evolution of wireless standards. The increase in multimode and multiband handsets is likely to consequently bring about a huge requirement for handset RF semiconductors and thus market participants could generate greater revenue and better opportunities for market expansion.

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Executive Summary
    • 1. Executive Summary
• 2. Wireless Subscribers & Mobile Handsets Market
  • 1. Mobile Handsets & Wireless Subscribers Market
    • 1. Mobile Handsets & Wireless Subscribers Market Forecasts
• 3. Handset RF Semiconductor Market
  • 1. Overview
    • 1. Overview & Definitions
    • 2. Handset Functional Block Diagram
    • 3. Market Engineering Measurements
    • 4. Market Drivers
    • 5. Market Restraints
    • 6. Industry Challenges
  • 2. Market Forecasts & Analysis
    • 1. Revenue Forecasts for Total RF Semiconductor Market
    • 2. Analysis by Product Segments
    • 3. Analysis by Standards
    • 4. Market & Technology Trends
    • 5. Market Opportunities
    • 6. Competitive Structure & Market Shares
  • 3. Frost & Sullivan Awards
    • 1. Overview
    • 2. Product Differentiation Leadership in the Handset RF Semiconductor Market
    • 3. Entrepreneurial Company in the Handset RF Semiconductor Market
• 4. RF Switch Market
  • 1. Overview
    • 1. Overview & Definitions
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Market Forecasts & Analysis
    • 1. Revenue Forecasts for Total RF Switch Market
    • 2. Analysis by Standards
    • 3. Market Trends & Opportunities
    • 4. Pricing Trends
    • 5. Competitive Structure & Market Shares
• 5. Filter Market
  • 1. Overview
    • 1. Definitions and Market Overview
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Market Forecasts & Analysis
    • 1. Revenue Forecasts for Total Filters Market
    • 2. Analysis by Standards
    • 3. Analysis by Filter Types
    • 4. Market Trends & Opportunities
    • 5. Pricing Trends
    • 6. Competitive Structure & Market Shares
• 6. Power Amplifier Market
  • 1. Overview
    • 1. Market Overview & Definitions
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Market Forecasts & Analysis
    • 1. Revenue Forecasts for the Total Power Amplifier Market
    • 2. Analysis by Standards
    • 3. Market Trends & Opportunities
    • 4. Pricing Trends
    • 5. Competitive Structure & Market Shares
• 7. RF Transceiver Market
  • 1. Overview
    • 1. Market Overview & Definitions
    • 2. Market Engineering Measurements
    • 3. Market Drivers
    • 4. Market Restraints
  • 2. Market Forecasts & Analysis
    • 1. Revenue Forecasts for the Total RF Transceiver Market
    • 2. Analysis by Standards
    • 3. Market Trends & Opportunities
    • 4. Pricing Trends
    • 5. Competitive Structure & Market Shares
• 8. Appendix
  • 1. Supporting Data - DSD Tables
    • 1. Mobile Penetration
    • 2. US Mobile Subscribers and Penetration
    • 3. Mobile Communication Revenue
    • 4. Telecommunication Service Spending
  • 2. Abbreviations
    • 1. List of Abbreviations

List Of Figures

Chapter 3

• Handset RF Semiconductor Market: Market Drivers Ranked in Order of Impact (World), 2005-2008
• Handset RF Semiconductor Market: Market Restraints Ranked in Order of Impact (World), 2005-2008
• Handset RF Semiconductor Market: Impact of Major Industry Challenges (World), 2005-2008
• Handset RF Semiconductor Market: Unit Shipments and Revenue Forecasts (World), 2002-2008
• Handset RF Semiconductor Market: Revenue Forecasts Broken Down by Device Type (World), 2002-2008
• Handset RF Semiconductor Market: Percent of Revenues Broken Down by Device Type (World), 2002-2008
• Handset RF Semiconductor Market: Revenue Forecasts Broken Down by Standards (World), 2002-2008
• Handset RF Semiconductor Market: Percent of Market Revenues Broken Down by Standards (World), 2002-2008
• Handset RF Semiconductor Market: Major Competitors in Different Product Segments (World), 2002-2008
• Handset RF Semiconductor Market: Competitive Structure (World), 2002-2008
• Handset RF Semiconductor Market: Market Shares of Major Competitors (World), 2002-2008

Chapter 4

• Handset RF Switch Market: Market Drivers Ranked in Order of Impact (World), 2005-2008
• Handset RF Switch Market: Market Restraints Ranked in Order of Impact (World), 2005-2008
• Handset RF Switch Market: Unit Shipments and Revenue Forecasts (World), 2002-2008
• Handset RF Switch Market: Revenue Forecasts Broken Down by Standards (World), 2002-2008
• Handset RF Switch Market: Percent of Revenues Broken Down by Standards (World), 2002-2008
• Handset RF Switch Market: Weighted Average Unit Price by Switch Type (World), 2002-2008
• Handset RF Switch Market: Competitive Structure (World), 2002-2008
• Handset RF Switch Market: Market Shares of Major Competitors (World), 2002-2008

Chapter 5

• Handset Filter Market: Market Drivers Ranked in Order of Impact (World), 2005-2008
• Handset Filter Market: Market Restraints Ranked in Order of Impact (World), 2005-2008
• Handset Filter Market: Unit Shipments and Revenue Forecasts (World), 2002-2008
• Handset Filter Market: Revenue Forecasts Broken Down by Standards (World), 2002-2008
• Handset Filter Market: Percent of Revenues Broken Down by Standards (World), 2002-2008
• Handset Filter Market: Revenue Forecasts by Filter Type (World), 2002-2008
• Handset Filter Market: Percentage of Market Revenues by Filter Type (World), 2002-2008
• Handset Filter Market: Weighted Average Unit Price Trend (World), 2002-2008
• Handset Filter Market: Competitive Structure (World), 2002-2008
• Handset Filter Market: Market Shares of Major Competitors (World), 2002-2008

Chapter 6

• Handset Power Amplifier Market: Market Drivers Ranked in Order of Impact (World), 2005-2008
• Handset Power Amplifier Market: Market Restraints Ranked in Order of Impact (World), 2005-2008
• Handset Power Amplifier Market : Unit Shipments and Revenue Forecasts (World), 2002-2008
• Handset Power Amplifier Market : Revenue Forecasts Broken Down by Standards (World), 2002-2008
• Handset Power Amplifier Market: Percentage of Revenues Broken Down by Standards (World), 2002-2008
• Handset Power Amplifier Market : Weighted Average Unit Price Trend (World), 2002-2008
• Handset Power Amplifier Market: Competitive Structure (World), 2002-2008
• Handset Power Amplifier Market: Market Shares of Major Competitors (World), 2002-2008

Chapter 7

• Handset Transceiver Market: Market Drivers Ranked in Order of Impact (World), 2005-2008
• Handset Transceiver Market: Market Restraints Ranked in Order of Impact (World), 2005-2008
• Handset Transceiver Market: Unit Shipments and Revenue Forecasts (World), 2002-2008
• Handset Transceiver Market: Revenue Forecasts Broken Down by Standards (World), 2002-2008
• Handset Transceiver Market: Percent of Revenues Broken Down by Standards (World), 2002-2008
• Handset Transceiver Market: Weighted Average Unit Price Trend (World), 2002-2008
• Handset Transceiver Market: Competitive Structure (World), 2002-2008
• Handset Transceiver Market: Market Shares of Major Competitors (World), 2002-2008