Xilinx in the Consumer Digital Video Domain

Flat Panel Display (FPD) industry has achieved sufficient critical mass for its growth to explode. Thus, it can now attract the right blend of capital investments and R&D resources to drive technical innovation toward continuous improvement in view quality, manufacturing efficiency, and system integration. These in turn are sustaining consumer interest, penetration, revenue growth, and the potential for increasing long-term profitability for industry participants. CIBC believes that three essential conditions are now converging to drive the market forward. They are: • The technological and commercial readiness of FPDs • Substantial capacity investment • Lower end-selling prices Competition in the display industry will intensify due to innovations and technological breakthroughs. Dataquest estimates that about 7 million flat panel TVs were produced in 2002. Production will exceed 8 million in 2003 and is expected to reach 13 million in 2007, with Japan and AsiaPac being the major production bases. LCD TV production in AsiaPac has surpassed that in Japan, and plasma TV production will also be relocated to there for cost reduction.