802.11n to lead the WLAN chip market in 2009

802.11n to lead the WLAN chip market in 2009

by Cage Chao, Taipei

Single chip 1X1T 802.11n solutions are expected to largely replace 802.11g chips this year because the price difference between the two has narrowed, according to industry sources.

Despite the weak economy, demand in the global Wi-Fi chip market, including PC, notebook, networking, consumer electronics and handset segments, is expected to keep growing. Global market demand for Wi-Fi chips this year will increase from 2008, although the growth in production value may be relatively low since chip ASPs will continue to fall, according to Taiwan WLAN chip suppliers.

As 1X1T 802.11n single chips continue to expand in market share, new WLAN applications have also largely adopted 2X2T 802.11n chips offering faster transmitting speeds. 1X1T 802.11n single chips have begun to penetrate into entry-level segments, and 2X2T 802.11n single chips have been adopted in mid-range and high-end products, the sources noted.

Realtek Semiconductor and Ralink Technology, the only two WLAN chip suppliers in Taiwan, have already cut into netbook and desktop PC markets with entry-level and mid-range products, while overseas companies Broadcom, Atheros and Marvell concentrate on 2X2T 802.11n chips for consumer electronics and handset applications.