General purpose DSP market down 2% in 2005

The market for general-purpose digital signal processor (DSP) chips dipped 2% in 2005 to the $7.6 bln level because of a severe drop in the China cellular market in the first half of 2005. According to Forward Concepts, that market will resume growth to a healthier 15% level in 2006, driven primarily by the 3G and 2.5 cellular markets. DSP technology in the embedded DSP market has grown to $14.3 bln, nearly twice that of general-purpose DSP chips. The general-purpose DSP market was slightly down 2004, but market leader Texas Instruments grew another 15%, and gained 8% to reach a 58% market share. Freescale Semiconductor was the only other major chip company to gain market share, growing 7.2% to a 14% market share. The other key players, Agere Systems and Analog Devices, saw DSP revenue declines because they were more heavily tied to the Asia Pacific market when it crashed in the first half of 2005.