MPEG Chip Revenue to Double; ST and ESS Rank First in MPEG Revenue & Units for 1999.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--May 17, 2000

MPEG video chip revenue for both decoding and encoding circuits will double from $1 billion to $2 billion, with units surging from 77 to 200 million from 1999 to 2004, according to Cahners In-Stat Group, a high-tech market research firm.

ST Microelectronics again captured the top spot in MPEG video chip revenue due to strong shipments of their integrated MPEG-2 decoder solutions for set top boxes. ESS Technology passed C-Cube to become the leader in MPEG video chip unit shipments due to the strength of their MPEG-1 and MPEG-2 decoder shipments for the video disc player market.

C-Cube continues to be the leader in the MPEG encoder market as well as the DVD MPEG-2 decoder market.

The size of the MPEG-2 decoder market for set top boxes encourages chip suppliers to play in this space. Moreover, new competitors continue to enter the MPEG video chip market, as personal video recorders and other products increase the demand for consumer MPEG-2 encoders and decoders.

A recent In-Stat report also finds:

-- New MPEG-4 products will move MPEG-4 video chips from almost

zero percent of the market in 1999 to 4 percent in 2004.

-- Over 40 percent of the revenue each year will come from MPEG-2

decoder solutions for set top boxes.

-- An increase in HDTV reception equipment will make the MP@HL 

MPEG-2 chips the fastest growing segment of the MPEG video

chip market.

-- Rounding out the top 10 in the MPEG video chip market are

Broadcom, IBM, LSI Logic, Philips Semiconductor, Sigma

Designs, Winbond, and Zoran.

The report Set Top Boxes Take a Major Slice of MPEG Video Chips (No. MM0007DV) provides a thorough overview of the entire MPEG chip market, broken down into MPEG-1 encoders, MPEG-2 Encoders, MPEG-1 decoders, MPEG-2 decoders for SVCD and DVD, MPEG-2 decoders for on-line networks (including set top boxes), and MPEG-4 chips.

The report also covers emerging MPEG standards and provides forecasts for each segment of the market through 2004. Market shares for top MPEG video chip suppliers are provided. To purchase this report or for more information, please call Courtney McEuen at 480/609-4533; [e-mail] or visit http://www.instat.com/catalog/cat-mm.htm to purchase online.

The report price is $2,995 USD.

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.