Cost of DVD single-chip solutions dip to new low

August 28, 2003

GristyMcFisty used our news submit to tell us that due to heavy
competition among suppliers, prices for DVD player single-chip
solutions dropped to 7 dollars US recently, compared to 8
dollars in the second quarter, according to sources.

The single-chip prices were held
at 8 dollars US earlier, as new entrants were forced to delay their
product launches due to the SARS outbreak. The situation has changed
recently as companies like Sunplus Technology, Cheertek, Zoran and ESS
Technology have accelerated their production and sampling, sources
said.

In general, the US 7 dollar price should be
maintained until the end of this year, sources at local IC design firms
projected.

Taiwan-based MediaTek still claims the lead in the
global DVD player single-chip market, with about a 50-60% worldwide share.
To keep the top position, the company is now focusing on developing
single-chip solutions that integrate an RF IC and MPEG-4 decoder for
portable DVD players, sources said.

The article ststes, that volume shipments of
the portable DVD single-chip products are expected to start at the end of the
third quarter. The new products, expected to be priced US 3-4
dollars higher than regular ones, should help MediaTek maintain decent
profit margins. Currently, ESS is reported to be MediaTek's only competitor in
that segment.

Source: pcpro.co.uk