1997-08-30 , ESC-9733

At the IFA consumer electronics exhibition in Berlin on Saturday 30 August, Arthur van der Poel, Chairman and CEO of Philips Semiconductors, said that the company had developed a breakthrough in videophone technology that would enable high quality videophones to be made for the home.

"The problem with home videophones up to now is that they have provided such poor quality, jerky images that people did not want to buy them. The only alternative was expensive equipment and special phone lines. Our new technology is based on a revolutionary new computer chip that we have created, called the TriMedia processor, that is so powerful that it can handle simultaneous video, sound and communications on its own. The powerful video manipulation capabilities of the TriMedia processor will be the foundation for a whole new generation of consumer multimedia products."

"At last, videophones can be made for the home user at a reasonable price that will deliver a far better level of sound and video over normal phone lines, enabling the domestic videophone market to take off. We are already shipping to manufacturers of videophones who should have them in the shops before Christmas."

"Another TriMedia-based product, which is also due before Christmas, is a card to add into a standard PC that will enable people to edit home videos and even send video clips over the Internet via e-mail."

A third major product area is Digital TV. The new generation of Digital TVs with TriMedia processors will be able to provide wide-screen, high-resolution pictures and multi-speaker sound that is as good, if not better, than the cinema. The viewer can even select from a choice of viewing angles broadcast by the TV station. The TriMedia-enabled Digital TV can also provide additional services such as videos, web browsing, e-mail capability, and interactive games. These TVs will be available in the shops by 1998 in the USA, which is leading in the defining of Digital TV broadcast standards. Versions for the rest of the world will follow as standards are defined for each country.

"The important aspect of using the TriMedia processor is that new software can be added to a product in the same way that new programs are added to a PC," Arthur van der Poel explained. "This makes TriMedia-enabled products future-proof as new services and features can be easily implemented. It's a major breakthrough in technology that gives amazing FLEXibility and performance so that 'science fiction' products can be made today."

He also covered the leadership position of Philips Semiconductors in the global semiconductor market. "Philips Semiconductors is the largest European Semiconductor company and ranks ninth biggest in the world," he said. "Philips was one of the pioneers in semiconductor manufacturing. Within a few years after the transistor was invented, Philips was in volume production before any other of today's top-ten semiconductor companies. This is a leadership position that we have maintained through the years with countless innovations. For example, our single-chip solution for TVs is used in over 40% of TVs made in the world today; 50% of telephone products use one of our line-interface ICs; and, as one of the pioneers of teletext, we have just shipped our 100 millionth teletext decoder IC."

"Working closely with customers is one of the keys to our success. And identifying the right 'Stardust Plus' companies to partner with is one of our skills that we cherish partnering with those new companies among the myriad of start-ups with the energy, drive and imagination to become larger companies."

He also discussed the change in business strategy of the company. Instead of relying on internal resources, the company is now actively teaming up with other companies to find faster ways to solve the challenges of today's rapidly changing world. He described this as a paradigm shift from 'Only Invented Here' to 'Proudly Found Elsewhere.'

His conclusion was that Philips Semiconductors has a bright future of leadership and innovation ahead and will continue to be one of the pioneering semiconductors companies, creating products that will touch and improve people's lives all over the world.

Philips Semiconductors, a division of Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world. Philips Semiconductors' innovations in digital audio, video, and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by systems labs

TriMedia is a trademark of Philips Electronics NV.