Fujitsu Sees WiMax Chip Sales Hitting $950 Million By 2011Fujitsu Sees WiMax Chip Sales Hitting $950 Million By 2011

As demand for high-speed, wireless WiMax technology takes off, Fujitsu expects the market for chips that enable the technology to grow from almost nothing this year to $950 million in 2011.

WiMax networks are beginning to be deployed in Taiwan, the United States, and other regions, but there aren't many users yet. WiMax-enabled laptops and other devices are slowly trickling out, and Fujitsu sees rapid growth in the number of users taking place soon.

At the Computex trade show, Makoto Awaga, general manager of Fujitsu's microchip unit, said Wednesday the number of WiMax users globally is likely to reach more than 50 million by 2012.

He also said the energy efficiency of communications chips is vital in driving the sales of WiMax devices, as consumers will demand that mobile devices get better battery life.

Many experts expect a showdown between WiMax and Long Term Evolution (LTE) as the format of choice for the fourth-generation mobile broadband technology. Companies such as Sprint, Clearwire, some cable companies, and Google have backed WiMax, while companies including Verizon Wireless, AT&T, and Alltel Communications have chosen LTE.

But Awaga said this conflict may be overblown.

"Fourth-generation services will be an improvement of the current third-generation services in one form or another. Voice communications are an integral part of the new services," Awaga told Reuters.

"WiMax, on the other hand, focuses on speedier transmissions of data, setting aside voice communications. It is possible to carry voice over WiMax, but I'm not sure if it makes very much sense," Awaga said.

Fujitsu isn't the only chipmaker bullish on WiMax. Intel recently invested $500 million in Taiwan, with most targeted for the WiMax sector.