Mobile device semiconductors were one of the few “bright spots” in a chipset market that stalled in 2011, according to new figures from ABI Research.

Revenue from chipsets designed for mobile devices increased by more than 20 percent to US$35 billion in 2011, while the total semiconductor market managed just 2 percent year-on-year growth.
 
“It’s tempting to describe this industry as lacklustre,” commented ABI Research’s Peter Cooney. “But then, some segments of the semiconductor market are booming and vendors concentrating on the mobile device sector have delivered very healthy growth in 2011.”

The firm notes that strong growth in smartphones, media tablets, and e-book readers is swelling the market for “a range of semiconductor components including modems, applications processors, wireless connectivity ICs, MEMS sensors, and audio ICs.”

Platform ICs (including modems, applications processors, RF components, and PMUs) account for the bulk of overall revenues, but are becoming an increasingly competitive section of the market, says ABI. Instead, it notes that “growth and opportunities” will be more prevalent within wireless connectivity ICs (Bluetooth, Wi-Fi, GPS, NFC, etc.) as well as MEMS sensors and audio. Growth across the three segments will top a 30 percent CAGR from 2011 to 2016.

The top ten chipset suppliers now account for more than 75 percent of total revenues, and their dominance “will continue to build as niche suppliers are acquired or muscled out of the market,” says ABI.