Worldwide LCD TV Core Chip and Industry Development

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1 Industry Intelligence Program Semiconductor Worldwide LCD TV Core Chip and Industry Development Abstract The development pace of video processor is slowing down as the LCD TV (Liquid Crystal Display Television) industry approaches maturity. Therefore, the LCD TV core chip industry has been pinning high hopes on emerging LCD products such as smart TV and 4K2K TV. The rise of smart TV also has enticed other areas of chipmakers to set foot into this sector, leading to an increasingly intense competition. This report profiles the development of LCD TV core chip industry and examines its future trends from the product and industry perspectives. by Cindy Gu Document Code: Publication Date: Janaury 2014 Check out MIC on the Internet!

2 Worldwide LCD TV Core Chip and Industry Development i Table of Contents Page 1. Development of Worldwide LCD TV Core Chips K2K TV Chip Post Signal Processing IC Key Solution for 4K2K Panels Next Generation Image Processor with 4K2K Resolution and 60Hz Refresh Rate Application Processor ARM Leads Smart TV CPU and GPU Market CPU and GPU Advancing Towards High Performance Multi-core Development Development of Worldwide LCD TV Core Chip Industry Incumbents International and Japanese Makers Fading Out of the Market MStar and MediaTek Feel the Breeze from International Brands' Market Withdrawal Entrants Marvell and Qualcomm March into Smart TV Application IC Market with High-end Application Processor Challenges for Entrants... 5 MIC Perspective... 6 Appendix Market Intelligence & Consulting Institute January 2014

3 ii Industry Intelligence Program - Semiconductor List of Figures Page Figure 1 General LCD TV Core Chip Architecture... 1 Figure 2 4K2K LCD TV Video Processor and Post Signal Processor Development Roadmap... 2 Figure 3 Mainstream Smart TV Application Processor Development Roadmap... 3 Figure 4 Worldwide LCD Video Processor Shipment Share by Solution Provider Tier, January Market Intelligence & Consulting Institute

4 Worldwide LCD TV Core Chip and Industry Development iii List of Tables Page Table 1 Development of New LCD TV Core IC Solution Developers Market Intelligence & Consulting Institute January 2014

5 Worldwide LCD TV Core Chip and Industry Development 1 1. Development of Worldwide LCD TV Core Chips Looking at LCD TV core chip architecture, a video processer is responsible for video decoding, deinterlacing, and scaling the input video signals to make them easier to fit different panel resolutions. To configure the frame rate of panels to 120Hz or 240Hz, or to solve the residue images of LCD panels, a FRC (Frame Rate Converter) or ME/MC (Motion Estimation/Motion Compensation) IC will be incorporated into a video processer. To smarten up a LCD TV, an application processor is added. Core chips mentioned in this report consist of a video processor, RFC, ME/MC IC and application processor. Inside a non smart TV, or LCD TV, the video processor is in charge of majority tasks so is also called SoC (System on Chip). In a smart TV, a video processor and an application processor are often integrated into a SoC. As LCD TVs in the market continue to inch up in sizes and LCD TVs with a 120Hz refresh rate are more commonly seen, an integrated SoC (System on Chip) that combines a RFC or ME/MC chip has been launched onto the market. Figure 1 General LCD TV Core Chip Architecture Note: HDMI is short for High Definition Multimedia Interface; PHY is short for Physical Layer; DRAM is short for Dynamic Random Access Memeory; CVBS is short for Composite Video Broadcast Signal; CPU (Central Processing Unit); GPU (Graphic Processing Unit); VGA is short for Video Graphic Array Source: MIC, January 2014 With all eyes now on 4K2K TV and smart TV, video processor and application processor have played a key role in the TV evolution and thus shall merit further observation K2K TV Chip Post Signal Processing IC Key Solution for 4K2K Panels 2014 Market Intelligence & Consulting Institute January 2014

6 2 Industry Intelligence Program - Semiconductor Figure 2 4K2K LCD TV Video Processor and Post Signal Processor Development Roadmap Note 1: Development timelines of core chips are based on the shipment time of corresponding TV sets Note 2: FHD/60Hz indicates devices featuring FHD resolution and 60Hz refresh rate and 4k2k resolution and 30Hz refresh rate Source: MIC, January Next Generation Image Processor with 4K2K Resolution and 60Hz Refresh Rate 1.2 Application Processor ARM Leads Smart TV CPU and GPU Market CPU and GPU Advancing Towards High Performance Multi-core Development January Market Intelligence & Consulting Institute

7 Worldwide LCD TV Core Chip and Industry Development 3 Figure 3 Mainstream Smart TV Application Processor Development Roadmap Note 1: Development timelines of core chips are based on the shipment time of corresponding TV sets Note 2: ARM architecture products are chosen as indicator due to widespread use of ARM IP on CPU and GPU of major application processor providers Source: MIC, January Development of Worldwide LCD TV Core Chip Industry 2.1 Incumbents International and Japanese Makers Fading Out of the Market 2014 Market Intelligence & Consulting Institute January 2014

8 4 Industry Intelligence Program - Semiconductor Figure 4 Worldwide LCD Video Processor Shipment Share by Solution Provider Tier, Note 1: TV brands' in-house IC solutions sold to others were also incorporated into the statistics Note 2: Application processor integrated video processors were also incorporated into the statistics Source: MIC, January MStar and MediaTek Feel the Breeze from International Brands' Market Withdrawal 2.2. Entrants Marvell and Qualcomm March into Smart TV Application IC Market with High-end Application Processor Table 1 Development of New LCD TV Core IC Solution Developers Vendor Existing Domain Product Model Key Feature Major Client Marvell Qualcomm Amlogic Source: respective companies, compiled by MIC, January 2014 January Market Intelligence & Consulting Institute

9 Worldwide LCD TV Core Chip and Industry Development Challenges for Entrants 2014 Market Intelligence & Consulting Institute January 2014

10 6 Industry Intelligence Program - Semiconductor MIC Perspective Rise of Smart TV and 4K2K TV to Buoy Global LCD TV Chip ASP China Records World's Highest Smartphone TV and 4K2K TV Penetration Some Brands Continue In-house Production of Chips and Some Fading Out January Market Intelligence & Consulting Institute

11 Worldwide LCD TV Core Chip and Industry Development 7 Appendix Glossary of Terms BU CPU CVBS DAC DRAM DVD FHD GPU HDMI HEVC IP LCD TV MC ME MIPS OS PHY RFC SoC STB VGA Business Unit Central Processing Unit Composite Video Broadcast Signal Digital to Analog Converter Dynamic Random Access Memory Digital Video Disk Full High Definition Graphic Processing Unit High Definition Multimedia Interface High Efficiency Video Coding Internet Protocol Liquid Crystal Display Television Motion Compensation Motion Estimation Microprocessor without Interlocked Pipeline Stages Operating System Physical Layer Frame Rate Converter System on Chip Set Top Box Video Graphic Array 2014 Market Intelligence & Consulting Institute January 2014

12 8 Industry Intelligence Program - Semiconductor List of Companies Amlogic Broadcom CooCaa TV Google Hisense Lenovo Letv.com LG Marvell MediaTek MStar Novatek Panasonic Philips Qualcomm Realtek Sigma Designs Skyworth Sony Toshiba Trident Xiaomi Zoran January Market Intelligence & Consulting Institute

13 For more information Service Hotline Fax Address Web Address Copyright 2014 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.

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