MID IC demand to hit $2.6B in 2012
TI and Qualcomm are in the best positions to supply standalone applications processors for all classes of mobile Internet devices, according to Forward Concepts. Meanwhile, the market research company estimates Intel has a better shot at ultra-portable PCs, where x86 and battery life requirements compare to those of notebooks.
By Suzanne Deffree, Managing Editor, News -- EDN, June 12, 2008
Shipments of MIDs (mobile Internet devices) are set to explode, with semiconductor vendors set to reap the gains of the associated IC demand, according to one research company.
Forward Concepts today predicted MID unit shipments will grow from 305,000 in 2008 to almost 40 million in 
2012, reaching $12 billion in revenue. Geographically, nearly half of the estimated 2012 unit shipments will be in North America and Europe, with Japan and China following acting as smaller MID markets, according to the company (see chart, right).
The research company defines a MID as a device that serves a gap between high-end smartphones and UMPCs (ultra-portable PCs). MIDs, said the company, require hardware, software, and form factor be designed from the ground up to meet market requirements for features, price, performance, and power usage. Forward Concepts specifically exampled user interface as key to success in the MID market, stating that MID user interfaces will likely need to be capable of responding not only to touch-based inputs but also keep pace with other evolving input methods such as ones based on motion, gesture, and placement.
According to Forward Concepts’ data, ICs for MIDs are forecast to grow from $29 million in 2008 to $2.6 billion in 2012.
As it stands now, chip market leader Intel will not lead this IC growth, the research company suggested, despite putting its weight behind MIDs as part of its Atom processor campaign. Instead, Forward Concepts reported that Intel has a much better shot at UMPCs, where x86 compatibility is important and where battery life expectations are in line with those of notebooks.
Texas Instruments, with its mature and proven OMAP application processor family and the largest market share of the standalone smartphone applications processor market, is one of the two best-positioned non-x86 semiconductor vendors for supplying standalone applications processors for all classes of MIDs, Forward Concepts said.
The market research company also pointed to Qualcomm as the other best-positioned non-x86 semiconductor vendor, noting its SnapDragon application processor and the company's market-leading 3G wireless solutions required for the MID market.
Other chip suppliers will have plays in the MID market, including Nvidia, with its strong graphics capability for gaming applications, and Samsung, with its applications processor experience and stacked memory capability, Forward Concepts said.
Forward Concepts also made note of Apple’s and Microsoft’s placement in the MID market.
The research company said that while Apple's 3G iPhone will plows new ground in Internet access, user interaction, and utility, it does not consider the iPhone to be a MID. Forward Concepts said that a true MID also requires a larger 4- to 6-inch screen with higher resolution (VGA), TV out, and optional mobile TV capabilities.
On the Microsoft front, Forward Concepts President Will Strauss said that the research company does not envision MIDs as ever employing Microsoft's Vista operating system.
“However, we believe that Microsoft has a MID play with future versions of Windows Mobile. Of course, Linux will be popular in MIDs for its lower processing overhead and tighter OEM control," Strauss said in a statement.
