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Embedded control sector set for strong growth

The embedded control market – made up of devices comprising standard off the shelf microprocessors (MPUs) and microcontrollers (MCUs) - continues to outpace the overall semiconductor market, according to Semico Research.
The embedded control market – made up of devices comprising standard off the shelf microprocessors (MPUs) and microcontrollers (MCUs) - continues to outpace the overall semiconductor market, according to Semico Research.

Improving economic conditions worldwide, lower ASPs enabling more penetration into new markets and emerging new standards are just some of the factors that are stimulating growth.

Though it is a separate market, the PC market is an indicator of the overall health of the embedded control market.

According to Semico, Intel and AMD, the leading players in the PC chip market, are integrating more features in computing MPUs, thereby increasing silicon value.

The computing market garners a great deal of attention due to the high level of dollar sales generated.

While the size of the embedded control market is smaller in terms of dollar sales, there is greater opportunity for multiple vendors.

"Explosive in 2005, sales for embedded controllers will grow by 13.8% compared to 2% for the rest of the industry," said Semico chief of technology Tony Massimini.

"Growth has been driven in particular by core-based products and MIPS and ARM showed considerable growth among its semiconductor partners."

He went on to say that the market for embedded controllers will hit US$31.8 billion in 2005. "By 2009, this market will surpass US$52 billion," said Massimini.
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