TV IC Market Experiences Seasonal Decline

TV IC Market Experiences Seasonal Decline to 30.8 Million Units Shipped in Q1’09, Down 4.3% Q/Q, But Up 11% Y/Y; Industry Consolidation Continues

AUSTIN, TEXAS — DisplaySearch’s latest research indicates that the TV IC shipments declined seasonally to 30.8 million units for flat panel TVs in Q1’09, according to its Quarterly TV Electronics Report. Shipments were down by 4.3% Q/Q, but up 11% Y/Y. This is in line with seasonal trends and with the maturing of the flat panel TV market as developed markets have completed the switch from CRT TVs.

“Concerns over the economic outlook caused set-makers to slash inventory in 2008,” noted Paul Gray, Director of Europe TV Market Research. “Despite this, sales in developed regions have remained resilient, and there is some inventory re-build to support ongoing market levels.”

DisplaySearch’s results also indicate that continued industry consolidation has resulted in an increased share for top-tier IC vendors. At the same time, the real expansion of the flat panel TV market is now in emerging regions and in price-fighter models in mature markets. Specifically, Micronas completed the sale of its FRC, Audio and Demod product lines to Trident, with the remainder of its consumer business (including the TV SoC business) ceasing by the end of the year. In addition, NEC and Renesas announced an intention to merge, and AMD’s TV IC business completed its first quarter as part of Broadcom.

Table 1: Top TV System IC Vendors

Vendor     Q4'08 Rank  Q1'09 Rank
--------   ----------  ----------
Mediatek            1           1
MStar               2           2
Samsung             3           3
Broadcom            6           4
Zoran               4           5

Source: Q1'09 Quarterly TV Electronics Report

Other highlights from the most recent Quarterly TV Electronics Report include

• Mediatek regained some share as seasonal emphasis returned to the North American market and TV set inventories were rebuilt after a cautious end to 2008.
• growing rapidly, propelled by a shipment surge from LGE and also showing strength in China
• Samsung also gained share as their in-house customer continues to grow in the TV market. The depreciating Korean won has also made them more competitive against merchant ICs priced in US dollars.

DisplaySearch Quarterly TV Electronics Report covers other key industry topics such as analysis of the competitive dynamics in the industry; expanded share analysis, including estimates of splits by region and broadcast standard; feature roadmap outline for TV IC vendors; examination of technical trends in TV system-on-chip (SoC) and in LCD panel drivers, which will affect TV ICs in future; and panel makers’ roadmaps. For more information, contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, email contact@displaysearch.com, or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.