My predictions for 2008 ...

CPE focus for devices made for WiMAX and IPTV types of access. A multifunctional chip or SoC will probably be common for these types of network elements.

Nanometer technology will take off. We will be seeing chips developed around 65nm and 90nm for the communications elements. These chips will also be used mainly for CPE.

Pricing pressures will be significant due to increased market fragmentation and shrinking margins. Single chip solutions for ultra low cost handsets will be one of the fastest growth areas within chip segments

Chip companies will explore contextual-communication services/applications driven by the future Web 3.0 apps which for example could imply combination of GPS and georefrence optimization at chip level

Core network platforms will continue migration towards standard chips in order to reduce OPEX and consolidate data center operations. The collaborative nature of present internet services and open interfaces to share user info will catalyze the move towards standard chips