The way the US chip industry will go is the same as all the other industries - make your money upfront, because when the Chinese come into the game you won't be able to compete. Period. It doesn't matter the product, when you're playing against an opponent who has stacked the deck against you, you will lose.
Competing on price or technology is depending on which market segment the company is intended to enter. Price has always been the primary driver in mid and low end market. DTV and Blu-ray is quite a brutal market. The price of decent quality 50" DTV can be as low as $800. TV technology has been evolved so much. Named brands are struggling to differentiate themselves in the market.
It is a brutal market, it is exteremely hard for chip suppliers to make money if the setmakers themselves are unable to differentiate and are competing on price not on technology. Recent misses include 3D TV and the current wave of connectivity also fails to excite.
The shakeout started years ago with Genesis, Micronas and NXP getting out(or being acquired), Pixelworks is hanging on a string; Zoran getting out and now Broadcom. Who is next???
How dare I forget that? Thanks for pointing out the Moto vs. Nxtwave second-gen VSB chip race. Those were truly great days when the American chip vendors competed fiercely for the then emerging U.S. digital TV market.
Your perspective on the impact on the mobile DTV is an interesting one.
I need to check that out.
The only reason Broadcom purchased the ATI DTV group was to finally get into Sony TVs. Sony hates Broadcom (like everyone else)and played dumb when Broadcom was dancing with ATI. Right after the purchase went down the Broadcom E-Staff went to SONY to close the deal and Sony told them to go pound sand. Sony gave Broadcom the big F U.
SONY rules and made me a big fan of Sony product ever since.
Broadcom, you can't buy your way into a market made of loyalty and friendships.
Broadcom how does it feel to get bully-ed out of a market? hahaha
One small correction Junko -- Nxtwave Communications did not develop "the first" VSB demodulation chips. Way back at the peak of the ATSC modulation wars, Nxtwave & Motorola announced 2nd gen 8-VSB demodulator chips within days of each other. Second gen, not first gen.
The news of Broadcom's exit from this business is kind of sad. Although they are in so many different markets these days, the foundation on which they started the company was their expertise in modulation and demodulation, starting with their first QAM chips for the cable TV industry. It only seemed natural that they would become the experts in off-air DTV chips too, and indeed they did -- apparently there just wasn't much money to be made in that business.
I hope that the ex-ATI and ex-Nxtwave engineers that BRCM just laid off quickly land on their feet -- a lot of great talent there.
Meanwhile, what impact if any will Broadcom's DTV exit have on the nacent mobile DTV business? The ink is barely dry on the ATSC mobile DTV standard, and here we have the company whose name literally means broadband communications quitting the business.