Multimedia Devices

The access to MEMS microphone original design will be more and more important in the future and we can expect both strong R&D projects and also M&A to get access to MEMS design and manufacturing capabilities. This report offers a more in-depth discussion on this scope and key strategic evolution of the industry.

Rising popularity of smartphones and tablet computers generated by Apple Computer Inc. and HTC Corp. is driving investments in their supply chains in Taiwan, with expected investments in the smartphone supply chain to total approximately NT$10 billion.

Master control switchers are an indispensable part of video and television broadcast which combines programming feeds from disparate sources such as video and audio. Emergence of broadcasting industry worldwide necessitated reduction in operational costs in tandem with technological enhancements, leading to exploration of more efficient methods of operation. Master control switchers and broadcast industry are considered to be technically cross-linked, as majority of demand for the switchers originates from broadcasters, while master control switchers make broadcasting process uncomplicated and efficient.

According to the Global TV Replacement Study, the main reasons why people decide to buy a new TV are the same ones that have been cited for years: to have a newer, bigger and better performing TV, and not just to replace a broken TV, although that can be a motivator. In an effort to drive even faster replacement activity, TV set makers have been developing new features to entice consumers to trade in even recently purchased sets that are just a few years old. While it is valuable to know how often people are upgrading or adding new TVs to the home, it’s also important to understand why. Some of the findings from this study show that newer features are not yet strong drivers of new TV purchases compared to fundamentals like trading up in size or getting a flat panel TV.

After a year of solid quarterly shipment growth in 2010, the rate of unit growth slowed significantly in Q1’11 to just 1% Y/Y. Total shipments were down 29% Q/Q to 55.2M units, a sharper seasonal decline than typical as excessive shipment volume in Q4’10, which rose 15% Y/Y, did not match sell-through growth and led to inventory carry-over from the holiday season in many regions. In addition, a sharp slowdown in growth for Japan, which had seen explosive growth in 2009 and 2010 due to the government incentive program known as Eco-Points, weighed on global results when compared to prior periods. Lagging growth in North America and Western Europe, together with slowing growth rates in China, also played a role.

LCD TV panel makers are leveraging 3D as an important feature to rejuvenate TV market demand, in the hope that 3D provides a new viewing experience for consumers.The addition of 3D is attractive to panel makers because the price premium can help them increase average selling prices. Of course, there are many challenges for the industry in promoting 3D LCD TVs to end users, such as inadequate 3D content, the presence of flicker or crosstalk that can cause dizziness, price, uncomfortable glasses, and confusion about different 3D technologies.

Attendees at the Consumer Electronics Show in January saw how pivotal internet services have suddenly become to TV products. Overall, nearly 20% of all TVs shipped in 2010 featured connected TV capabilities. According to the Q1’11 Quarterly TV Design and Features Report, the connected TV category is forecast to grow to over 123 million shipments in 2014 (at a 30% compound annual growth rate). Emerging markets will also play a major role in this growth, with Eastern Europe forecast to grow from 2.5 million connected TVs shipped in 2010 to over 10 million in 2014. In addition, DisplaySearch findings indicate that 33% of flat panel TVs sold in China in 2013 will have internet capability.

According to the latest Quarterly Mobile Phone Shipment and Forecast Report, revenue for mobile displays is forecast to grow 47% in 2011 and 19% in 2012—reaching $22.4 billion. Due to a strong Q4’10, 2010 mobile phone display shipments reached 1.6 billion units, up 10.8% Y/Y. Revenues reached $12.8 billion in 2010, up 10.4% Y/Y. Additionally, the 2010 mobile phone display ASP remained at $7.9—the same as in 2009—resulting in remarkable revenue growth. This is due to continuously growing emerging markets and to the smart phone trend, which is pushing demand for higher specifications including display size, resolution and technology.

Worldwide revenues for Media Tablet and eReader semiconductors grew over 2,000% to $3.3 billion in 2010 as semiconductor suppliers enabled original equipment manufacturers (OEMs) to bring new products to market less than 8 months after the iPad launched, according to the latest consumer semiconductor study. With the arrival of Android Honeycomb, dual core processors, and increased bandwidth, analysts expect Media Tablet and eReader semiconductor revenues to grow by 120% year over year in 2011.

One of the few industries to defy the recessionary blues, global iPTV market posted encouraging growth during the years 2007 through 2010, and is projected to amass a wide subscriber base of 343.2 million by the year 2015. Key factors fingered to drive growth in the market over the next few years include fast changing consumer TV viewing habits, increase in the number of Internet enabled TV owners, and growing popularity of bundled TV/Internet service packages. Robust demand for iPTV services in Asia-Pacific also augurs well for the market.