Us Firm Set To Launch Video Cd Decoders

The $2 billion National Semiconductor Corporation of the US, which recently acquired Mediamatics Inc, a company founded by US-Indians, plans to launch its video CD decoders in India and locally manufacture satellite receivers for direct-to-home (DTH) market.

The US company is eyeing Tata Information Systems Ltd (TISL) for an OEM partnership for making digital video decoders and PCI cards in India. National Semiconductors, a world leader in analog-based components, PC and mobile communication products, already has a centre at Bangalore which conducts chip design and other development work.

Through Mediamatics Inc, the US company also intends to enter into the DTH segment by manufacturing satellite receivers, also known as set-top boxes. By leveraging on this design centre, the US company hopes to make a long-term commitment in India. Further, it also plans to source its software needs for its chips from local developers.

 

Mediamatics Inc, founded by US-based Indians in 1992, is among the largest suppliers of moving pictures expert group (MPEG) decoders.

It produces MPEG/DVD (digital versatile disk) products that supports video CDs, besides audio hardware and software solutions for consumer, PC and other markets.

According to Hemant Bheda, vice-president and founder of Mediamatics, since the company had IBM as its OEM partner in the US, TISL in India could become its natural ally for making digital CD decoders. However, he added that the company was also looking at Wipro and HCL-HP in this regard.

Mediamatics products are licensed by Microsoft, Compaq, Philips, Texas Instruments and Toshiba.

Although China has a better CD market, National Semiconductors has preferred India for its expansion and diversification plans because of its wholly owned subsidiary Mediamatics, Bheda said.

China mostly sources its video CD add-on cards from Malaysia at $50 a piece. When produced in India, it should cost even less, he felt.

He expects India to play a leading role in the future of video CD suitable for both PC and AV (audio-video players). Indian content providers produce over 1500 of the total 7000 video CD titles available worldwide, he said. Besides entertainment, video CDs are also targeted for education and business applications.