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CE Devices Drive MPEG Video IC Demand

With video capture and playback now appearing in previously untapped markets for Consumer Electronics (CE), the MPEG video integrated circuit (IC) market has plenty of room for growth, according to an In-Stat market study.

MPEG IC unit shipments will grow from 649 million in 2006 to 1.6 billion in 2011, the high-tech market research firm says. MPEG video ICs are used in the compression and decompression of video streams in many consumer devices from small mobile handsets to large digital TV sets.

"Unit shipments for MPEG-2/4 ASP encoder and decoder ICs will grow slowly if at all in the future as H.264 encoder and decoder ICs experience much higher growth rates," says Michelle Abraham, In-Stat analyst. "Revenue in the MPEG-2/4 ASP encoder and decoder IC markets will decline, as there is enormous price pressure in these markets and a lot of competitors."

The research report entitled "MPEG Video ICs: H.264 in the Limelight" covers the worldwide market for MPEG Video chips. It provides forecasts for unit sales, revenue and average selling prices on MPEG ICs by type through 2011. It also contains unit and revenue market share for X MPEG IC markets.

In-Stat's market study found the following:

- The advent of the H.264 standard has given rise to startups like Ambarella and Horizon Semiconductor, while 2006 saw the first mobile MPEG-4 IC shipments from Rockchip, MtekVision, and Chipnuts.

- MediaTek was again the top supplier in 2006 of MPEG-2 DVD decoder ICs, LSI Logic the top supplier of MPEG-2 encoder ICs, and STMicroelectronics was the top supplier of MPEG-2 MP@ML set-top-box decoder ICs and H.264 decoder ICs.

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