Digital set-top box, digital TV to spur CE semiconductor growth, says IDC

A new study from IDC shows significant growth in the digital set-top box and digital TV semiconductor market over the next few years.

The research, “Worldwide Digital Set-top Box and Digital TV Semiconductor 2004-2008 Forecast and Analysis,” found a $3.1 billion market for the devices in 2003 and projected 25 percent compounded annual growth through 2008, when the market will be valued at $9.3 billion.

According to IDC, the rapid transition to higher-end designs supporting advanced functions like digital video recording and high definition as well as the broader transition to digital television will fuel the anticipated growth.

The study identified several trends, including:

  • Integrated DVRs boost opportunity for set-top box chipmakers;
  • Digital terrestrial and cable tuners kick start DTV market;
  • HDTV requires more advanced chip technology;
  • Competitive pressures force Japanese DTV OEMs to consider merchant silicon.

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