Mstar Semiconductor, CeRoma Team Up on Digital TV Chip Biz

Taipei, Jan. 9, 2006 (CENS)--Taiwanese fabless house Mstar Semiconductor Inc. recently entered into alliance with CeRoma Semiconductor of Israel to tap the world market for digital television chips.

Taiwanese industry watchers expect the cooperation to pose a great threat to MediaTek Inc., currently Taiwan' s No. 1 supplier of the chips.

Wayne Liang, Mstar' s chairman, pointed out that the teamwork allows the two companies to fully exploit the advantage of complementing each other, with Mstar specializing in back-end chips while the Israeli fabless house dedicating to front-end chips for the TVs. After combing the two chips to constitute a complete solution, the two companies will put their own brand names on the solution in their respective markets.

The sales are expected to become a major force behind Mstar' s revenue increase planned for this year.

Mstar has recently snatched up increased share of Taiwan' s market for control chips for liquid-crystal displays (LCDs) and become the most profitable fabless house in Taiwan' s unlisted securities market. In 2005, the company earned NT$50-NT$60 (US$1.56-US$1.87 at US$1:NT$32) per share.

On Taiwan' s listed market, MediaTek is currently the most profitable design house. The company' s chairman, M.K. Tsai, pointed out that chips for mobile phones and digital TVs would replace chips for personal computers as the most potential semiconductor products over the next three to five years.

MediaTek has planned to begin delivering digital-TV chips in the second quarter next year and ramping up the deliveries in the second half next year. The company has considered the chip a profitable product from its expensive prices.

CeRoma was established in 2005 and has focused on home-entertainment and consumer markets. Its has adopted ARM Ltd. Of England' s processor solution in its chips.