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Silicon Image Looks To Get Jump On High-Definition Chip Field.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| September 02, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: JAMES DETAR

As the high-definition television market gets rolling, chipmaker Silicon Image has a front-row seat.

The company helped develop the high-definition multimedia interface, or HDMI. It's the basis for a chip that speeds the flow of digital signals in consumer devices and personal computers.

Its HDMI chips are among the first to go into devices like HDTVs and DVD players. So though it faces plenty of competition, it has first-mover advantage. Demand for Silicon Image chips should surge as more people buy HDTVs and link them to other digital gear.

"As HDTV starts to roll out, there is a lot of complexity," said John LeMoncheck, a Silicon Image vice president. "Companies have to have the devices work well together."

Silicon Image has some big-name competition in the fledgling market. Zoran and Toshiba are among those either shipping or planning to ship similar chips.

They're all banking that the switch from older analog TVs to newer high-definition digital ones will pick up pace later this year.

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