Production boost in DVD player chip market decreases prices

By
Jan Willem Aldershoff
-


Digitimes reports that DVD player chip manufacturers have boosted their
production and therefor prices of the single solution chips have been
dropping with a dollar. Prices have now dropped from 8 dollar to 7. The price drop will likely been undone soon when chip manufacturers are going to start production of more complicated chips that will also do MPEG-4.

The single-chip prices were held at US$ 8 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 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

Source: Digitimes

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