Intel Squeezed Out Of TV Chip Market Says Analyst

The reason why Intel has decided to leave the TV system on chip market could be due to the fact that the semiconductor giant had little room to maneuver.

Greater competition combined with its late arrival, entrenched competition and a higher cost of manufacture, meant that Intel started its journey at a disadvantage.

Analyst firm IHS Suppli (via Jessie Shen from Digitimes) says that three SoC companies (Mstar Semiconductor, Mediatek and Trident Microsystems) accounted for 57 percent of the market.

27 per cent is occupied by captive suppliers like Samsung Electronics, Sony and Toshiba which produce and use the chips in their own televisions.

There are also the independent silicon suppliers, such as Zoran, which account for around 14 per cent of the market, leaving Intel and others to fight for a tiny two per cent.

Intel bet on Google TV products to provide it with a springboard to enter the TV SoC market, but it proved to be a disappointment for both the search giant and Intel.

The price of Google TV had to be slashed from $299 to $99 to foster sales, but the rise of ARM in other adjacent segments means that Intel is likely to redirect resources allocated to its CE equipment space to tablets and smartphones.