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Scottsdale, Ariz. -- Despite the continued downturn in expenditures for telecom components, 2002 was surprisingly strong for suppliers of MEMS (microelectromechanical systems)-based solutions to the optical networking market, reports In-Stat/MDR.
The high-tech market research firm attributes much of this to the fact that many of these devices have now passed Telcordia standards, giving them real respectability within the market. As a result, a number of companies saw their shipments move beyond sampling and into volume production in 2002.
Even though near-term market conditions will remain tough, the long-term prospects for the communications market remain very strong. As a result, although the market for MEMS in optical networking may be down from previous forecasts, it is by no means out - with revenues seeing a CAGR of 41.8 percent through 2007.
In-Stat/MDR has also found that:
- In 2002, there was strong movement of 3-D switches into the market. Since these switches have a very high price point, their sales generated significant levels of revenue.
- MEMS suppliers can expect a strong increase in customer demand and design wins in the 2004/2005 timeframe. This will translate into real revenue growth in 2006 and 2007. Up until then, the market is slowly moving forward with increased sampling and unit shipments to a greater number of customers.