The Standardization Administration of the Peoples Republic of China (SAC) yesterday issued national standards for terrestrial DTV set-top boxes and embedded terrestrial DTV receivers. The standards allow manufacturers to use either China's indigenous Audio Video Coding Standard (AVS) or MPEG-2 standard for the first year after the regulations go into effect, after which devices must support AVS.
To date, seventeen overseas and domestic manufacturers have produced chipsets that support AVS, including domestic manufacturers Spreadtrum Communications (Nasdaq: SPRD), Hangzhou NationalChip Science & Technology, Celestial Semiconductor, and Haier (Beijing) IC Design, Taiwanese manufacturers MStar Semiconductor and Ali Corporation, US manufacturer Broadcom, European manufacturer STMicroelectronics, and Japanese firm Fujitsu.
AVS headend encryption equipment manufacturers include National Source Coding Center Advanced Video-Audio Processing Technology, Shanghai GMT Digital Technology, U.S. firms Envivo and Telarity, and German manufacturer EDBox.
Over 50 companies manufacture AVS-enabled terminals such as digital TV sets and set-top boxes, inlcuding Changhong (600839.SH), TCL Corporation (000100.SZ), Hisense (600060.SH), and Skyworth (0751.HK).