Omdia: By 2025, the market share of the top three TV chip suppliers will increase to 83%.

In 2024, the market share of the top three TV chip suppliers had reached 82%. Omdia predicts that by 2025, this proportion will slightly increase to 83%. Global major TV brands continue to adjust their TV SoC supplier relationships in response to environmental changes. This adjustment depends primarily on key factors such as smart TV operating systems (OS), target market regions, high refresh rate (HFR) TVs, and gaming TV market specifications. Key factors for TV brands to adjust TV SoC in 2024-2025: Risk of single supplier dominance and cost considerations: If the market share of TV chips is too concentrated, for example, reaching 60% to 70%, TV brands may reduce risk and increase bargaining power by expanding to 2-3 suppliers. Customized demand in regional markets: Different regions such as Japan or Europe require different services to adapt to local digital TV signal decoding and standards. Choice of smart TV platforms and operating systems: Based on the market planning of TV brands in various regions, experienced suppliers such as Google TV, Roku OS, Fire TV OS, etc. are chosen. By 2025, new OS such as TiVo, Xumo, Titan, Whale OS TV, etc. will become a focus. High refresh rate and gaming TV market: TV SoC capable of supporting high refresh rates such as 144Hz/165Hz becomes an important choice for brands, aiming to enhance product computational capabilities and provide more AI application services. Key trends of TV chips in 2024-2025: The ongoing US-China trade war may continue to affect the market share of Chinese TV chip suppliers and prompt China to develop self-sufficient supply chain capabilities. The market share of the top three TV chip suppliers is expected to rise again to 83% in 2025, depending on customer mix, supported platforms (OS), and cost allocation. South Korean major TV brands may increase the usage of internal chips due to government plans to increase chip autonomy. Some TV brands are actively moving towards specific large platforms, for example, Panasonic shifted from FireFox OS TV to partnering with Amazon Fire TV, while TCL increased cooperation with Google TV in 2025. Slight rebound in market share of the top three TV chips in 2025: By the end of 2023, the market share of the top three TV chip suppliers was 83%. Due to steady TV demand in 2024, the market share slightly decreased to 82%. However, with the selection of TV brand platforms and supplier adjustments in 2025, Omdia predicts that this proportion will rebound to 83%. MediaTek, as a leading player in the TV chip market, benefits from diversified TV brand customers, including Hisense, TCL, LG, and Sony. Although Samsung only shipped old models in the first quarter of 2024, by 2025, Samsung's new models may re-select MediaTek, partly due to doubts about the sustainability of supplying high-end Samsung LSI models. Novatek's main customer is Samsung, followed by Hisense and Koninklijke Philips N.V. Sponsored ADR. In 2025, Novatek aims for more diversification among different brands. Realtek's main customers are LG, followed by TCL and Sony, especially with digital signal experience in the European market. Looking ahead to 2025, as global consumer power continues to recover, and with the early procurement effect in the Chinese market due to government policy in the fourth quarter of 2024, demand is expected to weaken slightly throughout the year. Consumers may lean towards purchasing mid-range to low-end TVs, and subsidies in the Chinese market may boost demand for some high refresh rate or high computational power TV models. Figure 1: Trends of the top three TV chip shipments and market share 2023~2025 (000s) Source: Omdia "TV Cost and Price Forecast Model 3Q24 Analysis - January 2025" Leading TV brands to further dynamically adjust supplier relationships in 2025 Reviewing the TV chip market in 2025 and the supply relationships of TV brands, it is evident that many new variables are gradually influencing the originally stable supply chain structure. The four major influencing factors include: the entry of Chinese TV chip manufacturers, South Korean government promotion of TV chip autonomy, the impact of TV chip prices and new wafer foundry technologies, and the rise of high refresh rate gaming TV markets. The following is a detailed analysis of each influencing factor: 1. Entry of Chinese TV chip manufacturers Starting from the second half of 2024, HiView under Hisense and some chip manufacturers that previously focused on non-smart TVs have actively entered the low-end or entry-level 2K TV products (such as FHD/HD). As a result of external factors such as Sino-US trade restrictions, Chinese chip manufacturers have further increased their investment in independent research and development capabilities. In 2024, LGE began testing Chinese chips, and Hisense introduced HiView TV SoC in low-end TV models. This indicates that Chinese chip manufacturers are gradually increasing their market participation, especially in price-sensitive and low-technical threshold market segments. 2. South Korean government's push for TV chip autonomy Under the influence of South Korean government policies, leading brands such as Samsung and LGE are encouraged to increase the proportion of in-house chip development and utilization. In 2024, Samsung and LGE have planned to increase the utilization of in-house designed chips, with the goal of reaching 24% and 17% by 2025. This policy aims to enhance industrial autonomy and address the risks of global supply chain fluctuations and external dependencies. 3. Coordination of TV chip prices and the influence of new wafer foundry technologies In 2024, price became a key factor affecting supply relationships.One of them, especially for price-sensitive end markets. The technology node and process capability of chip foundries have also become important decision factors. Mediatek attempted to cooperate with Intel's wafer foundry in the US in 2024, planning to introduce 16nm process for mass production of TV chips, but the actual production situation needs further observation until 2025.In addition, the market expects the top three chip manufacturers (such as Mediatek, Longyi, etc.) to transition their 2K and 4K 60Hz SoCs from 22nm-28nm processes to the new generation of 12nm-16nm processes by 2025. This will help improve chip performance while reducing power consumption and costs. IV. The rise of high refresh rate gaming TV market With the rapid growth of the gaming TV market, high refresh rate has become an important competitive feature in the emerging market. Currently, only chips designed internally by Mediatek and Samsung can support 165Hz TV SoCs. For brands like Hisense that focus on the mid to high-end market and large size TVs, Mediatek has obtained a large number of orders due to its technological advantages. It is expected that by 2025, 72% of Hisense's chips will be sourced from Mediatek, further solidifying its market leading position. Figure 2: Changes in the adoption proportion of TV chips by leading TV brands in 2024-2025 (Share %) Source: Omdia "TV Cost and Price Forecast Model 3Q24 Analysis - January 2025"