The semiconductor business is all about speed, but the rate at which tablets are changing the market has even some of the most seasoned chipmakers racing to keep pace. Tablets are now the 8th largest market for semiconductors, up from the 35th just a year ago, according to research from IHS iSuppli. “The speed of the media tablet’s rise from near insignificance to top-tier prominence is unprecedented in the history of the global semiconductor industry,” said Dale Ford, head of electronics & semiconductor research for IHS. The firm predicts that by 2014 media tablets will be the fourth largest market for semiconductors, behind handsets, notebook computers, and PCs.
Right now PCs are still the dominant market for semiconductors, but IHS iSuppli says that is about to change. The firm says that by next year, handsets will be the biggest market for semiconductors.
The shift from computers to mobile devices has caused a seismic shift in the semiconductor business, and left industry giant Intel struggling to shift gears. Its chips are have been the brains of most PCs for years, but initially they were not efficient enough to power smartphones without sucking down the batteries, leaving openings for competitors like ARM and Qualcomm. But Intel is moving fast to enter the mobile arena. Last year the company said it has plans to release ten tablet models that will run on its chips.
