Despite some inventory issues in the wireless market that occurred during the first half of 2007, this year's wireless revenue is working its way toward the Rs.161,793.16 crore ($40 billion) mark. Regions contributing most notably are China, with over 17 per cent share of consumption, Europe with 19 per cent share as a whole, and Japan with 15 per cent share. The transition of the wireless industry into a maturing market has somewhat slowed the overall growth rate, but there are specific regions that are continuing to provide optimal results for suppliers. India stands to be the fastest growing region at present for wireless semiconductor revenue.

In India, as production facilities continue to ramp, this region is attracting organisations from Europe, America, and even China. Not only is lower manufacturing cost making this region desirable, but also the domestic demand for wireless products is prompting companies such as Huawei Technologies, Samsung, and Nokia to explore production opportunities here. Most of the demand is coming from low-cost GSM handsets, but there are growing opportunities in infrastructure and fixed wireless as well.

Databeans estimates that the market for wireless semiconductors in India will reach Rs.2,499.0 crore ($618 million) this year. Growing at an expected compound annual growth rate of 26 per cent each year, well over the worldwide average of 15 per cent, revenue for this region is expected to reach just under Rs.8,089.66 crore ($2 billion) by 2012. Several conditions in this region will continue to drive this growth including exponential growth in subscribers. India has a population approaching well over 100 crore (1 billion), and while wireless telephony far outweighs land line subscribers, a majority of the population has been barely touched in terms of penetration. Several periodicals have reported that this country adds between 50 lakh (5 million) and 60 lakh (6 million) new mobile phone subscribers every month. Currently, the country boasts around 17.5 crore (175 million) wireless subscribers,which is less than 20 per cent of the total population. industry.

databeans estimates, September 2007 Worldwide Wireless Semiconductor Revenue Forecast by Region

Susie Inouye (sinouye@databeans.net) Susie Inouye is a Research Director at Databeans, Inc., and is responsible for overseeing syndicated research projects, consulting services, and client sponsored studies. After graduating with honours from California State University, Hayward in 1994 with a degree in Economics, Susie joined National Semiconductor as a systems analyst and program manager. Inouye left the department to take on a position as industry analyst in the Worldwide Market Intelligence group.