Semiconductors in test and measurement equipment

25 January 2006 News

Telecommunications continues to be the driving force in the test equipment space, along with automatic test equipment (ATE) that is used in manufacturing some of the semiconductors consumed by that market.

As networks continue to proliferate, more equipment is required to monitor and provide the essential data for uninterrupted service - a key differentiator between service providers.

Semiconductors used in test and measurement equipment constitute 38% of the $18 bn industrial semiconductor market. Market research firm, Databeans, has estimated that this market is growing at 8% on average annually and should reach over $10 bn by 2010.

Just about every sector of the electronics industry relies upon test and measurement equipment for the support of electronics devices, whether in design phases or much later after installation has been completed. It almost goes without mentioning that electronic systems have become so complex that more sophisticated testing is a requirement and not simply a benefit. The test and measurement equipment market is estimated to reach $21 bn by 2010, up from $15,7 bn this year.

Databeans' new research discusses the semiconductor market in this application area. Product areas covered include telecoms testing equipment, ATE, general purpose test equipment and handheld units. A significant finding is that semiconductor revenue in this segment is outperforming end equipment sales due to higher margin precision products as well as increasing semiconductor content, where devices are replacing electromechanical systems.

For more information contact Susie Inouye, Databeans, sinouye@databeans.net

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