According to MIC (Market Intelligence Center), an ICT industry research institute based in Taipei, with the advent of the peak season in the retail market and the emergence of ATSC (Advanced Television Systems Committee) STB (Set-Top-Box) demand in the United States, Taiwanese DTT (Digital Terrestrial Television) STB shipment volume is expected to pick up in the second half of 2007. However, it is forecasted that the second-half shipment volume will not return to the same level as in the previous year, due to fierce price competition from Chinese makers. Taiwanese DTT STB shipment volume is projected to tumble nearly 30% year-on-year to approximately 1.1 million units in the second half of 2007. In the full-year 2007, Taiwanese DTT STB shipment volume is forecasted to slip 35% annually to about 2.0 million units.

Looking ahead to 2008, owing to the effect of the ATSC STB subsidy program in the United States, the termination of analog signal broadcasting in Western Europe, and the inauguration of DTT in Eastern Europe, Taiwanese DTT STB shipment volume is expected to pick up in 2008. Moreover, some Taiwanese makers have started to develop advanced hybrid IPTV (Internet Protocol TV) / DTT STBs, demand for which is projected to emerge in 2008.

Western Europe has been the major shipment destination for Taiwanese makers, with major shipments being DVB-T (Digital Video Broadcasting-Terrestrial) STBs with CA (Conditional Access) and FTA (Free-to-Air) DVB-T STBs without CA. According to MIC industry analyst Leon Kao, shipment of Taiwanese DVB-T STBs with CA was sluggish in the first half of 2007, owing to the off-season effect, the exit of some Taiwanese makers from the major Italian market after failing to obtain licenses for the new version of CA hardware system, and the lack of large-scale orders from local retailers which were clearing out their inventories of old models.

Owing to lower technological thresholds, Taiwanese FTA DVB-T STBs without CA have been facing challenges from low-tagged Chinese products in the major markets of Germany, France, and Spain. Taiwanese makers used to enjoy a fair share in the UK market featuring the MPEG-5 standard, thanks to the entry barrier posed by technologies and certification. However, the UK market was no longer impregnable following the acquisition of MPEG-5 certification by various IC design houses and the subsequent release of reference boards to Chinese STB makers. Chinese makers have since launched a low-price offensive, posing serious challenges to Japanese, Korean, and Taiwanese makers alike. As a result, Taiwanese DVB-T STB shipment volume and value both dropped about 40% year-on-year in the second quarter of 2007, with shipment volume reaching 341,700 units and shipment value US$9.6 million.

With demand in the Italian market remaining sluggish, shipment share of DVB-T STBs with CA plunged, making low-tagged DVB-T STBs without CA the mainstream Taiwanese shipment in the first half of 2007. ASP (Average Selling Price) of Taiwanese DVB-T STBs tumbled nearly 20% year-on-year to US$28 in the second quarter of 2007.

As the US government is not expected to implement the ATSC (Advanced Television Systems Committee) STB subsidy program until 2008, the local demand for ATSC STBs remained sluggish, and Taiwanese ATSC STB shipment volume reached 46,700 units in the second quarter of 2007. At present, Taiwanese makers' shipment mainly consists of common non-subsidized models, which feature higher specifications such as HDTV (High-Definition TV) reception and HDMI (High-Definition Multimedia Interface). Therefore, ASP of Taiwanese ATSC STBs remained at the level of about US$75.

More information can be found in the following MIC reports:  The Taiwanese Digital Terrestrial STB Industry, 3Q 2007

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About MIC

Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english