Dual Tv Tuner

Demand for digital television has long been fuzzy, but component makers are betting new requirements from the Federal Communications Commission (FCC) mandating digital tuners in TV sets will soon sharpen the picture and increase sales of various parts.

That's the hope of Toshiba's North American discrete semiconductor unit, which is banking on digital TV to help lift its also-ran status in North America. The company currently is ranked No. l0 in revenues, even though its Japanese parent is the leading discrete supplier worldwide.

Toshiba is not alone in its quest. Other semiconductor and passive component makers are salivating over the FCC's recent mandate requiring digital TV tuners in most new television sets within two to five years. More new component introductions are likely industry-wide.

Toshiba America Electronic Components Inc. (TAEC) today plans to introduce new RF products for use in digital TV. TAEC also is planning to roll out a host of other discrete semiconductor products for LANs, optical communications and other applications. These Toshiba parts were previously not available in North America, and some are totally new.

"Toshiba aims to double discrete market share in North America by 2004," said Jay Heinecke, director of business development at TAEC's discrete business unit.

For larger-size TV sets, a lot of manufacturing is still in North America, he added.

North American revenues for the company in 2001 were $86 million, with 3.9 percent market share, compared to $248 million and 11.2 percent for North American discrete leader ON Semiconductor, according to Gartner Dataquest.

TAEC's latest RE discretes for digital TV tuners include varactors, FETs, dual-gate MOSFETs, pin diodes and Schottky Barrier diodes. Together they are a key part of the company's growth strategy, even though high-definition television (HDTV) and other advanced digital TV schemes have so far not met industry expectations. In addition, broadcasters who must provide digital transmissions and consumers who must buy digital sets have been luke-warm in their support, and some consumer groups and TV set makers already are grumbling about the FCC's latest action.

Still, if the FCC mandate stands, a lot of extra componentry will be needed. "To help TV manufacturers meet this requirement, Toshiba provides a one-stop solution for RF devices," said Tom Chand, business development engineer for TAEC's RE devices. "We're prepared to support the industry's transition to digital TV."

So are others. "Our Siliconix MOSFETs and ICs can be used for digital TV, but right now there isn't a significant demand from that segment," said Swapan Banerjee, senior director of business development at Vishay Siliconix. "I'm sure as volume picks up, there will be."

Business is certain to pick up if the FCC has its way. "The FCC wants stuff to move along faster, accelerating the conversion to digital TV," said Tony Massimini, chief of technology at Semico Research Corp.

That should be good news for component makers, said Michelle Abraham, senior analyst at InStat/MDR, which forecasts that U.S. digital TV unit shipments will jump from 2.4 million this year to 20.4 million in 2006. (InStat/MDR is owned by Reed Business Information, the parent company of Electronic News). "For those companies involved in silicon, to mandate a digital tuner in every TV set should be great. I expect we will see more companies come out with chips."

Still, consumers may not be overjoyed. While it might promote overall expansion of digital TV technology, the majority of U.S. consumers don't really need digital tuners in their televisions because they subscribe to cable or satellite systems already offering digital capabilities through set-top boxes. Also, digital tuners in TV sets will be an added expense; and consumers who rely on over-the-air transmissions may be least able to afford the higher cost.

But the extra cost will be mitigated somewhat by overall price declines on televisions.

COPYRIGHT 2002 Reed Business Information
COPYRIGHT 2002 Gale Group

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