Tech Hardware Supply Chain - Gazhoo

Bhavin Shah
(852) 2800-8538
bhavin.a.shah@jpmorgan.com
112
Asia Pacific Equity Research
20 April 2009
Figure 61: Worldwide mobile semiconductor revenue by region (2008 and 2012)
Bn USD
18
16
14
12
10
8
6
4
2
0
Source: IDC, 2008.
United States Western Europe Japan Asia Pac (Ex
2008 2012
Japan)
Although 2.5G handsets accounted for 51% of the handset semiconductor revenue in
2008, IDC expects this to decrease to 45% in 2009 when the 3/3.5G market should
surpass it, accounting for an estimated 48% of total revenue. In 3G technology,
CDMA2000 1X EV-DO and WCDMA networks are being introduced in major
geographies. 3.5G technology is also gaining foothold in the industry with more than
100 HSDPA networks launched, most of which are extensions of current WCDMA
networks.
Table 60: Worldwide mobile phone semiconductor revenue by air interface standards, 2007-2011
US$ in billions
2007 2008 2009 2010 2011 2012 CAGR (%)
3.5G 2.4 7.3 9.0 11.6 13.7 14.9 19.3
HSDPA/HSUPA 2.4 7.3 9.0 11.6 13.7 14.9 19.3
3G 10.7 8.9 8.8 10.4 11.2 11.7 7.1
CDMA2000 1X EV-DO 3.2 3.3 3.3 3.7 4.0 4.2 6.0
WCDMA 7.5 5.6 5.4 6.2 6.8 6.9 5.6
TD-SCDMA 0.0 0.1 0.5 0.5 0.6 124.6
2.5G 22.3 20.3 16.9 15.4 14.9 14.2 -8.5
CDMA2000 1XRTT 3.5 2.7 2.3 1.9 1.7 1.5 -13.7
GSM/GPRS 9.4 6.4 5.1 4.4 4.1 3.8 -12.5
EDGE 9.4 11.1 9.5 9.2 9.1 8.9 -5.4
2G 3.1 3.0 2.6 2.6 2.5 2.3 -7.0
GSM 2.8 2.8 2.5 2.4 2.4 2.1 -6.8
CDMA/TDMA/PDC/iDEN/PHS 0.3 0.2 0.1 0.1 0.1 0.1 -9.8
Total
Source: IDC, 2008.
38.5 39.5 37.3 39.9 42.3 43.0 2.1
ROW
Increase in sales of mobile phones should directly affect semiconductor sales in a
positive way. So, the growth in high-end mobile phones (N95, iPhone, BlackBerry,
O2) should have a higher impact, as semiconductor content is much higher in these
mobiles.