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Multimedia handsets fuel growth of control chip industry

The mobile phone sector is the hottest market for South Korean multimedia control chips. Suppliers focus on high-end chips for multifunctional models.

The evolving multimedia capabilities of mobile phones continue to drive growth in the multimedia control chip industry. Mobile phones top makers’ list of applications, followed by portable media players (PMPs), MP3 players and portable TVs.

According to market research firm IDC, the world’s multimedia component market for mobile devices is estimated at $27.8 billion in 2007. The firm forecasts the market will grow to $28.6 billion in 2008, and to
$29.9 billion in 2010.

In South Korea, smartphones and multimedia phones are chip suppliers’ main application targets in 2008. Makers in this region are capable of producing low-priced yet high-performance multimedia control chips for low- to high-end models. Despite this capability, competition in the mobile phone market has pushed some suppliers to shift to less-saturated markets such as PMPs and car and home audio devices.

Three major players supply multimedia control chips for mobile phones and PMPs in South Korea: Corelogic Inc., Mtekvision Co. Ltd, and Telechips Inc.

According to Kwang Woo Lee, assistant manager of Telechips, not all suppliers cater to both applications. Multimedia control chips for mobile phones play only subsidiary parts for video and audio, while in PMPs they have to play controlling functions of core CPUs.

© Source: www.electroniccomponents.globalsources.com

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