Advanced TV Semiconductors A Report on the TV Chip Industry For all TV Platforms by Henry Choy Senior Analyst

Jon Peddie Research 4 Saint Gabrielle Court Tiburon, CA 94920 415.435.9368

Advanced TV devices Second edition

© Copyright Jon Peddie Research 2008. All rights reserved. Reproduction in whole or in part is prohibited without written permission from Jon Peddie Research. This report is the property of Jon Peddie Research (JPR) and is made available to a restricted number of clients only upon these terms and conditions. The contents of this report represent the interpretation and analysis of statistics and information that is either generally available to the public or released by responsible agencies or individuals. The information contained in this report is believed to be reliable but is not guaranteed as to its accuracy or completeness. Jon Peddie Research reserves all rights herein. Reproduction or disclosure in whole or in part to parties other than the Jon Peddie Research client who is the original subscriber to this report is permitted only with the written and express consent of Jon Peddie Research. This report shall be treated at all times as a confidential and proprietary document for internal use only. Jon Peddie Research reserves the right to cancel your subscription or contract in full if its information is copied or distributed to other divisions of the subscribing company without the written approval of Jon Peddie Research. This report contains a “review” of various products. It is not an endorsement or attempt to sell any products. Under the rules of the “Fair Use Doctrine,” JPR assumes no responsibility for the correct or incorrect usage of any trademarks or service marks.

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Advanced TV Semiconductors 2nd edition

Table of Contents INTRODUCTION ...........................................................................................................................1  ABOUT THIS REPORT..................................................................................................................3  What you won’t find in this report...............................................................................................3  METHODOLOGY ..........................................................................................................................4  Primary research for this report ...................................................................................................4  Secondary research for this report ...............................................................................................4  EXECUTIVE SUMMARY .............................................................................................................5  DEFINITIONS .................................................................................................................................8  SYSTEM BLOCKS IN THE MODERN TV ..................................................................................9  Tuner and demodulation ..............................................................................................................9  Analog-to-digital converter..........................................................................................................9  Comb filtering and video decoding ...........................................................................................10  De-interlacing ............................................................................................................................10  Scaler and video processing .......................................................................................................10  CURRENT MARKET ...................................................................................................................11  The huge opportunity .................................................................................................................11  New displays need more processing ..........................................................................................13  Worldwide digital conversion....................................................................................................13  How does conversion affect semiconductor companies? ..........................................................16  United States ..........................................................................................................................16  Europe ....................................................................................................................................16  China ......................................................................................................................................17  Digital Set Top Boxes for US Rollover .....................................................................................17  The sun sets on analog TV .....................................................................................................17  Crowded and complex landscape: Challenges and opportunities ..............................................19  Winners and losers .....................................................................................................................22  TV trends ...................................................................................................................................23  How will new technologies get integrated into the TV?........................................................24  We can, so we will .................................................................................................................24  Networked TV’s? ...................................................................................................................25  Consumer return factor ..........................................................................................................26  100/120Hz LCD TV’s............................................................................................................26  Conclusion .............................................................................................................................27  What to expect in future semiconductors ..................................................................................27  Better video quality ................................................................................................................27  Y/C color separation ..............................................................................................................28  2D comb filtering ...................................................................................................................28  3D adaptive motion de-interlacing.........................................................................................28  Frame Rate Control ................................................................................................................29  Advanced decoding ................................................................................................................30  New connections ....................................................................................................................31  Summary ................................................................................................................................31  Page i Copyright 2001 to 2008 Jon Peddie Research

Advanced TV Semiconductors 2nd edition Semiconductor Positions................................................................................................................32  Video-processing companies .....................................................................................................32  Challenges ..............................................................................................................................32  MPEG companies ......................................................................................................................33  Challenges ..............................................................................................................................33  Digital decode companies ..........................................................................................................33  Challenges ..............................................................................................................................33  Integration trends .......................................................................................................................34  Summary ....................................................................................................................................34  Semiconductor Companies and Products.......................................................................................35  AMD ..........................................................................................................................................36  Xilleon 244.............................................................................................................................36  Xilleon Panel Processor .........................................................................................................36  Broadcom ...................................................................................................................................37  BCM 3563 ..............................................................................................................................38  Genesis .......................................................................................................................................38  FLI106XXX ...........................................................................................................................39  FLI30X36 ...............................................................................................................................39  Mediatek ....................................................................................................................................40  MT8226..................................................................................................................................40  Micronas ....................................................................................................................................40  VCT-P Family ........................................................................................................................41  FRC Family ............................................................................................................................41  NXP ...........................................................................................................................................42  NXP’s TV52X family of TV Designs ...................................................................................42  Trident Microsystems ................................................................................................................43  SVP-UX/WX .........................................................................................................................43  Hidtv Pro CX/FX ...................................................................................................................44  Zoran ..........................................................................................................................................44  SupraHD 780/770 IDP processor...........................................................................................44  Summary ....................................................................................................................................45  ATV Semiconductor Market Forecast ...........................................................................................46  Conclusion .................................................................................................................................48  Forecast by Broadcast (Analog vs. Digital) ...................................................................................49  Forecast by Region ........................................................................................................................50  North America ...........................................................................................................................50  Digital vs. Analog Forecast....................................................................................................50  Segmentation Forecast ...........................................................................................................51  European Union .........................................................................................................................54  Digital vs. Analog Forecast....................................................................................................54  Segmentation Forecast ...........................................................................................................56  China ..........................................................................................................................................58  Digital vs. Analog Forecast....................................................................................................59  Segmentation Forecast ...........................................................................................................59  Japan ..........................................................................................................................................61  Page ii Copyright 2001 to 2008 Jon Peddie Research

Advanced TV Semiconductors 2nd edition Digital vs. Analog Forecast....................................................................................................61  Segmentation Forecast ...........................................................................................................62  ATV Semiconductor Market Share ...........................................................................................65  Data Tables ................................................................................................................................66  Conclusion .............................................................................................................................71  Appendix ..........................................................................................................................................1  TV Broadcast Standards ..............................................................................................................1  Analog Standards .....................................................................................................................1  NTSC .......................................................................................................................... 1  PAL ............................................................................................................................. 1  SECAM (Sequentiel Couleur) .................................................................................... 1  DTV standards .........................................................................................................................2  Interlaced and Progressive formats ..........................................................................................5  Resolution standards ................................................................................................................5  Analog resolution standards............................................................................................. 5  Digital TV resolution standards ....................................................................................... 6  Modulation techniques .............................................................................................................7  VSB ..........................................................................................................................................7  8-VSB ......................................................................................................................................7  QAM ........................................................................................................................................7  COFDM ...................................................................................................................................7  YUV color space ......................................................................................................................7 

Table of Figures Figure 1: Worldwide ATV Semiconductor Forecast and Shipments ................................................ 7  Figure 2: Typical TV Pipeline (Source: Jon Peddie Research) ......................................................... 9  Figure 3: ATV Semiconductor Revenue by Region (Source: Jon Peddie Research) ...................... 12  Figure 4: Worldwide Digital TV broadcast market (Source: Jon Peddie Research) ....................... 13  Figure 5: An ATSC digital to NTSC converter system (Source Zoran) .......................................... 18  Figure 6: Zillions of TVs and nothing to watch (Courtesy Louie Psihoyos) ................................... 20  Figure 7: HDTV system board (Source Sharp)................................................................................ 21  Figure 8: The insides of a 37-inch LCD TV – how can they be sold for so little money with all those parts? (Source Jon Peddie Research)...................................................................................... 22  Figure 9: IP route for TV delivery (source Teracue) ....................................................................... 25  Figure 10: 100Hz TVs will deploy in Europe first, then 120Hz in the US (source Mascom)......... 26  Figure 11: 1931 xyY color space model .......................................................................................... 28  Figure 12: Frame rate control is dependent to a certain extent on the speed of the LCD................ 30  Figure 13: Typical MPEG2 decode ................................................................................................. 31  Figure 14: ATV Chassis Market Share (Source: Jon Peddie Research) .......................................... 35  Figure 15: Samsung’s new LVDS panel controller (Source Samsung) ........................................... 37  Figure 16 BCM 3563 System Block Diagram (Source: Broadcom) ............................................... 38  Figure 17: Genesis’ FLI106xx “Douglas” panel controller (Source Genesis) ................................ 39  Figure 18: FLI30336 System Block Diagram (Source: Genesis) .................................................... 40 

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Advanced TV Semiconductors 2nd edition Figure 19: 120 Hz 1080p TV application with VCT-Premium and the FRC 9wxyM (Source: Micronas) ......................................................................................................................................... 41  Figure 20: PNX522 System Block Diagram (Source: Philips) ........................................................ 43  Figure 21: SupraHD 780 System Block Diagram (Source: Zoran) ................................................. 45  Figure 22: Worldwide ATV Semiconductor Revenue Shipment and Forecast (Source: Jon Peddie Research).......................................................................................................................................... 46  Figure 23: Worldwide ATV Semiconductor Unit Forecast (Source: Jon Peddie Research) ........... 47  Figure 24: Worldwide ATV Semiconductor ASP Forecast (Source: Jon Peddie Research)........... 48  Figure 25: Worldwide forecast for digital and analog tuner TV’s................................................... 49  Figure 26: North America forecast for digital and analog tuner TV’s (Source: Jon Peddie Research).......................................................................................................................................... 51  Figure 27: North America unit shipment forecast by segment (Source: Jon Peddie Research) ...... 52  Figure 28: North America revenue forecast by segment (Source: Jon Peddie Research) ............... 53  Figure 29: North America ASP forecast Source: Jon Peddie Research........................................... 54  Figure 30: European Union forecast for digital and analog tuner TV’s .......................................... 55  Figure 31: European Union shipment forecast by segmentation ..................................................... 56  Figure 32: European Union revenue forecast by segmentation Source: Jon Peddie Research ........ 57  Figure 33: European Union ASP forecast (Source: Jon Peddie Research) ...................................... 58  Figure 34: China forecast for digital and analog tuner TV’s (Source: Jon Peddie Research) ......... 59  Figure 35: China Revenue forecast by segment (Source: Jon Peddie Research) ............................ 60  Figure 36: China ASP forecast (Source: Jon Peddie Research) ...................................................... 61  Figure 37: Japan forecast for digital and analog tuner TV’s (Source: Jon Peddie Research) ......... 62  Figure 38: Japan unit shipment forecast by segment (Source: Jon Peddie Research) ..................... 63  Figure 39: Japan revenue forecast by segment (Source: Jon Peddie Research) .............................. 64  Figure 40: Japan ASP forecast (Source: Jon Peddie Research) ....................................................... 65  Figure 41: TV Semiconductor Market Share (Source: Jon Peddie Research) ................................. 66  Figure 42: Worldwide Map of Digital TV standards ......................................................................... 2  Figure 43: Wide screen resolutions (Courtesy Computer Desktop Encyclopedia) ........................... 6 

Table of Tables Table 1: Worldwide Digital Conversion Status (Source: Jon Peddie Research) ............................. 15  Table 2: Worldwide Forecast for Digital and Terrestrial Broadcast TV’s in millions of units (Source: Jon Peddie Research)......................................................................................................... 66  Table 3: Worldwide Shipment Forecast by Product Segment (Source: Jon Peddie Research) ....... 67  Table 4: Worldwide ASP Forecast by Product Segment (Source: Jon Peddie Research) ............... 67  Table 5: Worldwide Revenue Forecast by Product Segment (Source: Jon Peddie Research) ........ 67  Table 6: Worldwide ATV Shipment, ASP, and Revenue Forecast (Source: Jon Peddie Research) .......................................................................................................................................................... 67  Table 7: North America Forecast for Digital and Terrestrial Broadcast TV’s in millions of units (Source: Jon Peddie Research)......................................................................................................... 67  Table 8: North America Shipment Forecast by Product Segment (Source: Jon Peddie Table) ...... 67  Table 9: North America ASP Forecast by Product Segment (Source: Jon Peddie Research) ......... 67  Table 10: North America Revenue Forecast by Product Segment (Source: Jon Peddie Research) 68  Table 11: North America ATV Shipment, ASP, and Revenue Forecast ......................................... 68 

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Advanced TV Semiconductors 2nd edition Table 12: European Union Forecast for Digital and Terrestrial Broadcast TV’s in millions of units (Source: Jon Peddie Research)......................................................................................................... 68  Table 13: European Union Shipment Forecast by Product Segment ............................................... 68  Table 14: European Union ASP Forecast by Product Segment ( Source: Jon Peddie Research).... 68  Table 15: European Union Revenue Forecast by Product Segment $M (Source: Jon Peddie Research).......................................................................................................................................... 69  Table 16: European Union ATV Shipment, ASP, and Revenue Forecast (Source: Jon Peddie Research).......................................................................................................................................... 69  Table 17: Japan Forecast for Digital and Terrestrial Broadcast TV’s in millions (Source: Jon Peddie Research).............................................................................................................................. 69  Table 18: Japan Shipment Forecast by Product Segment (Source: Jon Peddie Research) .............. 69  Table 19: Japan ASP Forecast by Product Segment (Source: Jon Peddie Research) ...................... 69  Table 20: Japan Revenue Forecast by Product Segment $M (Source: Jon Peddie Research) ......... 69  Table 21: Japan ATV Shipment, ASP, and Revenue Forecast (Source: Jon Peddie Research) ...... 70  Table 22: Asia Forecast for Digital and Terrestrial Broadcast TV’s in millions of units (Source: Peddie Research).............................................................................................................................. 70  Table 23: Asia Shipment Forecast by Product Segment (Source: Jon Peddie Research)................ 70  Table 24: Asia ASP Forecast by Product Segment (Source: Jon Peddie Research)........................ 70  Table 25: Asia Revenue Forecast by Product Segment (Source: Jon Peddie Research) ................. 70  Table 26: Asia ATV Shipment, ASP, and Revenue Forecast (Source: Jon Peddie Research) ........ 70  Table 27: China Forecast for Digital and Terrestrial Broadcast TV’s in millions of units (Source: Jon Peddie Research) ....................................................................................................................... 70  Table 28: China Shipment Forecast by Product Segment (Source: Jon Peddie Research) ............. 71  Table 29: China ASP Forecast by Product Segment (Source: Jon Peddie Research) ..................... 71  Table 30: China Revenue Forecast by Product Segment (Source: Jon Peddie Research) ............... 71  Table 31: China ATV Shipment, ASP, and Revenue Forecast (Source: Jon Peddie Research)...... 71  Table 32: 2007 ATV Semiconductor Market share Data (Source: Jon Peddie Research) .............. 71  Table 33: Analog TV Terrestrial Standards ....................................................................................... 1  Table 34: Digital and analog TV standards ....................................................................................... 3  Table 35: TV Broadcast Formats ....................................................................................................... 4 

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