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Microsemi Corporation (MSCC - Analyst Report), an original equipment manufacturer (OEM) of a broad range of high-reliability and analog/mixed signal integrated circuits, launched its new ultra-low power (ULP) radio frequency (RF) transceiver, ZL70250, for short-range wireless applications.

Microsemi’s new RF transceiver consumes less power. This enhances the battery life, which is critical for applications in energy-saving and battery-powered wireless sensor networks. This will also help the designing of wireless sensor applications.

Short-range wireless applications are required in environmental monitoring, industrial building automation and security, access control, structural health and tank level monitoring, among others. Previously, AA batteries were used to run these power-hungry applications, which were not only rather expensive but also had a low shelf life.

In the modern era, power consumption is a major issue. Natural resources such as coal and crude oil are all depleting at an accelerated rate. Hence, power saving is the need of the hour and the requirement for power management devices is soaring. 

Microsemi’s ZL70250 addresses the need for power efficiency in short-range wireless applications, which is critical for day-to-day operations in modern industries.

According to research conducted by GBI Research, sales of power management integrated circuits (ICs) may grow at a CAGR of 6.7% to reach $22.7 billion by 2016. Microsemi has a range of offerings in the space and may therefore be able to tap this opportunity.

Microsemi’s revenue in the third quarter of fiscal 2012 was $259.2 million, up 4.0% sequentially and 19.6% year over year. The communications market was the largest contributor, making up 31.0% of sales.

The defense & security market generated 28.0% of sales and aerospace generated 21.0%. The defense, aerospace and medical markets largely use Microsemi’s high-reliability chips, while the other markets use its analog/mixed signal products.

Microsemi Corporation, which competes with Maxim Integrated Products (MXIM - Analyst Report), Linear Technology (LLTC - Analyst Report), Texas Instruments (TXN - Analyst Report), ARM Holdings Plc. (ARMH - Snapshot Report) and On Semiconductor (ONNN - Analyst Report), has a Zacks #3 Rank, implying a short-term Hold rating.

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