STB (set-top box) chip vendors in Taiwan, including Novatek Microelectronics, ALi and MStar Semiconductor, have all experienced a substantial increase in orders recently as the increasing penetration rate of digital broadcasts has stirred up demand for STBs in China and other emerging markets, according to industry sources.

ALi expects its revenues for the first quarter of 2012 to show a 9-17% growth as compared to the last quarter, buoyed by shipments of chips for HD STBs as well as TV chips. Additionally, ALi also looks to a gross margin of 48% in the first quarter, up from 47% in the previous quarter.

MStar also claimed that its shipments of IC parts for mid-range and high-end STBs have posted strong gains recently although STB chips account for only a small portion of its total shipments currently.