EL SEGUNDO, CA – Because of explosive growth in consumer demand for LCD digital TVs, semiconductors used in such TV sets are expected to boom, with global revenue set to nearly quadruple from 2006 to 2011, iSuppli Corp. predicts.
 
The worldwide market for semiconductors used in LCD TVs is expected to rise to $7.4 billion in 2011, up about 73% from 2006. By 2011, LCD TV chips will account for 84.2% of total DTV chip revenue, up from 54.3% in 2006, according to the firm.
 
Chip shipments for LCD TVs will rise to 178 million units in 2011, up about 46% from 2006. LCD TV chips will account for 77.4% of the DTV semiconductor shipments in 2011, up from 55.5% in 2006, says iSuppli.
 
These numbers account for all the chips on DTVs’ and LCD TVs’ A/V boards, which include display processors, input/output chips, audio, memory, and other devices.
 
In contrast, the overall global DTV chip market, which is comprised of LCD TVs, plasma sets, CRTs and rear-projection televisions, is expected to rise at a slower rate, increasing to 230 million units by 2011, up about 66% from 2006, reports iSuppli.
 
This forecast indicates that the LCD TV segment has become the driving force behind the global DTV semiconductor business, propelling revenue growth and generating the most attractive opportunities for television chip suppliers, the company says.
 
The rise of DTV and LCD TV is being driven by multiple factors, including the migration to digital sources for television content and mandated digital broadcasts in most of the world’s countries during the next 10 years. Other factors include the emergence of new displays with attractive form factors, like LCDs and plasma sets, and – most important – because of the rapidly falling prices of large-sized flat-panel TVs. In 2008, flat-panel TVs will account for more than 50% of the total global television market, says iSuppli.
 
Semiconductor revenue for A/V boards used in DTV sets will grow to $8.8 billion in 2011, rising at a CAGR of 19.4% from 2006. This growth in revenue will occur despite the continuous drops in average selling prices for semiconductors used in DTVs. However, the price decline will be tempered by the continuing trend to integrate more functions into DTV display processors, the firm concludes.

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