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ATI Strengthens Digital Television Market

MARKHAM, Ont. ? ATI Technologies Inc. announced plans to acquire Terayon Communication Systems Inc.?s cable modem silicon intellectual property for US$14 million and hire approximately 25 employees from Terayon?s design team.


The acquisition will extend ATI?s product and technology range and provide for one-stop-shopping for the value-added silicon in next generation digital televisions, said ATI in a release.
 The explosion of digital cable ready (DCR) HDTV products on North American store shelves reflects consumers? desire to enjoy movies by directly connecting their television sets to the cable system without a separate set top box. Adding cable modem technology enables cable TV operators and TV manufacturers to offer key features such as video on demand, electronic program guide, and completely new interactive services. LG and Samsung demonstrated Interactive DCR products at this year?s Consumer Electronics Show.
 ?ATI is the leading supplier of silicon in HDTVs,? said Geoff Phillips, vice-president and general manager of the digital television business unit at ATI. ?This acquisition of Terayon?s field-proven IP cements our lead as the industry moves to Interactive digital cable ready technology, and keeps us at the cutting edge of DTV development,? Phillips said.
 ATI has shipped over five million digital television chips in 2004 to consumer electronic companies including Sony, Samsung, and Mitsubishi.