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Not quite. Like any other part of the high-volume electronics industry, this sector will see falling ASPs due to technological advances, increased manufacturing output, and supplier competition. And since tight coupling between handset components is crucial to reducing power consumption and increasing performance, companies that offer discrete power solutions are going to suffer at the hands of those offering integrated platform solutions.
The main reason China's semiconductor market is growing so quickly is because China's consumer electronics market is very big and growing bigger. Demand for high-valued added chips like National's continues to be high. We don't forecast an industry slowdown, especially in the higher value-added chips, for some years to come.
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~ T.S. Eliot (September 26, 1888 - January 04, 1965)