Wave Issue 0310 4/11/03 Article 5-02

***In-Stat: Popularity of WiFi Drove WLAN Chip Market in 2002
(April 7)

In-Stat reported today that the year 2002 was a good year for
wireless LAN component manufacturers, with sales of wireless LAN
chipsets growing strongly over the previous year, despite a slow
world economy and a slow semiconductor market in general. Market
research firm In-Stat/MDR reports that most of these sales were
driven by the huge popularity of 802.11b (Wi-Fi). However,
802.11g products have started to arrive, and 802.11a and combo
chips will also play into the mix.

In-Stat/MDR has also found that:

- Despite terrorism concerns, a slow worldwide economy, and a
poor time for semiconductor manufacturers in general, wireless
LAN chipsets sold, grew more than twice the level of the previous
year, to over 20 million.

- In 2003, the amount of growth in wireless LAN doesn't show any
signs of slowing down. With wireless LAN chip prices still
dropping rapidly, and the number of uses for these chips
increasing, there is no question, according to In-Stat, that the
growth of Wireless LAN will continue. In 2003, the number of
chipsets forecast to be sold will reach over 33 million, and by
2007, the number of wireless LAN chipsets is forecast to be over
94 million.

- Fueling growth is one application with a second, potentially
important, application waiting in the wings. The current
application is the laptop, perhaps the original wireless LAN
application that started it all. Both Intel and Microsoft want to
see wireless LAN included in all new laptops sold, and
indications are that soon it will be. In-Stat/MDR is forecasting
that by the end of next year, over 70% of new laptops purchased
will come with some type of integrated wireless LAN support. The
second wireless LAN application is wireless LAN embedded in a
cellular handset and used for Voice-over-IP (VoIP). While this
application is still in its infancy, the potential for hundreds
of millions of wireless LAN chips is certainly present.

The report, "The Wireless Road Ahead - The Wireless LAN Chip
Market Today and Beyond", covers wireless LAN technology from
both a standards and component point-of-view, and explores the
many changes occurring in the industry. In addition, the report
takes a look at the companies making WLAN chips and the products
they are developing. The report contains chipset forecasts
through 2007; including chipsets by standard and WLAN chipset
revenue by standard. Breakouts are included for the home and
enterprise, and include subtotals by type of end-product device,
along with forecasts for WLAN chips in laptops and cellular
handsets. In addition, the report includes company profiles of 24
wireless LAN component manufacturers, including their current
products and an analysis of their place in the market. The report
price is $3,695 U.S. Dollars.

www.instat.com