MStar Semiconductor, currently the world's largest vendor of TV chips, is expected to be dethroned from its top-ranking position due to recent advancement in sales gained by rivals including MediaTek and Novatek Microelectronics, according to industry sources.

MediaTek is believed to have landed TV solution orders for large-size TV and 3D TV from a number of leading TV brands, including Sharp, Skyworth, TCL, Haier, Hisense and Changhong, the sources indicated.

Additionally, MediaTek is also capable of offering chipset solutions for Internet and LED TVs, positioning itself as an integrated supplier for TV solutions, while stabilizing its income sources and profitability, added the sources.

Novatek reportedly has received verification for its TV solutions from branded TV vendors in Korea and is expected to begin volume production in the second half of 2011 at the earliest, said the sources.

Although sales of TV solutions are expected to generate revenues of NT$50-100 million (US$1.73-3.47 million) a month for Novatek initially, the new product line is expected to help improve the company's profitability over the long term, the sources indicated.

Other IC design houses including Realtek Semiconductor and Sunplus Technology are also stepping up efforts to push their TV solutions, especially in the China market, which will further weaken MStar's leading market position, commented the sources.