Press Release
Sunplus And Silicon Image Align To Deliver Broad Portfolio Of Digital Media Solutions
Science-Based Industrial Park, Hsinchu, Taiwan, R.O.C. August 6th, 2003 - Sunplus Technology (TAIEX: 2401, LSE: SUPD), a leading consumer IC design company in Taiwan, and Silicon Image, (Nasdaq: SIMG), a leader in high-bandwidth semiconductor and system solutions for mass markets, today announced a strategic alliance that they believe will speed the adoption and proliferation of the popular Digital Visual Interface (DVI), High-Definition Multimedia Interface (HDMI) and Serial ATA (SATA) standards across the PC and Consumer Electronics (CE) Markets.

The partnership provides for the joint development of highly integrated, advanced System-On-a-Chip (SOC) semiconductor solutions that blend market-leading IP from the two companies with new enhancements, to deliver all-digital solutions that will yield the crystal-clear digital video and audio experience craved by consumers and afforded by pure digital systems. The innovative alliance includes a multi- phased product development schedule that benefits from standards-setting design expertise, low-cost, high-volume manufacturing efficiencies and unique combinations of highly sought after licensed technology.

The program's first phase is aimed at establishing a broad product line of integrated intelligent panel controllers that enable the highest quality visual experience for consumers of flat panel displays. Key PC OEM's acknowledge that an all-digital approach to displaying graphics on flat panel monitors provides consumers with the best visual quality and lowest total system cost. The combined development efforts of Silicon Image and Sunplus will result in a broad array of IC solutions for every type of flat panel display, delivering the promise of state-of-the-art "all-digital" viewing. PanelLink®, Silicon Image's market leading DVI implementation, will provide the critical IP core for these new solutions.

According to Ross Young, president of market research firm DisplaySearch, "DVI is well positioned to enjoy rapid growth due to dramatic increases in two of its largest target markets. The LCD monitor market is expected to rise at a 23 percent compounded annual growth rate from 49 million units in 2003 to 139 million units in 2007, overtaking CRT monitors on a unit basis in Q2 2004 and reaching 83 percent of the desktop monitor market in 2007. Furthermore, the LCD TV market is expected to enjoy even faster growth at a 49 percent compounded annual growth rate from 4.2 million units in 2003 to 31 million units in 2007."

The second phase of the alliance centers on the delivery of a full-featured SOC for DVD players, based on PanelLink Cinema™, Silicon Image's branded implementation of the new HDMI digital interface standard. Heralded by key constituents of the consumer electronics ecosystem - major motion picture producers, cable and satellite system operators, and consumer electronics manufacturers - HDMI promises to be a leading standard enabling the digital transmission and display of rich digital content among consumer electronic devices. The combination of PanelLink Cinema with Sunplus' CE IP cores is anticipated to provide a full-featured highly competitive solution for the world's global DVD player manufacturers. According to IDC, the DVD player market is expected to grow at a 29 percent compounded annual growth rate from 30 million units in 2001 to 109 million units in 2006.

Targeting another major class of consumer electronics source devices, Silicon Image will lend its market leading SATALink™ serial ATA storage IP for integration with Sunplus' optical drive technology to deliver personal video recorder applications.

In the third phase, the two companies will focus on combining the benefits of their respective core IP blocks to provide full-featured, HDMI-based, digital TV controllers for the digital television market. In combination with Sunplus' CE intellectual property, PanelLink Cinema, the leading HDMI solution for digital TVs, will also serve as the core for this new line of products.

Today, all of the top ten TV manufacturers offer televisions with the DVI interface - an early indicator of HDMI success, as DVI is a natural transition path to adding HDMI for both digital video and audio. The HDMI specification has been met with early enthusiasm with more than 35 companies signing on as adopters to provide HDMI products since its release at the end of 2002.

In addition, the alliance provides for a semiconductor supplier relationship where Sunplus will join Silicon Image's preferred list of outsourcing partners for volume production of Silicon Image semiconductors. Silicon Image's stringent quality, production and cost requirements will benefit from Sunplus' low-cost, back-end design efficiencies and high-volume IC supplier status.

"This alliance is beneficial for both companies and for consumers," said Yarn Chen, CEO of Sunplus. "By offering customers a broader range of the highest-value solutions at the lowest cost, we extend our collective product offerings while driving market adoption of the popular DVI, HDMI and SATA standards. Silicon Image continues to be on the cutting edge of digital architecture design, and we believe the combination or this robust, high-speed technology with our established core IP and manufacturing cost efficiencies will deliver unparalleled price performance to our customers, and to consumers."

According to Silicon Image CEO David Lee, "Silicon Image's high-speed serial link-based technology is established as the gold standard within its respective markets for the distribution, display, and storage of digital content. We are very pleased to join Sunplus in this significant endeavor, which will extend our technology further into the PC and CE markets and help drive the adoption of all-digital standards worldwide."

About Silicon Image
Headquartered in Sunnyvale, Calif., Silicon Image, Inc. Designs, develops and markets multi-gigabit semiconductor and system solutions for a variety of communications applications demanding high-bandwidth capability. With its proprietary Multi-layer Serial Link (MSL™) architecture, Silicon Image is well positioned for leadership in multiple mass markets including PCs, consumer electronics, storage and networking. Currently, Silicon Image leads the global PC/display arena with its innovative digital interconnect technology, and is now emerging as a leading player in the storage industry - offering robust, high-bandwidth semiconductors and systems. For more information on Silicon Image, visit