PLDs to Stay Strong

Despite the ASIC market showing signs of seasonal weakness, programmable logic device (PLD) shipments displayed surprising strength, thereby meriting raised forecasts for both by iSuppli Corp., based on sufficient positive indicators.

The ASIC market had a seasonally weak first quarter,

even though it finished last year fairly strong, performing at about the same level as the overall semiconductor market, the El Segundo, Calif. market research firm said, and raised its forecast to 15.4 percent revenue growth for the segment this year, up from 13 percent previously.

In the PLD segment, sequential growth approached 10 percent and for the second quarter in a row. PLD revenues exceeded expectations, setting the stage for a stellar year for programmable logic, iSuppli said.

Even with communications still in a multi-year slump, the PLD market is seeing increasing demand from industrial, data processing and consumer applications, thereby warranting a raise in iSuppli’s PLD market forecast to 28.3 percent revenue growth for 2004, up from 16.7 percent previously.

Increased expectations for 2004 have also pulled up the long-term growth forecast, the firm said, although overall trends are holding. In both ASIC and PLD categories, iSuppli expects 2004 should be the best year for growth within its current forecast horizon, slowing down somewhat next year, and cooling significantly in 2006, except for PLDs, which is expected to show moderate improvement. Beyond 2006, iSuppli predicts low single-digit growth for ASICs and double-digit increases for programmable logic.