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alan.varghese
The 30% growth in TV chips projected for 2010 is even more dramatic than global ...
Cowan LRA Model
Peter - according to iSuppli's most recently published (May 2010) sales growth ...
TV chip market to rise 30% in 2010, says iSuppli
Peter Clarke
7/26/2010 10:18 AM EDT
LONDON — The market for chips for inclusion in TVs is set to rise to $12.1 billion in 2010, up 30 percent from $9.3 billion achieved in 2009, according to analysis company iSupply Corp.
The increasing semiconductor content, for driving and backlighting liquid crystal display televisions is the main cause of the strong growth, according to Randy Lawson, manager and principal analyst for display and consumer electronics at iSuppli (El Segundo, Calif.).
Chip shipments will hold steady at the low 10,000 level for plasma, continue on a path of irreversible decline for CRT and be all but nil by 2012 for rear-projection types, Lawson said.
LED backlighting is replacing the previous technology, cold cathode fluorescent lamps, as it offers higher image contrast, lower power consumption and thinner panel profile. LED-related semiconductor revenue will enjoy a corresponding surge in growth, rising from just $400 million in 2009 to more than $4 billion by 2014. Shipments of LED-backlit TVs are projected to hit 25 million units in 2010; five times the level of 2009 shipments.
In addition to LED backlighting, a number of advanced television features will drive the TV semiconductor space in the years to come, Lawson said. These features include full High-Definition (HD) 1080 progressive scan resolution, Internet access, wireless connectivity and frame-rate conversion to support 120Hz/240Hz playback, all of which will require the use of greater quantities of advanced video processor chips.
OEM and consumer interest in 3-D-enabled models will spur faster penetration of 240-Hz support in LCD-TVs, due to the image crosstalk issue of current 3-D solutions. And current initiatives by LCD-TV manufacturers and panel suppliers to incorporate higher frame rates, such as 120-Hz and 240-Hz, will subsume onto the overall bill of materials the new additional functionality required by 3-D technology.
"While 3-D heralds a new era of advanced TV viewing for consumers, the technology itself will not significantly impact TV semiconductor revenue in general, or the market revenue for video processors in particular," said.
The revenue for power ICs is expected to increase to $1.8 billion in 2010, up 38.5 percent from $1.3 billion last year, iSuppli data show, with growth to continue until at least 2012, when revenue hits $2.5 billion. This represents one of the hottest growth segments of the semiconductor industry. A dip to $2.4 billion then is projected in 2013, after which revenue levels pick up again and climb in 2014 to $2.7 billion.
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Tunrayo
7/26/2010 4:32 PM EDT
This news of growth is great for chip-manufacturing companies. Almost every device we use today has some embedded chip to make it smarter. Besides, new applications such as the LED technology in TVs and displays keep sustaining growth in demand for chips.
Solar technology is another industry that should help sustain demand for computer chips. I think chip makers are in for a long good ride.
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Cowan LRA Model
7/27/2010 1:16 AM EDT
Peter - according to iSuppli's most recently published (May 2010) sales growth forecast estimate (that is, 30.6%) for the total 2010 chip sales market growth, the TV chip market sales growth is growing at pretty much the same rate as the overall industry. Consequently there is nothing "spectacular" about the forecasted number (30%) iSuppli is prognosticating for the 2010 TV chip sales market growth.
Mike C.
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alan.varghese
7/27/2010 4:49 PM EDT
The 30% growth in TV chips projected for 2010 is even more dramatic than global semiconductor growth. Though iSuppli projects a 30.6% growth in global semiconductors in 2010, much of this semiconductor growth has to do with replenishing inventories hit hard in 2009; real growth when calculated from 2008 revenues, only amounts to 15.4%.
In contrast, TV chip revenue only amounted to about $7.95 billion in 2008; if the market hits $12.1 billion, then real growth from 2008 amounts to a whopping 52.2%. This means that growth in the TV segment is not just caused by recession rebuilding, but by strong end-consumer demand.
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