Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
The Genesis Of High Margins
STMicroelectronics’ acquisition, Genesis Microchip, is expected to result in a unified, high margin, digital chip-set next year.
“The Genesis acquisition is a natural strategic fit because of the complementary technologies, image quality and image coding”, says Tommi Uhari, executive vice president at ST’s mobile, multi-media and communications group.
“ST is a leader in set-top box compression/decompression technologies and front-end processing technologies in digital TV”, says Uhari, “Genesis is a leader in back-end image processing, video quality and digital interconnect technologies.”
“There’s a fast growing digital TV market”, adds Uhari, “image quality and video processing are where the Genesis technology is leading, whereas ST does decoding and compression. Putting those together creates higher value for the digital TV, and also grows margins to the level where we like.”
“We are merging the IP of Genesis and ST so that, in 2009, we will have a combined product offering,” says Uhari.Tags: acquisition, complementary technologies, digital chip, genesis technology, image processing