VoIP chip market 2Q07 update

VoIP chips generated revenues of $653 million during 2Q07 with shipments touching 27 million units. These shipments include baseband chips used for various VoIP equipments on core and CPE side, as well as silicon which incorporates VoIP capability as a secondary functionality.

Broadcom leads the market. CPE chip vendors are leading the market in general owing to large volume shipments. Although average selling prices of chips are declining, volumes of CPE being shipped each quarter offsets the reducing prices. Broadcom has a revenue share of around 27%. Texas Instrument follows the market with around 20% of the share. Other challengers in the market include Infineon, STMicrosystems and Zarlink. Besides some important players in VoIP chip market are Conexant, Mindspeed, Centillium and Octasic. VoIP chip segment features startups and privately held companies among the leaders. The only other chip segment where startups are prominent is the optical networking chip segment.

Zarlink which recently acquired Legerity was able to capture over 5% of the total VoIP chip market during 2Q07.