In 2022, the market share of the top three TV SoC vendors was very high (their combined share will be 86%). Their market share is set to increase in 2023. New TV SoC features could lead to more premium features being built into TV brands.
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Summary
MediaTek, Novatek, and Realtek were the top three TV system-on-chip (SoC) vendors in 2022. Their combined total market share was higher than in 2021. Their combined share is expected to be 86% for the full year of 2022 (in 2021, the top three’s share was 80%). The bargaining power of these TV SoC vendors is now more than before. Also, SoC prices will be affected by the limited capacity of 12-inch foundry manufacturers. We expect the top three vendors’ relationship with the market will remain stable, and their market share will increase in 2023. New TV SoC features could lead to more premium features being built into TV brands. For example, Sony’s new 2023 QD-OLED TV will launch with the powerful new MediaTek Pentonic 1000 chipset in 2H23.
Key findings
- Key factors that changed in the TV SoC market from 2021 to 2022:
- IC shortage issue: TV makers faced IC shortage issues in 2021, and TV brands responded by expanding their supply base to find more SoC suppliers for support. For example, Samsung increased MediaTek’s supply share in 2022.
- Single source concerns: TV brands realized that relying on only one SoC supplier created dependency. TV brands needed to diversify their risks and increase their bargaining power.
- TV SoC support for different regions: TV brands require some customized services for different regions, such as Japan and Europe.
- New TV SoC features and TV product planning: TV product planners adjusted their mix of new features needed for developing new plans. Smart TV OS streaming trends increase the importance of Roku OS, Fire OS, and Wi-Fi 6.
- Key trends in 2023:
- Chinese IC vendors (such as Amlogic and HiSilicon) will face trade restriction risks. Their customers are concerned that future laws and regulations could further limit trade between the US and China.
- The total market share of the top three TV SoC vendors will become even more concentrated because TV brands will shift some SoC demand from Chinese makers to the top three makers.
- Leading TV SoC vendors also support the introduction of premium features in TV products during 2023, such as HDMI 2.1 with four ports and Wi-Fi 6/6E.
The high industry penetration of the top three TV SoC vendors will become even more significant
IC shortage issues, single source concerns, TV SoC support for different regions, and the introduction of new TV SoC features for the TV product planning mix are the four key factors that will lead TV brands to choose different TV SoC vendors. A TV SoC is like the heart of a TV product; it enables customers’ smart TVs to run more smoothly.
MediaTek, Novatek, and Realtek were the top three TV SoC vendors in 2022. Their combined total market share was higher than in 2021. Their combined share is expected to be 86% for the full year of 2022 (in 2021, the top three’s share was 80%), as shown in Figure 1.
MediaTek still leads the TV SoC market thanks to the strength of its diversified TV brand customers. Key customers include Hisense, Sony, LG, and new customer Samsung. Samsung started using MediaTek because of IC shortage issues that occurred in 2021. Novatek’s main customer is Samsung, while Hisense moved up to second place in 2022. Realtek’s main customer is LG Electronics, followed by TCL and Sony.
Figure 1: Top three TV SoC shipments and market share (thousands of units)
Source: TV Cost & Price Forecast Model 3Q22 Analysis, Omdia
Sony’s new 2023 QD-OLED TV will be the first to launch with the powerful new MediaTek Pentonic 1000 chipset
Sony’s first QD-OLED TV was supported by MediaTek’s TV SoC MT5895 in 2022. It now plans to use the new SoC Pentonic 1000, which will launch in 1Q23, and we expect Sony will launch its new product during 2H23.
The three key points of the new Pentonic 1000 (12-nm chip) are as follows:
- It will be the first SoC to support four HDMI 2.1 ports.
- It has Dolby Vision IQ with precision detail.
- It includes Wi-Fi 6/6E.
We expect that Sony’s new 2023 QD-OLED TV will be its first TV product to support Wi-Fi 6/6E in the entire Sony TV product line.
Appendix
Methodology
Omdia’s TV Sets Spotlight Service provides detailed shipment, revenue, and forecast data; country and feature analysis; and expert insights to guide strategic planning in the global TV set business.
Further reading
TV Cost & Price Forecast Model 3Q22 Analysis (January 2023)
TV Cost & Price Forecast Model – 3Q22 (January 2023)
Author
Kelly Lee, Principal Analyst, TV
