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US move to digital TV boosts Taiwanese firms

By Elizabeth Tchii
STAFF REPORTER
Tuesday, Aug 12, 2008, Page 12

The US switch to digital TV is driving the growth of Taiwan’s digital terrestrial set top box (STB) industry, a recent report by the Market Intelligence Center (MIC, 資策會資訊市場情報中心) said.

The US Advanced Television Systems Committee’s (ATSC) demand for converter boxes is boosting Taiwan’s shipment volume to an estimated 1.27 million units in the first half of the year, up 56 percent from the same time last year, said MIC, an information and communications technology (ICT) industry research institute based in Taipei

This overwhelming demand translates to a shipment value of US$42.80 million or an increase of 47.6 percent over the same period last year.

Taiwanese firms directly benefiting from the US shift are Good Mind Industries Company (格得電子), Zinwell Corp (兆赫電子), Cal-Comp Electronics and Communications Co (泰金寶), Skardin Industrial Corp (致振企業) and Prime Electronics (百一電子).

With the US subprime debacle and the ensuing global economic downturn, many consumer electronics firms are facing a slowdown in general consumer demand. However, worldwide digital terrestrial STB shipment is growing, primarily due to the US government’s aggressive pushing for the digital switchover.

This year and next, the US National Telecommunications and Information Administration (NTIA) is offering US$40 coupons to consumers to subsidize their purchases of ATSC converter boxes and help speed up the digital transfer.

The ATSC converter box in the US has become one of the main drivers for digital terrestrial TV STB shipment.

The DVB-T (Digital Video Broadcasting-Terrestrial) market “has really slowed down” in other regions, said Chris Hung (洪春暉), a senior MIC analyst.

As some Taiwanese makers continue to increase shipments for the US ATSC converter box program, the Taiwanese digital terrestrial STB industry’s shipment volume is expected to reach 3.59 million units in the second half of this year, compared to 1.43 million units for the same period last year.

Full-year shipment is forecasted to reach 4.86 million units, double the amount shipped last year.

MIC sees future growth opportunities for the industry in emerging markets such as Brazil, Mexico, and Argentina, Eastern Europe, Russia and China.

“As the TV population in these emerging markets grows, so will the demand for large-scaled digital STB in the near future. When markets mature in developed countries, emerging markets will become new sources of growth for the worldwide STB market. These emerging markets will thus be a major focus for STB makers,” Hung said.
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