Market opportunity analysis new product introduction: integrated video processing chip

Abstract

With the digitization of home entertainment it IS expected that semiconductor industry is going to see a significant opportunity. The next generation TVs will be one of the key applications that will drive this demand. The move to next generation TV is characterized by migration to Flat Panel Displays, High Definition Television Content and Digital transmission and possible HD Digital transmission With the semiconductor content in digital being 4 times that of an analog TV the semiconductor opportunity in digital TVs is expected to grow at 30% CAGR to $3.1billion in 20081 Accordingly there is going to be a surge in demand for high end video processing. Taking a technology diffusion approach to segment DTV market it can be observed that rate of diffusion (being a function of innovation) is going to high. There is going to significant pressure for extending the enthusiasts segment features to the performance segment and that too at an attractive price point. This can be achieved only though highly integrated semiconductor solutions. Silicon integration has enabled tremendous cost, space and power savings across a wide variety of consumer electronics products, enabling a strong demand for more highly integrated semiconductor solution capable of delivering new voice, data and multimedia capabilities, without increasing the size, cost or power requirements of next-generation Televisions. With the advent of advanced packaging techniques designers can now move back on to the integration curve while maintaining a high degree of flexibility, proven reliability and guaranteed performance. Potential market for high end televisions coupled with technology developments presents a significant opportunity for developing an integrated high end video processing chip. This report will focus on a detailed market analysis for introducing a high end video processing chip containing. This report will focus on brad understanding of the market, market segment analysis, feature and product concept definition and a high level estimate of market potential. The objective of this project is to determine feasibility of developing an integrated chip for video processing by doing a detailed market opportunity analysis. The following approach was adopted for developing the report. Idea Generation and Validation Broad understanding of features required for this market High level feasibility analysis for the product Accessing Market Potential Obtaining a broad overview of the market Detailed market analysis to identify various market segments Determination of target market segment that will be served by this product Determination of potential demand for each of this market segment Feature and concept definition Determination of customer needs for each of the product segment Arriving at final concept / design solution for the product The data sources that were leveraged include Gartner Report CES - Consumer Electronics Show Competitor Data sheet Inputs from TSMC for manufacturing and packaging of Silicon Chip To meet the demand of more highly integrated semiconductor solutions, innovation is accelerating along two parallel tracks - functional integration at both the die and package level, and complete semiconductor system solutions for television applications. The latter consolidates all the necessary highly integrated silicon, modules and software into a single comprehensive solution, which simplifies the design process and speeds time to market To start with, designers are looking at both system-on-a-chip (SoC) integration, as well as system-in-package (SiP) approaches. SoC integration has always been the ultimate goal of chipset designers, although it has presented tremendous design hurdles that impact handset cost, size, design cycles and performance. At some point in the future, integration at the die level will significantly reduce input/output count and deliver all the other traditional benefits of smaller process geometries. In the near term, however, many are finding that it is better to minimize these risks associated with SoC integration and instead use advanced packaging strategies, coupled with selected silicon integration in specific functional blocks, to optimize flexibility so that designers can deal with architectural partitioning trends, evolving standards, rapidly changing feature requirements, and increased system complexity.