Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand by GBIResearch

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									   Smartphone Integrated Circuits (IC) Market to 2020 - Greater
   Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and
                   GPS will Increase Demand
 Reference Code: GBISC0014MR                                                                                      Publication Date: May 2011


                                      Growth in the Demand for Smartphones is Expected to Drive IC sales
Smartphone shipments                  The demand for smartphones has been growing at a very high rate. According to GBI Research,
increased to around 301.8             the overall year on year growth rate of the smartphone market in 2010 was 72%. Smartphone
million in the year 2010,             shipments increased to around 301.8 million in the year 2010, from 173 million in 2009. The
from 173 million in 2009              increasing demand for these devices will have a direct positive impact on the demand for integrated
                                      circuits (ICs), such as processors, sensors, controllers, transceivers, power management, and
                                      connectivity ICs.
                                      Increasing Support for NFC Based Solutions Will Drive the Demand for NFC ICs
                                      The demand for near field communication (NFC) solutions is set to increase in the next couple of
                                      years. The demand for these chips will be sustained by increasing support coming from global
                                      mobile operators. At the Mobile World Congress (MWC) 2011, global operators announced their
                                      intention of commercializing NFC-based services by 2012. This technology will not only be limited
                                      to mobile payments, but is expected to extend to other services and applications such as mobile
                                      ticketing, mobile couponing and access control. NFC was the dominant theme at the recent MWC
                                      and the market for these solutions will increase as many prominent handset vendors like Nokia,
                                      Samsung and RIM include this technology in their smartphones in 2011.

                                        NFC Smartphones Market Share By Geography, Forecast for 2015

                                                                         Middle East and Africa
                                                                                  1%

                                                          Asia-Pacific
                                                             21%




                                                                                                                  North America
                                                                                                                       49%




                                                           Europe
                                                            28%


                                                                                 Latin America
                                                                                       1%

                                        Source: GBI Research




Smartphone Integrated Circuits (IC) Market to 2020 - Greater                                                GBISC0014MR / Published MAY 2011
Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and
GPS will Increase Demand                                                                                                                   Page 1
                                                                           © GBI Research. This is a licensed product and is not to be photocopied
                                      New Standards Such as LTE Will Have a Positive Impact on the Semiconductor Content in
                                      Smartphones
                                      The demand for higher quality services from smartphone users will drive LTE chipset revenues.
                                      The latest smartphones support advanced voice, video and data applications. The high definition
                                      (HD) video supported by most high end smartphones stretches 3G networks to breaking point. 3G
                                      technologies offer higher bit rates compared to 2G, but given the ever increasing demand for
                                      wireless broadband, wireless service providers can now improve the economics of deploying
                                      mobile broadband networks; taking advantage of the technological innovation.
                                      Multiple vendors in the semiconductor market are now developing LTE chipsets. Many carriers are
                                      now committed to this technology, which is expected to drive the LTE silicon market. The
                                      successful deployment of LTE networks will have a positive impact on baseband and radio
                                      frequency (RF) manufacturers. Smartphones are going to be the dominant users of multi mode LTE
                                      chipsets. Although high-speed downlink packet access (HDSPA) is the dominant 3G technology in
                                      mobile shipments, it is forecast that LTE will be the fastest growing technology in 2011.
                                      Mobile Applications Will Drive the Smartphone IC Market
                                      Mobile applications (apps) are continuing to grow across the various operating systems. In July
                                      2008, Apple first launched its App store for mobile applications. Since then, mobile manufacturers,
                                      carriers, brands, and end users have nearly all gauged the success of smartphones by the number
                                      of available apps. This demonstrates that the main perceived difference between a smartphone
                                      and a feature phone is the mobile application software.
                                      The mobile apps market is gaining momentum as more and more smartphone users are getting
                                      direct and easy access to app stores. In addition, the app stores have managed to increase app
                                      numbers to grow their business. Apple’s App store made up more than 80% of the total market in
                                      2010, followed by Blackberry with approximately 7%.
                                      Addressing the Design Complexities of Combo Chips Will be a Major Challenge Faced by
                                      Chip Manufacturers
                                      Combo chips, combining functionalities such as GPS, Bluetooth and FM, are being used across
                                      various product lines. Combo chips are made up of radios, and a fraction of a decibel of
                                      performance makes a big difference. Most handset manufacturers are not willing to give up on
                                      radio performance in order to achieve a smaller size or lower the cost. In these ICs, the radios are
                                      millimeters apart and require extreme attention during the multiple stages of the design process.
                                      Reducing the interference between radio sub-systems in the combo IC and the rest of the handset
                                      is one of the major challenges faced during the system engineering phase. As the system
                                      engineers address these issues, the onus is on the analog designer to reduce interference. Analog
                                      designers face the challenge of deciding the structure of the semiconductor layers, the placement
                                      of the circuits, and keeping spurious products off local oscillator signals. Complex issues such as
                                      these must be carefully estimated by the designers, as errors in the design phase can result in
                                      huge losses.




Smartphone Integrated Circuits (IC) Market to 2020 - Greater                                              GBISC0014MR / Published MAY 2011
Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and
GPS will Increase Demand                                                                                                                 Page 2
                                                                         © GBI Research. This is a licensed product and is not to be photocopied
                                      1         Table of Contents
                                      1   Table of Contents ........................................................................................................................ 3
                                          1.1    List of Tables..................................................................................................................... 6
                                          1.2    List of Figures ................................................................................................................... 7
                                      2   Introduction .................................................................................................................................. 8
                                          2.1    GBI Research Report Guidance ....................................................................................... 8
                                      3   Global Smartphone IC Market – Overview .................................................................................. 9
                                          3.1    Market Overview ............................................................................................................... 9
                                          3.2    Smartphone IC Components – Definitions and Market Trends ....................................... 10
                                             3.2.1    Smartphone IC Design ............................................................................................ 10
                                             3.2.2    Discrete versus Integrated Processors .................................................................... 10
                                             3.2.3    System-on-Chips (SoCs) ......................................................................................... 11
                                             3.2.4    Industry Developments ............................................................................................ 12
                                      4   Smartphone IC Components ..................................................................................................... 13
                                          4.1    Smartphone IC – Breakdown by Device Type ................................................................ 13
                                          4.2    Applications Processor ................................................................................................... 13
                                             4.2.1    Stand Alone Processors .......................................................................................... 13
                                             4.2.2    Integrated Application Processors ........................................................................... 14
                                             4.2.3    Multi-Core Processors ............................................................................................. 14
                                          4.3    Baseband Processor ....................................................................................................... 16
                                             4.3.1    Intel (Compact Multimode LTE/2G/3G platform – XMM 7060) ................................ 16
                                             4.3.2    Icera (Espresso 450 Baseband +RF) ...................................................................... 16
                                          4.4    Memory ........................................................................................................................... 16
                                          4.5    Camera ........................................................................................................................... 17
                                             4.5.1    Image Sensor .......................................................................................................... 17
                                          4.6    Power Management ........................................................................................................ 18
                                             4.6.1    Power Management Integrated Circuits .................................................................. 18
                                          4.7    Touch Screen.................................................................................................................. 18
                                             4.7.1    Touch Screen Technology ....................................................................................... 19
                                             4.7.2    Industry Leading Capacitive Touch Screen Solutions ............................................. 20
                                          4.8    Connectivity ICs .............................................................................................................. 21
                                             4.8.1    Bluetooth ................................................................................................................. 21
                                             4.8.2    Wi-Fi ........................................................................................................................ 21
                                             4.8.3    Global Positioning System ....................................................................................... 22
                                             4.8.4    Near Field Communication ...................................................................................... 22
                                             4.8.5    Combo Chips ........................................................................................................... 23
                                          4.9    User Interface/Sensors ................................................................................................... 24
                                             4.9.1    Accelerometers........................................................................................................ 24
                                             4.9.2    Gyroscopes ............................................................................................................. 25
                                             4.9.3    Compass ................................................................................................................. 25
                                      5   Global Smartphone IC Market, Market Dynamics ...................................................................... 26
                                          5.1    Key Market Drivers ......................................................................................................... 26
                                             5.1.1    Rising Demand for Smartphones will Improve Sales for Chip Makers ..................... 26
                                             5.1.2    Rise in Smartphone Shipments will Drive the High-End OLED Display Market ....... 27
                                             5.1.3    Deployment of New Standards Such as LTE (Long Term Evolution) Network will
                                                      Directly Impact the Semiconductor Content in Smartphones .................................. 27
                                             5.1.4    Support for Commercial Near Field Communication Services will Increase the Sales
                                                      of NFC ICs ............................................................................................................... 28
                                             5.1.5    Mobile Apps Driving Smartphone IC Market ............................................................ 30
                                          5.2    Key Market Restraints ..................................................................................................... 32
                                             5.2.1    Shortage in Supply of Display and Camera Components ........................................ 32
                                             5.2.2    Mobile Virtualization Technology will Reduce the Chip Count and the Overall Cost of
                                                      Materials for Smartphones ...................................................................................... 32
                                          5.3    Key Industry Challenges ................................................................................................. 32


Smartphone Integrated Circuits (IC) Market to 2020 - Greater                                                                           GBISC0014MR / Published MAY 2011
Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and
GPS will Increase Demand                                                                                                                                                         Page 3
                                                                                         © GBI Research. This is a licensed product and is not to be photocopied
                                            5.3.1      Fitting More Functions Onto Smaller Spaces .......................................................... 32
                                            5.3.2      Addressing the Design Complexities of Combo Chips ............................................ 33
                                      6 Global Smartphone IC Market – Analysis and Forecasts .......................................................... 34
                                         6.1    Global Smartphone IC Market Revenue and Forecasts, 2005-2020............................... 34
                                         6.2    Global Smartphone Vendor Analysis .............................................................................. 36
                                      7 Global Smartphone Market Analysis and Forecasts Based on Region, 2005-2020 .................. 38
                                         7.1    Smartphone Market, Asia-Pacific, Analysis and Forecast, 2005-2020............................ 38
                                         7.2    Smartphone Market, Japan, Analysis and Forecast, 2005-2020..................................... 40
                                         7.3    Smartphone Market, North America, Analysis and Forecast, 2005-2020 ....................... 42
                                         7.4    Smartphone Market, Latin America, Analysis and Forecast, 2005-2020 ........................ 44
                                         7.5    Smartphone Market, Europe, Analysis and Forecast, 2005-2020 ................................... 46
                                         7.6    Smartphone Market, Middle East and Africa, Analysis and Forecast, 2005-2020........... 48
                                      8 Global Smartphone IC Market Analysis and Forecasts on the Basis of Component Type, 2005-
                                         2020 .......................................................................................................................................... 50
                                         8.1    Global Processor Component Market Sizing and Forecasts, 2005-2020........................ 50
                                            8.1.1      Global Application Processor Market Sizing and Forecasts .................................... 50
                                            8.1.2      Global Baseband Processor Market Sizing and Forecasts, 2005-2020................... 52
                                         8.2    Global Memory Component Market Sizing and Forecasts, 2005-2020 ........................... 54
                                         8.3    Global Camera Component Market Sizing and Forecasts, 2005-2020 ........................... 56
                                         8.4    Global Power Management Component Market Sizing and Forecasts, 2005-2020 ........ 58
                                         8.5    Global Touch Screen Component Market Sizing and Forecasts, 2005-2020 ................ 60
                                         8.6    Global Connectivity ICs Market Sizing and Forecasts, 2005-2020 ................................. 62
                                            8.6.1      Wi-Fi ........................................................................................................................ 63
                                            8.6.2      GPS ......................................................................................................................... 63
                                         8.7    Global User Interface/Sensor Component Market Sizing and Forecasts, 2005-2020 ..... 64
                                            8.7.1      Global Accelerometer Market Sizing and Forecast, 2005-2020 .............................. 66
                                            8.7.2      Global Gyroscope Market Sizing and Forecast, 2005-2020 .................................... 69
                                            8.7.3      Global Smartphone Compass Market Sizing and Forecast, 2005-2020 .................. 72
                                         8.8    Global Smartphone RF/PA Market Sizing and Estimates ............................................... 75
                                      9 Global Smartphone IC Market, Competitive Analysis, 2010 ...................................................... 76
                                         9.1    Application Processors, Competitive Analysis ................................................................ 76
                                         9.2    Baseband Processor, Competitive Analysis.................................................................... 78
                                         9.3    Memory, Competitive Analysis ........................................................................................ 78
                                         9.4    Camera, Competitive Analysis ........................................................................................ 78
                                         9.5    Power Management, Competitive Analysis ..................................................................... 79
                                         9.6    Touch Screen, Competitive Analysis .............................................................................. 79
                                         9.7    Connectivity ICs, Competitive Analysis ........................................................................... 79
                                            9.7.1      Wi-Fi, Competitive Analysis ..................................................................................... 80
                                            9.7.2      GPS, Competitive Analysis ...................................................................................... 80
                                            9.7.3      NFC, Competitive Analysis ...................................................................................... 80
                                         9.8    User Interface/Sensors, Competitive Analysis ................................................................ 80
                                            9.8.1      Accelerometers, Competitive Analysis .................................................................... 80
                                            9.8.2      Gyroscopes, Competitive Analysis .......................................................................... 80
                                            9.8.3      Compasses, Competitive Analysis .......................................................................... 80
                                      10 Global Smartphone IC Market, Key Players .............................................................................. 81
                                         10.1 Broadcom Corporation .................................................................................................... 81
                                            10.1.1 Overview ................................................................................................................. 81
                                            10.1.2 Major Products for the Smartphone Market ............................................................. 81
                                            10.1.3 Recent Developments and Operational Atmosphere............................................... 81
                                         10.2 Intel ................................................................................................................................. 82
                                            10.2.1 Overview ................................................................................................................. 82
                                            10.2.2 Major Products for the Smartphone Market ............................................................. 82
                                            10.2.3 Recent Developments and Operational Atmosphere............................................... 82
                                         10.3 Qualcomm....................................................................................................................... 83
                                            10.3.1 Overview ................................................................................................................. 83

Smartphone Integrated Circuits (IC) Market to 2020 - Greater                                                                           GBISC0014MR / Published MAY 2011
Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and
GPS will Increase Demand                                                                                                                                                         Page 4
                                                                                          © GBI Research. This is a licensed product and is not to be photocopied
                                            10.3.2 Major Products for the Smartphone Market ............................................................. 83
                                            10.3.3 Recent Developments and Operational Atmosphere............................................... 83
                                         10.4 ST Microelectronics ........................................................................................................ 84
                                            10.4.1 Overview ................................................................................................................. 84
                                            10.4.2 Major Products for the Smartphone Market ............................................................. 85
                                            10.4.3 Recent Developments and Operational Atmosphere............................................... 85
                                         10.5 Samsung Semiconductor ................................................................................................ 86
                                            10.5.1 Overview ................................................................................................................. 86
                                            10.5.2 Major Products for the Smartphone Market ............................................................. 87
                                            10.5.3 Recent Developments and Operational Atmosphere............................................... 87
                                         10.6 Texas Instruments ..................................................................
								
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