The silicon opportunity of the new millenium-digital information appliances

The century which is just ending saw the birth and growth of the computer industry, which has been the primary driver in growing semiconductor revenues from $7 billion in 1977 to $125 billion in 1998. Semiconductor technologists and executives often ask themselves what will drive the next big silicon market. We believe that the next century will be that of ubiquitous computing, as the convergence between voice and data communications, consumer electronics and personal computers, Internet and Intranet commerce gives birth to a new class of hardware device: the information appliance. We project these devices will grow at an astounding compounded annual growth rate (CAGR) of 50-75% versus the PC unit growth rate of 12-14% in the next five to ten years. We believe that the emergence of the appliance age will provide the single biggest growth opportunity for semiconductors in the coming decade and beyond.