Growing consumer appetite for flat panels drives TV IC revenue

December 4, 2007

In the third quarter of 2007, video processor, MPEG video processor and unit shipments grew 28 percent compared to the same quarter last year and 22 percent year over year, according to research firm DisplaySearch.

The growth reflects the strong adoption among consumers of digital televisions as they replace their analog sets. Overall revenue from the sale of video processors increased 16 percent quarter over quarter.

The need on the part of TV retailers to build sufficient inventories to meet anticipated consumer demand resulting from their acceptance of DTV and a desire to upgrade to newer flat-panel LCD and plasma display technologies was responsible for exceptionally strong revenue growth among manufacturers of TV ICs, said Vish Nayak, VP of display electronics at DisplaySearch.

The overall outlook for DTV IC shipments in the second half of 2007 is “very positive,” with an aggressive shift continuing toward flat-panel TV purchases, as consumers continue moving ahead with plans to replace legacy analog sets with DTVs during the peak holiday and football seasons, Nayak said.

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