Lucent Technologies' Microelectronics Group Tops Global Communications Semiconductors Market

Strategic Insights -

Lucent Technologies' Microelectronics Group, based in Allentown, has solidified its position as the world's leading manufacturer of microchips for communications devices, according to a report by industry analyst Dataquest. The group's dominance is reflected in its 9 percent market share and 25 percent growth in communications semiconductors, far surpassing the industry's 4 percent growth rate. The group's president, John Dickson, attributes this success to a strategic bet placed five years ago on the communications space, which has propelled Lucent to a unique position as both the market leader and the fastest-growing semiconductor maker among the top 20 in the industry.

Key Takeaways:

  • Lucent's Microelectronics Group has been ranked No. 1 in the world in making microchips for communications devices such as phones, answering machines, modems, and disk drives by Dataquest.
  • The group has a 9 percent share of the market and has surpassed industry heavyweights Motorola and NEC.
  • Dataquest rates Lucent as the fastest-growing semiconductor maker among the top 20 in the industry.
  • Lucent's growth in communications semiconductors far outpaced the rest of the industry, with a 25 percent increase compared to the 4 percent industry growth rate.
  • The Microelectronics Group has eight chip-making plants and many sales and design offices around the world, with plans to add on to its Lehigh Valley campus by spending $165 million to build an addition to its headquarters in nearby Hanover Township, Lehigh County.
  • Dataquest advises information technology vendors and investors, helping them make product and investment plans, evaluate competition, assess market position, and define strategies.
  • John Dickson, president of the Microelectronics Group, attributed the company's success to a strategic bet placed five years ago on the communications space.

Statistics:

  • Lucent's Microelectronics Group has a 9 percent market share in the global communications semiconductors market.
  • The group's growth in communications semiconductors was 25 percent, far surpassing the industry's 4 percent growth rate.
  • The Microelectronics Group has eight chip-making plants and many sales and design offices around the world.
  • Lucent plans to spend $165 million to build an addition to its headquarters in nearby Hanover Township, Lehigh County.

Sources:

  • Dataquest, "Wired Communications Semiconductors in 1999"
  • Lucent press release
  • Interview with Jack Molets, a Microelectronics Group spokesman