MOUNTAIN VIEW, Calif. -- Sales of
networking silicon increased 15% in 2006 according to the latest
market share numbers released today by The Linley Group. Network
processors, broadband ICs, and semiconductors for Gigabit Ethernet
switches were among the fastest growing product markets.
In network processors, Intel had a wave of design wins enter
production, which catapulted the company to the top of the rankings
ahead of long-time leader AMCC. Agere and Wintegra both grew
substantially, as did 10Gbps NPU suppliers Bay Microsystems and
EZchip. In broadband, DSL IC sales recovered, and Broadcom grew more
than 70% to nearly overtake top-ranked Conexant. PON IC sales grew,
but at a disappointing 20% rate as the pioneering Japanese market
cooled and expansion into other geographies was limited. Switching
drove Gigabit Ethernet revenue growth as enterprises improved their
LAN infrastructure to take advantage of the growing base of PCs
bundled with GbE connections. Broadcom was the leading supplier in
this hot area, which, along with DSL, helped the company grow at twice
the rate of the entire industry and become bigger than its next three
largest competitors combined.
Details are available in "Networking Silicon Market Share 2006" a
report released today by The Linley Group, the leading provider of
independent analysis of the networking-silicon industry. It provides
market-share information for more than fifteen categories of wired
communications products, including network processors, Gigabit
Ethernet components, broadband transceivers, interconnect chips,
encryption accelerators, and other networking ASSPs.
The report also contains market share for 10GbE NICs, high-speed
embedded microprocessors, and processors for cellular handsets.
Startup Neterion extended its lead in the 10GbE NIC market, while
Intel maintained its second-place ranking despite losing share
because of its outdated offering. Among the top-ranked embedded CPU
suppliers, AMCC was the fastest growing but trailed Intel, IBM, and
Freescale. On the handset side, TI maintained its market share lead
in both baseband processors and application processors, but its
baseband growth slowed due to price pressure. Qualcomm showed strong
growth driven by market adoption of its 3G chip sets.
"We are pleased to offer this report to chip vendors, investors, and
OEMs seeking to understand how product markets and suppliers'
positions have changed over the past year," said Linley Gwennap,
Principal Analyst, The Linley Group. "Understanding the dynamics
among networking silicon suppliers requires a firm grasp of both
technology developments and the state of the market. Through our
research, analysis, and business insights, we're able to offer both
perspectives to our clients."