WLAN Semiconductors a Hotbed for Industry Growth.

While diminishing memory chip price points continue to hinder growth of the overall semiconductor industry and research firms including iSuppli cut '08 chip forecasts as the sector finally starts feeling the pinch of a weakening global economy and decreased consumer spending, connectivity is emerging as its saving grace.

IDC reported today that the worldwide WLAN semiconductor market is pegged to surpass $4 billion in annual sales by 2012 with a CAGR of 22.8%.

Moreover, while PCs are expected to remain the numero uno WLAN application, mobile phone apps are anticipated to grow at a CAGR of 49.3%. With regard to major growth drivers, the latest edition of 802.11 alphabet soup technology - 802.11n technology - is expected to lead the way.

In other recent semiconductor industry news:

The SIA recently stated that the ongoing credit crisis is absolutely hurting demand for semiconductors. The association also insinuated that when it releases its annual industry outlook on 11/9, the report won't be pretty;

Fairchild and Alpha & Omega settled their legal patent dispute and entered into a cross license agreement;

Piper Jaffray upgraded its rating on Volterra Semiconductor (NASDAQ: VLTR) to "Buy" from "Neutral" largely due to a surge in 3rd quarter profits and high expectations for the company's new server platform product offering; and


Legacy Holding, Inc. (OTC BB:LGYH.OB - News) announced that it has successfully applied its green semiconductor wafer drying technology to high volume solar cell production and proven its ability to drastically cut manufacturing times for suppliers.

Global Semi Sales up 5.5% for August

Despite the economy worsening by the day, one sector that has managed to maintain modest growth is the semiconductor industry.

According to a recent press release issued by the Semiconductor Industry Association (SIA), worldwide sales of semiconductors grew by 5.5% in August on an annualized year-over-year basis to $22.7 billion.

The release goes on to state that the aforementioned growth was largely driven by solid demand for personal computers and cellular handsets.

As has been the case for some time now, downward price pressure on DRAMs and NAND flash memories remains the primary factor hindering overall industry revenue growth. Excluding the memory market, the semiconductor industry experienced a 11.4% year-over-year sales increase during August.

Moreover, in a sign that the industry is hanging tough regardless of turbulent economic conditions, year-to-date sales were up 4.5% at the end of the month. For the record, Semi sales grew by just 3.4% in '07.

Strength in the semiconductor space provides a compelling opportunity for Legacy Holdings Inc. (LGYH.OB), an emerging providing of wafer cleaning technologies.

LGYH.ob delivered 1211% sequential quarterly revenue growth during Q2 ($17K to $223K) and has investors anxiously awaiting the upcoming third quarter filing. The company announced repeat product installations with Tyco (NYSE: TYC) over the the summer and has forged deep relationships with other industry leaders including Micrel (Nasdaq: MCRL). In light of these achievements, LGYH.ob appears to be progressing towards its goal of becoming the leading U.S. wet process supplier by 2011.

We'll be on the lookout for the upcoming quarterly filing over the next few weeks. Hopefully for LGYH.ob, a combination of positive industry trends and inroads with leaders in the semiconductor space will continue to push the company in the right direction. From our perspective, LGYH.ob's technology presents a very attractive value proposition to its core markets and this is becoming increasingly evident with each new contract win and financial report. In closing, we expect more great things from the company in the future and look forward to updating you on corporate developments as they transpire.

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