MStar Semiconductor Inc (開曼晨星半導體), which commands about 50 percent of the world’s LCD TV chip market, expects to gain more market share, benefiting from the uptake of smart (Internet-enabled) TVs, with lower-priced models on offer.
“We expect customers to increase volume [in orders] as lower-priced smart TV is becoming a trend this year, making 2012 the year of smart TV,” company chairman Wayne Liang (梁公偉) told reporters during a luncheon yesterday.
He said the European debt crisis has to some extent helped to drive TV prices down as TV makers opt to launch TV sets with affordable prices to entice reluctant consumers to spend.
“We are also seeing orders for Japanese [TV brands] catch up with those from China and South Korea, making our customer portfolio more extensive,” Liang said.
Earlier this week, MStar announced that it had licensed graphics processing unit technology used in smart TV applications from ARM Holdings PLC, following the announcement last month that it was offering smart TV solutions supported by Intel Corp’s technology.
Additionally, MStar might gain more market share from current 50 percent after rivals announced they would exit the TV chip market last year, Liang said.
He did not provide detailed forecasts,but he said it would "not be unlikely for MStar to expand market share to 70 percent, if only two companies, or three are left on the market."
Trident Microsystems Inc, Zoran Corp, Broadcomm Corp and Intel Corp announced their withdrawal from the TV controller chip market last year.
“As competition intensifies, only companies with big enough scale can survive,” Liang said.