Intel Corp is moving away from the TV system-on-chip (SoC) market, as it struggles to compete with other companies.
According to an IHS market tracker report last week, Intel lost out in market shares, holding 2% compared to Mstar Semiconductor Inc’s 39% in the first half of 2011.
The Google partner will now focus its attention on smartphones and media tablets rather than its Google TV initiative, which has suffered poor sales.
IHS also found potential reasons behind why the Smart TV space isn’t growing as well as predicted, including the lack of definition within the market, meaning consumers could become confused about the new technology.
Randy Lawson, principal analyst for display and consumer electronics at IHS, said: “In a television semiconductor market characterized by entrenched suppliers and weak near-term growth prospects, Intel was facing enormous challenges in trying to establish itself as a competitor.”
Another problem that suppliers face is pessimism towards the future of the television market, and the decline of market revenue, as zero growth is expected for flat-panel TV semiconductors. This is due to steep prices, weak-end markets and consumer demand.
“Intel will wind down operations in the digital TV (i.e. flat panel) media processor business and will no longer develop silicon for flat panel TVs after our next generation 32nm chip ships next year” said Kathy Gill, an Intel spokesperson.
She continued: “There are tremendous synergies between tablets and TVs as both are mainly content consumption, viewing devices, and we are expanding the charter of our Netbook and Tablet Group by combining it with the CE business, which includes the Cable and IPTV businesses.”
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