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MediaTek Licenses Silicon Image's Proven HDMI Technology
SUNNYVALE, Calif., February 10, 2004 — Silicon Image, (Nasdaq: SIMGE), a leader in multi-gigabit semiconductor solutions for the secure transmission and storage of rich digital media, today announced that MediaTek has licensed its proven High-Definition Multimedia Interface (HDMI)-compliant PanelLink Cinema™ transmitter technology for integration in their system-on-chip (SoC) solutions for the consumer electronics market. MediaTek is the leading supplier of consumer-use DVD controller chips with over 50 percent global market share and one of the world's top 5 fabless IC design companies.
With its all-digital quality and single cable for uncompressed high-definition video and multi-channel audio, HDMI is being rapidly adopted in consumer electronics devices. The availability of cost-effective HDMI source devices is key to widespread HDMI adoption. By integrating HDMI into their market-leading DVD chipsets, MediaTek is in a strong position to enable the low-cost HDMI DVD player and DVD recorder markets-allowing DVD manufacturers to quickly populate the market with affordable HDMI-enabled systems. MediaTek is committed to supplying more than 15 million SoCs with HDMI capability to the DVD market by late 2005. "We provide a patent-pending, progressive scan algorithm: MDDi™ (Media Direct De-Interlacing) technology that delivers superior video quality to the end users, and our customers look to MediaTek to provide high-quality, fully featured SoC solutions at a low cost," stated Vincent Huang, vice president and general manager of Digital Consumer Product B.U. at MediaTek. "Silicon Image is the only company with production-proven HDMI solutions and the undisputed market leader. By licensing Silicon Image's proven HDMI technology, we will be able to quickly and easily integrate HDMI functionality into our market-leading DVD controller chips. Our customers, in turn, will be able to quickly bring to market HDMI-enabled DVD players and recorders to meet the growing consumer demand for this exciting new interface." "We are excited to be working with DVD chipset market leader MediaTek to supply the market with cost-effective, high-quality HDMI solutions and quickly drive HDMI adoption on a global scale," stated John LeMoncheck, Silicon Image vice president of consumer electronics products. "MediaTek's product performance and focus on quality and service make them a tremendous presence in whatever market they serve. We are pleased they are committed to quickly bringing the benefits of HDMI to the masses using our proven PanelLink Cinema transmitter technology." IP licensing is part of Silicon Image's overall strategy to leverage its core HDMI, Digital Visual Interface (DVI) and Serial ATA technologies into market segments the company does not target directly. An HDMI Founder, Silicon Image remains the only supplier with HDMI silicon in volume production. Silicon Image's PanelLink Cinema™ HDMI silicon has been incorporated in more than 100 different consumer electronics products from leading manufacturers. Featuring an extremely flexible, uncompressed audio and video interface, Silicon Image's HDMI-compliant PanelLink Cinema technology is designed for consumer electronics products that transmit or receive premium digital content. This technology has undergone extensive verification testing and offers the advantage of being proven interoperable with other HDMI products currently on the market. In addition, Silicon Image's HDMI technology features integrated HDCP capability-the technology endorsed by major motion picture studios, satellite operators and CableLabs-for secure transmission of high-value content. The DVD CCA has also approved HDMI with HDCP for CSS content playback on DVD players. About Silicon Image Headquartered in Sunnyvale, Calif., Silicon Image, Inc. designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability. With its proprietary Multi-layer Serial Link (MSL™) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics and storage. Currently, Silicon Image leads the global PC/display arena with its innovative digital interconnect technology, and is now emerging as a leading player in the consumer electronics and storage markets by offering robust, high-bandwidth semiconductors. For more information on Silicon Image, visit www.siliconimage.com This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to anticipated adoption of standards, anticipated demand for Silicon Image technology, anticipated benefits of using Silicon Image technology, anticipated introduction of products incorporating Silicon Image technology, anticipated size of the market and the growth of market opportunities for products that incorporated Silicon Image technology, and Silicon Image's position as a market leader. These forward-looking statements involve risks and uncertainties, including those described from time to time in Silicon Image's filings with the Securities and Exchange Commission (SEC), that could cause the actual results to differ materially from those anticipated by these forward-looking statements. In particular, standards may not be adopted at the rates anticipated, Silicon Image technology may not produce the anticipated benefits, demand for Silicon Image technology may not develop as anticipated, market size and opportunities for products that incorporate Silicon Image technology may not grow as anticipated, and such products may not be released when expected or at all, and Silicon Image may not achieve or retain market leadership status. Also see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Factors Affecting Future Results" in the most recent Annual Report, Form 10-K or 10-Q filed by Silicon Image with the SEC. Silicon Image assumes no obligation to update this forward-looking information. About MediaTek MediaTek Inc. is a leading provider of total solution for optical storage and digital consumer semiconductor. Founded in 1997 and headquartered at Hsinchu Science Industrial Park, Taiwan, MediaTek is now one of the world's top 10 IC fabless companies and the world's largest chipset supplier of CD-ROM, DVD-ROM, CD-RW, Combi and DVD player. MediaTek's patent-pending, progressive scan algorithm: MDDi™ (Media Direct De-Interlacing) technology delivers superior video quality to the end users. The MDDi™ technology utilizes an intelligent link between MPEG decoder and embedded progressive scan processor. It can reproduce the most accurate pictures from DVD movie discs. DVD players that contain the MDDi™ technology can be identified from the MDDi™ logo on the product. The Company's common stock is traded on the Taiwan Stock Exchange under the code "2454". For more information, please visit the Company's web site at www.mtk.com.tw.
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