AUSTIN, TEXAS, December 30, 2008 - With the Flat Panel TV market experiencing consolidation, the turmoil is being repeated in the TV semiconductor sector. Some TV set makers believe competitiveness lies in vertically integrated with in-house IC suppliers, while others are aiming to source the ‘best of breed’ on the open market. At the same time, technology demands in video processing and IC manufacturing race ahead. With the internet entering the TV space for the first time, IC vendors will have to master networking and wireless technologies as well as making ever-better pictures. These issues, among others, are examined in the DisplaySearch Q4’08 Quarterly TV Electronics Report.
In Q3, the TV IC market grew 14.8% Q/Q with 34,510 units shipped into Flat Panel TVs in Q3’08, but that was only up 11.1% Y/Y as developed markets have completed their transition to Flat Panel TV. Furthermore, emerging markets have not yet started to enter the rapid stage of migration to flat technologies and digital broadcast, so there appears to be a pause in growth. Concerns over the economic outlook have caused set makers to exhibit caution, and inventory is expected to be lower than previous years, further dampening IC sales.
Figure 1: Top Five TV System IC Vendors
Vendor Q3’08 Rank Q2’08 Rank Mediatek 1 1 MStar 2 3 Samsung 3 9 Trident 4 2 Zoran 5 5
Source: Q4’08 Quarterly TV Electronics Report
Mediatek remained the number one IC vendor for TVs, but lost market share slightly, as a result of Samsung’s in-house LSI entering the market and displacing Mediatek’s stake in mid-range Samsung TVs. MStar share is growing rapidly, from 9.3% to 13.3% in Q3’08, propelled by strong positions in low-end sets from Samsung and LGE. MStar is also the market leader in China, especially for domestic LCD TV consumption. Samsung is now estimated to be #3 in TV ICs, at 9.9%, based upon the large shipments of Samsung TVs. Samsung only sells to its in-house customers.
