The current synchronized global economic downturn and the consequent softening in demand for wireless handsets has resulted in significant contraction in the handset radio-frequency (RF) semiconductor market during 2001.

New analysis from Frost & Sullivan, San Jose, World Handset RF Semiconductor Markets, reveals that this market is expected to generate revenues totaling $4.98 billion for the full year 2001. As the economy recovers, the market is expected to quickly overcome the short-term effects of economic downturns and rapidly climb through 2005.

Despite the enormous potential of the RF-semiconductor market, the report said, participants must focus on next-generation (2.5G and 3G) technology to realize gains over the long term. As service providers prepare to upgrade their existing networks and install new networks to provide voice, data, and video services, semiconductor manufacturers must address the challenges of these technologies.

The need for handsets to support multiple air-interface standards, and the integration of global positioning system and Bluetooth functionality into handsets, will spur semiconductor firms to devote substantial resources to research and development.

At the same time, Frost and Sullivan said, increasing demand for complete system solutions will force vendors to expand their product offerings.

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