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Technology Stocks : C-Cube
CUBE 37.04+2.1%3:48 PM EST
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To: matthew david who wrote (12745)4/5/1997 1:34:00 PM
From: John Rieman   of 50808
 
And don't forget to visit Odeum.......................................

Hyundai steals march on other DVD-chip makers

By David Lammers and Junko Yoshida

MILPITAS, Calif. -- U.S. ASIC companies that think they have the DVD-chip market sewn up may need to think again. The first-generation digital-videodisk players that will debut this fall are based on low-integration, proprietary chip sets developed by the Japanese consumer-products giants. Those companies have been working closely with U.S. ASIC houses on next-generation chip sets that would cut the cost of controller boards. But it now appears that even before the first-generation DVD players and ROM drives hit the shelves, Hyundai Digital Media (HDM; Milpitas) will have completed a second-generation, one-chip DVD solution that will cost less than $45 in volume.

The division says the new chip could help undercut the cost of first-generation DVD players, which are expected to retail for $500 or more.

The rush to bring DVD systems to market is keeping the ASIC companies largely out of the game until the second round, industry watchers noted. Developers of first-generation DVD systems--including Toshiba, Philips, Matsushita and Sony--have built joint-development relationships with the strongest U.S. ASIC houses. But to meet their shipments schedules, the consumer companies had to build their first-generation boxes around chip sets developed in-house.
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