Global Positioning System (GPS) IC demand is on the rise. Chipset pricing has dropped dramatically, and has opened up more opportunity in the handset market, and in the maturing Personal Navigation Device (PND) and automotive spaces.

The GPS application utilizes a system of U.S satellites put in place years ago, intended for military use. On the ground we use a receiver, which collects the coordinates sent by the satellite. Receiver devices communicate with these satellites and then determine the location of the receiver, calculated by latitude and longitude, and sometimes altitude. With continuous communication with the satellites, the receiver has the capability of tracking data over an elapsed period of time, enabling other calculations including, speed, distance, and estimated time of arrival to a predetermined point.

Adoption rate for GPS technology has been hindered by cost, but now that chipset pricing has dropped, more phones and cars are including GPS, and the technology is growing in consumer popularity. Application shipments for electronics capable of GPS reached 126 million units in 2007. Growing at a compound annual growth rate of 20 percent, shipments could reach nearly half a billion units by 2013.