New TV Tech Could Be Boon for Venture-Backed Chip Companies

The move to new display technologies and demand for new applications are turning televisions into the next growth segment for chip companies, and venture-backed companies could benefit.

Annual sales of semiconductors into televisions will grow by $2.9 billion this year to $12.2 billion, according to a new report from iSuppli, a semiconductor research firm that expects that pace of growth to continue on through next year.

This growth is being driven by two trends: the falling price of liquid crystal display, or LCD, panels, and the demand for features that haven’t been part of television designs until recently.

Now that overall costs for LCD panels, which are in most televisions, are coming down, television makers are focusing on improving the performance of their devices, said Randy Lawson, an analyst with iSuppli. This in turn calls for a host of new components such as image processors, power management chips and light-emitting diodes, Lawson said.

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