$2B chip market in alternative energy

Alternative energy systems and the semiconductors used in them could grow at an annual rate of as much as 40 percent over the next several years, according to a new market research report. Solar, wind and fuel cell systems consumed an estimated $800 million in semiconductors in 2008, a figure that could rise to nearly $2 billion by 2012, according to the report from The Information Network (New Tripoli, Penn.). The chips involved are primarily MOSFETs, IGBTs, microcontrollers, DSPs and discretes used to convert the renewable energy from AC to DC power. Some of the anticipated growth will come as the result of the recently passed economic stimulus package that calls for spending about $43 billion on alternative energy including about $4.3 billion on smart electric grids.

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