To: John Rieman who wrote (44013 ) 8/18/1999 6:54:00 PM From: DiViT Respond to of 50808
Asia major buyer of world's MPEG-2 chips UNITED STATES — Shipments of MPEG-2 silicon are expected to jump from $323 million this year to $704 million in 2002, according to research by Dataquest Inc., and Asia's electronics manufacturers are the world's major buyers. It's an extensive conversion from analog to digital technologies in consumer electronic products that is opening big markets for suppliers of MPEG chips. Mainland China makers for instance, are becoming primary purchasers of digital consumer electronics. As they have never devised analog VCRs, they immediately fit the category for MPEG-1 VCRs. The mainland is also developing a robust DVD market. ESS Technology Inc. is one maker that is benefiting from the mainland's digital production. Its new ES4108 chip, which meets the Super VCD standard for DVDs recently set by mainland China's National Committee of Standards, is a highly integrated solution that incorporates MPEG-2 video and audio, on-screen display, karaoke, system navigation software and a graphic overlay. Since the chip's introduction in October 1998, the firm has shipped more than 2 million units. ESS recently announced its second-generation integrated chip for DVD players, the Swan, that is backward-compatible with VCD and could help narrow the price gap between the mainland DVD standard and more expensive DVD players.The chip includes an MPEG-2 A/V decoder, a subpicture decoder, Dolby Digital (AC-3) audio and DVD navigation software. Japan is another lucrative Asian market for consumer electronic products, particularly DVDs and set-top-box solutions for digital-satellite reception. MPEG (Moving Picture Experts Group) is a set of standards for digital video and audio compression/decompression in a number of consumer products, including DVD, HDTV and digital cable. Currently, MPEG-2, used mainly in DVDs and digital TVs, is the in-vogue version, although a new standard is under development and is three or four years away from commercialization, according to industry analysts. asiansources.com