TV chip suppliers look to peripherals for profit growth
TV-use IC suppliers have turned their focus to over-the-top (OTT) devices and peripherals for smart TVs that yield higher profits, according to industry sources.
The local TV brands in China and other emerging markets have been seeking lower-priced supplies, putting much pressure on their IC and panel suppliers, the sources indicated. Fierce competition in the global TV market is also affecting negatively profits at related IC and panel companies, the sources said.
TV chip suppliers have seen some of their orders generate a gross margin of less than 30%. To defend their profitability, the firms have moved to focus on high-margin applications such as OTT devices and peripherals for smart TVs, the sources suggested.
Taiwan-based MediaTek, Novatek Microelectronics, Realtek Semiconductor and ALi engaged in the development of TV and set-top box (STB) use chips are all gearing up to offer solutions for TV peripherals, the sources noted. Meanwhile, analog chip firms such as Richtek Technology and Global Mixed-mode Technology (GMT), as well as storage media-related chip suppliers Genesys Logic and Alcor Micro have all been aggressively developing their product lines for smart TV applications, the sources said.