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DSP prices will fall in 2008

By Staff -- Purchasing, 2/14/2008

Electronics buyers can expect prices for digital signal processors (DSP) to fall by about 7% in 2008. DSP tags fell by about 14% in 2007 because of oversupply, according to researcher IC Insights. DSP manufacturers moved to smaller process geometries in chip production, resulting in more chips per wafer. In 2008, DSP unit demand will grow by about 18%, compared to 10% in 2007. At the same time, DSP suppliers are not adding much capacity so there will be less price erosion in 2008.

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