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  • Gigabit Ethernet Transition Opens Door for New Vendors
Mar 2004
MOUNTAIN VIEW, Calif., March 10 -- The market for enterprise-networking silicon is becoming increasingly competitive, according to "A Guide to Gigabit Ethernet Silicon," a new report announced by The Linley Group.

"This is shaping up to be a banner year for Gigabit Ethernet silicon," according to the company, a provider of independent technology analysis for the networking-silicon industry. "With sales projected to exceed those of fast Ethernet chips, vendors are using this technology transition to jockey for market share."

Despite strong competition from incumbent vendors Broadcom and Marvell, new vendors are jumping into the Gigabit Ethernet fray, enticed by the prospect of high growth and substantial size, the company said.

"Although the Ethernet market has long been dominated by Marvell and Broadcom, major communication vendors are finding its shear size too tempting to ignore," said the report's coauthor Bob Wheelerand, a senior analyst at The Linley Group.

The report identifies three key Gigabit Ethernet segments: Gigabit Ethernet switches, GbE-over-copper physical layer (PHY) components; and single-chip controllers for adapter and LAN-on-motherboard applications.

"New competitors are introducing innovative technology, but selecting the winners just became more complex."
"We're already seeing the first wave of acquisitions in this space," says Jag Bolaria, coauthor and senior analyst at The Linley Group. "Large vendors are snapping up startups to fill holes in their solutions in order to capitalize on the demand and avoid getting left behind. The ever-increasing thirst for bandwidth is fueling the demand for devices capable of supporting that growth."

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