The BF-3366 from Taiwan’s Bafo is an HDCP encryption-compliant HDMI splitter that works with set-top boxes, high-definition DVD players, D-VHS and other HD devices.

1x4 HDMI splitters, DVI-to-HDMI and mini HDMI-to-HDMI adapters to dominate splitter and adapter
supply markets in 2008

The young manufacturing industry for HDMI splitters and adapters in mainland China and Taiwan is expected to continue growing as makers join the HDMI bandwagon. Taiwan is currently a powerhouse in HDMI adapter production, serving as home base for 29 member companies of the HDMI Licensing LLC. Mainland China’s supplier bases for splitters and adapters are currently small, but newcomers are projected to help boost the supplier population, and consequently production, in the coming months.

Despite interoperability and compliance issues that plague some suppliers, companies in Taiwan and mainland China generally agree that demand for HDMI products has been on an uptrend, boosted by strong adoption in digital TVs, high-definition DVD players and high-end PC monitors and applications. Many suppliers see HDMI switches and cables as the most promising lines for high-definition PCs, but splitters and adapters will continue to be produced nevertheless to meet demand in some niche markets such as advertising. Currently available splitters comprise 1x2, 1x3, 1x4, 1x6 and 1x8 models, with 1x4 splitters most likely to prevail this year. In the adapter sector, DVI-to-HDMI and mini HDMI-to-HDMI adapters will continue to be mainstream in 2008.

Estimates from HDMI Licensing LLC indicate more than 700 consumer electronics and PC manufacturers adopted the HDMI specification in 2007, clearly establishing HDMI as the world standard for high-definition digital connectivity. In addition to TVs, set-top boxes, DVD players and AV receivers, the game console and PC markets have also become popular applications for this specification.

In-Stat forecasts that there will be nearly 200 million devices with HDMI shipped in 2008 and nearly 1 billion HDMI-enabled devices would be produced by 2010 with an annual growth rate exceeding 70 percent. Studies from the market research firm report that digital TV is the major application for HDMI devices, although HDMI adoption in PCs is also expected to have notable growth by 2010. For computers, high-end graphic cards, monitors and motherboards are all adopting the HDMI interface. According to IDC, HDMI in notebook and desktop PCs is estimated to surpass 36 percent by 2010.

Improvement in picture quality and freedom from the use of cables are two of the driving forces behind the strong adoption of HDMI. The HDMI interface integrates A/V functions, therefore reducing the number of cables used in comparison with other standards. One digital HDMI cable can replace up to 11 analog cables. HDMI also supports up to 1080 pixel and 1440 pixel resolution, 120Hz refresh rate, 16-bit color depth and up to eight audio channels at 192kHz.

	Taiwan’s HPC offers this HDMI/M-to-DVI/F adapter, which features HDCP compliance and 480i, 480p, 720p, 1080i, 1080p resolutions.

HDMI’s wide range of applications has created a huge market for HDMI products, including HDMI splitters and adapters. These two categories account for about 10 to 20 percent of the total number of HDMI products worldwide.

Mainland China’s industries for HDMI splitters and adapters have been growing at an annual rate exceeding 50 percent in recent years. Makers expect the uptrend to continue through 2010 as updates on finished products further increase demand for HDMI splitters and adapters. These products are estimated to account for 10 to 20 percent of the mainland’s total HDMI sales.

Mainland China currently has more than 1,000 suppliers of HDMI products, of which 30 percent are foreign-owned. Suppliers of HDMI splitters and adapters number only about 50, but most of these companies are locally owned, indicating growing support for homegrown technologies and products. About 10 makers are large-volume suppliers with a monthly production capacity exceeding 10,000 units. Companies expect production to start growing with the entry of newcomers and existing companies’ expansion plans.

As costs of raw materials rise further, more companies said they will concentrate on improving production efficiency to keep their product prices stable in 2008.

In Taiwan, there are about 30 makers of HDMI products, including switches, cables, splitters, adapters and matrices. According to HDMI Licensing, Taiwan is home to the largest manufacturing base for HDMI adapters, with 29 of its member companies based on the island. The major production center in Taiwan is in the north, including Taipei and Taoyuan. Manufacturers are mostly small and medium-sized companies that generate most sales from OEM and ODM business.

	Taiwan’s A&H offers the HSP102, a 1x2 HDMI splitter that features two asynchronous HDMI outputs and output auto switching.

The most popular types of HDMI splitters available in mainland China and Taiwan are 1x2, 1x3, 1x4, 1x6 and 1x8 models. Makers agree that 1x4 splitters will capture the mainstream in 2008.

Most mainland China makers are looking to boost their production capacity for HDMI splitters and adapters. Shenzhen-based CMI Communications Ltd can churn out 20,000 to 30,000 HDMI splitters and adapters every month. The company plans to increase its production by 50 percent in 2008, especially for its new line of products such as the HTM0402 HDMI matrix.

CMI Communications offers the HTM0402 splitter, which can connect four HDMI signal input sources and two HDMI sinks. It supports HDMI 1.3 deep color signal for true matrix output, manual or remote operation, and signal source selection with priority order. It also supports 2.25Gbpsx3 data rate, HDCP 1.2 and 800mA maximum operating current. It complies with RoHS and CE.

Shenzhen East-Toptech Electronic Technology Co. Ltd offers 1x4 and 1x8 HDMI splitters and HDMI-to-HDMI adapters. All its HDMI splitters are exported and comply with RoHS.

Hinen Electronics (Shenzhen) Co. Ltd offers a series of HDMI splitters and adapters. The company said that its 1x8 HDMI splitters, which enjoy a favorable response overseas, feature 8s installation time, eight identical HDMI outputs, HDCP compliance and large distribution achieved through a cascading design. Hinen currently has a production capacity of 5,000 HDMI products per month and plans to increase capacity this year to prepare for more orders.

Prices of HDMI splitters and adapters in mainland China dropped 10 to 20 percent over the last 12 months, particularly for older models. Makers expect further price reductions alongside rising demand, but anticipate that the rising costs of raw materials could have a slight impact on product prices. Low-end models of HDMI splitters are priced starting at $30 each. Unit export prices of midrange and high-end HDMI splitters start at $100 and $150, respectively.

Taiwan’s HPC Technology Inc., which specializes in cables, sees a 200 to 500 percent growth in its HDMI splitter shipment volume this year. It currently offers 1x2, 1x4 and 1x8 splitters. The company can produce 10,000 HDMI splitters a month and ships 5,000 to 10,000 units monthly. Its splitters are mainly used for retail advertising and surveillance applications.

A&H Information Co. Ltd supplies HDMI Media One (HMO) and HDMI matrices, switches, splitters and cables.

	The BF-3311 HDMI single-link extender adapter from Taiwan’s Bafo supports high-definition digital data over HDMI cables.

DVI-to-HDMI and mini HDMI-to-HDMI adapters were the most popular models in 2007, and are expected to continue to be the mainstream in 2008. HDMI Type-A female to Type-C male transfer adapters are forecast to be popular. In mainland China, makers offer female and male adapters with HDMI-to-HDMI or DVI-to-HDMI support. Mainland makers price their low-end HDMI adapters starting at $15 each. Midrange adapters list at $30 each, and high-end models are priced at $100 per unit.

Taiwan’s Neostar Technology Co. Ltd offers HDMI adapters for DVI and mini HDMI support. The company’s vice sales manager, Howard Chen, said that HDMI cables are the most promising item for HDMI products, but that adapters have a strong growth potential. The company has a monthly production capacity of 30,000 HDMI adapters and a monthly output of 10,000 units. Chen expects the market to boom further this year, so prices will remain competitive. Neostar sells its products mainly to distributors.

HPC has the capacity to make 150,000 HDMI adapters a month, with actual monthly output at 5,000 to 10,000 units. The company also offers HDMI cables, switches, repeaters and matrices. All of its HDMI products are manufactured in Taipei and Shenzhen, Guangdong province.

HPC predicts that its shipment volume for HDMI adapters will increase to 62,000 units a month this year. HPC has been producing HDMI products since 2003. Its product portfolio includes wireless HDMI modules with 10m to 15m transmission range and Type-A and Type-C HDMI cables. HPC forecasts that as more DV camcorders incorporate the Type-C mini connector, sales of Type-C HDMI cables will also increase.

For its HDMI cables, the company uses a variety of materials. It offers tin-plated copper with one layer of braid-shield wire and silver-plated copper with two layers of braid-shield wire with a 24K gold-plated connector. HPC also offers a variety of wire jackets for texture and housing design, as well as high-end metals and various colors for the outer molding of its connectors. The company also offers mesh nets for its HDMI wires.

Bafo Inc. can produce 10,000 HDMI adapters, 10,000 HDMI splitters and 300,000 HDMI cables a month. Its HDMI product range, which comprises cables, adapters, switches, splitters, repeaters, extenders and matrices, accounted for 30 percent of sales in 2007. The company expects the line’s share of sales to climb to 40 percent this year. Bafo has two factories in Dongguan, province, and R&D operations in both Taiwan and mainland China. Bafo also has more than 25 years of experience in manufacturing cables and computer peripherals, with strong in-house production capability in copper twisting, cable extrusion and cable assembly.

	Taiwan’s HPC has developed this HDMI/F-to-DVI/M adapter, which supports 480i, 480p, 720p, 1080i, 1080p resolutions and features a tin-plated copper conductor.

HDMI Licensing forecasts that all HDMI products will transition to HDMI 1.3 by the end of 2008. The HDMI 1.3 standard, released in June 2006, promises double bandwidth to deliver even higher video and audio quality.

The standard supports Type-C mini connectors for connection with digital cameras and camcorders. Type-C mini connectors feature thinner, shorter and narrower form factors than the existing regular Type-A connectors. HDMI 1.3 provides faster response time and refresh rate in video displays, which are especially suitable for PC gaming. The standard also allows for a smoother motion with an LCD refresh rate of up to 120Hz to reduce motion blur. For better audio, HDMI 1.3 supports Dolby TrueHD and DTS-HT Master Audio formats for high-quality playback of Blu-ray and HD DVD audio.

HDMI 1.3 is already being adopted by several makers in both Taiwan and mainland China. Mainland China adopters support HD 1080p resolution on their HDMI 1.3 products. Some companies in Taiwan said that makers on the island have been shifting to HDMI 1.3 since H2 2007.

In the meantime, a few suppliers also see DisplayPort as being increasingly pursued by some. Bafo, for instance, plans to release DisplayPort-related products in H1 2008. The DisplayPort standard, whose version 1.1 was approved in April 2007, defines a new license-free digital A/V interconnect for use primarily between a PC and a monitor or a PC and a home theater system.

All makers interviewed export almost 100 percent of their HDMI products. Since most HDMI products are made for export, makers ensure product quality by sourcing their production and testing equipment from overseas suppliers. All ICs and some of the raw materials used are imported.

Taiwan’s Bafo exports its HDMI products to North America, Western Europe and Eastern Asia, and mostly as OEM or ODM orders. All of Neostar’s HDMI products are exported to Europe. HPC exports 80 to 90 percent of its products to Singapore, Japan, North America and Western Europe.

The major export destinations for mainland makers include Europe, Eastern Asia and North America. OEM and ODM services account for 30 to 60 percent of interviewed companies’ sales.