Embedded DSPs offer potential

The use of digital signal processors (DSPs) in the design of customer-specific products, or application-specific integrated circuits (ASICs), offers a high-growth, high-margin opportunity, according to Cahners In-Stat/MDR.

The research firm reports that worldwide merchant market dollar shipments of high-complexity, cell-based designs, containing at least one or more blocks of embedded DSP, are forecast to grow from $170 million in 2001 to $400 million by 2006.

"DSPs have been available for over 20 years, primarily offered as standalone products, as well as application-specific standard products. While these types of products have been widely used and advertised, the use of DSPs in ASICs holds great promise," says Jerry Worchel, a senior analyst with In-Stat/MDR.

"However, as is the case with virtually any customer-specific, high-complexity, system-level design, performance will be the driving force behind higher and higher levels of integration. Another factor, although not as critical, will be system space limitations. While time-to-market will always be a consideration, in the case of high-complexity design solutions, it will normally be a second-order factor, as these designs can take anywhere from 12 to 24 months to reach production status."

In-Stat/MDR has also found that:

* In the embedded DSP market, high-end communications applications, in both the wired and wireless segments, will dominate product consumption, accounting for over three out of every four product dollars consumed.

* On the geographic side, it will be the Americas, followed by Europe and Japan that will control future product consumption. The Americas will average slightly below a 50% consumption market share.

* Captive shipments of high-complexity designs containing at least one block of embedded DSP, along with a variety of other logic, memory and/or analogue functions, represent a value estimated at between 150% and 200% of the merchant market segment value.