Zacks_Analysts' Blog : Atmel Powers Samsung's Tablet - Analyst Blog

Atmel Corporation (ATML) recently announced that Samsung has selected – Atmel maXTouch mXT1386, one of the company’s touch screen solutions, to power its flagship model Galaxy Tab 10.1.

Atmel maXTouch continues to drive a number of touch devices from smartphones to 7-inch tablets and is now encouraged to power one of the hottest Android tablets in the market. Management stated that the new tablet will give consumers a phenomenal touch experience.

With the acquisition of Quantum in 2008, Atmel launched numerous new products into the fast-growing capacitive touch sensing market. Management estimates that capacitive sensing products will rapidly penetrate the overall touch sensing market, which in turn, is expected to grow from over $1 billion in 2007 to more than $3 billion in 2011.

Touch-sensing technology is the fastest growing area in Atmel's microcontroller business and is expected to remain a major growth driver in the coming quarters. As smartphones become ubiquitous in use, touch sensing products will continue to gain traction.

Moreover, Atmel has strong ties with Nokia (NOK), Motorola (MSI), Sharp, Toshiba, HTC and Samsung.  Atmel expects Asia to be its fastest growing region, driven by the growth of local electronics companies in Asia and the continued outsourcing of production by large North American and European OEMs, particularly by microcontroller customers.

As expected by management, Atmel continues to see the touch-sensing market expanding rapidly beyond smartphones into new applications such as tablets, netbooks, cameras, printers, automotive and other areas.

Atmel Corporation’s top-line growth continues to accelerate, driven by solid growth in 8-bit and 32-bit micron rollers and touch sensing products. Atmel is currently focusing on its core Microcontroller business and is halting development in non-core areas with the aim of targeting high-growth and high-margin businesses.