Broadcom is forecasting busy times for 4K in 2016

by on April 23, 2015

Stephan Jukic – April 23, 2015

System-on-a-chip maker Broadcom, whose technology is one of the cornerstones of 4K graphics processing in an assortment of existing and upcoming display related devices, is forecasting a strong future for 4K technology in 2016 and beyond.

The company made these predictions at a recent conference to analysts about its Q1/2015 results announcements and also told these analysts that the company is already experiencing some very strong growth indicators for its ultra HD and HEVC chip systems.

According to CEO Scott McGregor, Broadcom’s UHD and HEVC 4K video compression solutions “are still in the early adoption phase and are expected to drive growth for many years to come”.

HEVC is the video encoding and compression technology used by many TV manufacturers and content providers as well as by 4K set-top box makers to more easily transmit 4K video after it has been compressed to a manageable size from its raw data heaviness.

McGregor also explained that the North American market was growing more slowly than anticipated due to merger problems between several large MSOs, which are creating hesitation in 4K related data technologies. However, he also added that there was indeed wide growth in other markets for 4K and HEVC related technologies.

As broadcasting in 4K ultra HD becomes more popular, Broadcom's HEVC related technologies will gain importance

As broadcasting in 4K ultra HD becomes more popular, Broadcom’s HEVC related technologies will gain importance

Furthermore according to the Broadcom CEO, this merger related delay in North American market growth is likely to be a net benefit for Broadcom because it will enable these operators to emerge stronger and more secure about the products that are being created around the concept of faster HEVC and 4K as a whole.

He also said that this would give Broadcom an opportunity to have higher prices on their boxes moving forward. In other words, while the U.S market is currently in a bit of a 4K pause, with losses being offset by growth in other markets, it’s going to move forward strongly in a positive way.

Furthermore, the Broadcom CEO expects that the timetable in which major business comes starts coming to their 4K chipsets is looking good. According to McGregor, any company which wants to win at a design today has to have a leading product that incorporates HEVC and 4K technologies, and all the designs and decisions currently being made about platforms and architectures are based on strengths in these HEVC/4K spaces. Because Broadcom is one of the first companies to have developed innovations in these areas, this has and will continue to win them a lot of the next generation of 4K business in 2015, 2016 and beyond.

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