Chips intended for broadband technologies generated estimated revenues of $2.2 billion during the quarter 3Q07. Broadband chip shipments for the same period were estimated at 119.23 million units.

Texas Instruments maintained lead in this segment with around 28% of the total share. ST Microsystems is the second largest player with 20% market share. Other significant players are Freescale, Broadcom and Infineon.

CPE remained the major consumer of broadband chips. Average selling price in this segment continues to decline. This is reflected by the fact that while top vendors in this category have increased their unit shipments, the revenue increase is not proportionate.

For a chip vendor, maintaining leadership in the overall communications chip market is very much dependent on the leadership in this segment. Broadband and cellular are the two major segments in the telecoms market for chip vendors.