The digital set-top box and digital TV semiconductor market will grow from $3.1 billion in 2003 to $9.3 billion by 2008 – a healthy 25% CAGR, according to IDC. Although the market for low-end digital set-top box semiconductors is maturing, IDC is seeing a rapid transition toward higher-end designs which support advanced functionality such as digital video recording and high definition. However, a majority of this growth will be driven by digital TV.