In-Stat/MDR: DSL IC Market Rebounding, Shifting to VDSL

The market for DSL ICs rebounded, in terms of port
shipments, in 2002, after a difficult 2001 that was characterized by an
excess of inventory in the face of slower overall deployment of ADSL
than had originally been expected at the height of the of telecom
“bubble” in 2000. The high-tech market research firm finds that total
silicon shipments rose from 38.1 million ports in 2001 to 50.0 million
ports in 2002. However, due to declining ASPs, total DSL IC revenue fell
from US$ 699.0 million in 2001 to US$ 594.9 million in 2002.

In-Stat/MDR expects the total market for DSL ICs to grow from
about 50.0 million ports in 2002 to 107.9 ports by 2007. Likewise, total
revenue is expected to rise from about US$ 594.9 million in 2002, to US$
732.8 million by 2007.

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