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Electronics Production | February 22, 2011

LED Backlighting brings growth for DTV Semiconductors

Driven by the vibrant light-emitting diode (LED) backlighting segment, the global digital TV (DTV) semiconductor market is expected to expand by a robust 16.5% in 2011, according to IHS iSuppli research.
Revenue in 2011 for DTV semiconductors is projected to reach USD 15.5 billion, up from USD 13.3 billion in 2010. Without the high-performing market for LED backlights used in liquid-crystal display (LCD) televisions, growth of the overall DTV semiconductor space in 2011 would amount to just 4.1%. Revenue will continue to rise during the next few years, hitting USD 19.0 billion in 2014.

The strong rise in the LED backlighting chips this year contrasts with the decelerating growth in the overall DTV semiconductor market. This year’s DTV semiconductor growth will amount to half the 33% expansion rate recorded last year, when the market rebounded from an anemic 2009 that was hamstrung by the economic crisis. The LED segment, on the other hand, continues at a blistering pace, jumping 138.4% from USD 1.3 billion in 2010 to an anticipated USD 3.1 billion this year.

LED backlighting chips will generate USD 5.5 billion in revenue and be present in more than 80% of all flat-panel televisions by 2014, a far cry from USd 370 million in 2009 when they were available in less than 3% of models in the market, IHS iSuppli research shows.

All told, numerous new technologies and features in addition to LED backlighting are being implemented in flat-panel TV sets that will serve to fuel growth of the DTV semiconductor market. Among them are the adoption of 3-D technology, frame-rate conversion to 120Hz and 240Hz, wireless connectivity and Internet media playback.

In particular, the broader adoption of wireless technologies, such as Bluetooth and Wi-Fi, will represent a new area of opportunity for semiconductor suppliers.

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