Tuesday, February 17, 2009

Silicon Image 10K

HDMI Market: "HDMI Licensing, LLC, a wholly owned subsidiary of Silicon Image,......As of December 31, 2008, more than 800 manufacturing companies had licensed HDMI from HDMI Licensing, LLC. .........In-Stat reports that approximately 300 million HDMI enabled devices incorporating HDMI were expected to be shipped in 2008, with over 394 million devices expected to ship in 2009 and an installed base of nearly 1.5 billion HDMI-enabled devices projected by 2010."

DVI Market: "In-Stat estimated that 15 million DVI-enabled PC devices were shipped by industry participants in 2008. Although DVI is being replaced by the more feature-rich HDMI in many applications, In-Stat estimated that approximately 118 million DVI-enabled devices were expected to ship in 2008."

Wafer supply and line width:
"Our semiconductor products are currently fabricated using 0.35, 0.25, 0.18 and 0.13 micron processes. We continuously evaluate the benefits, primarily the improved performance, costs and feasibility, of migrating our products to smaller geometry process technologies. We have conducted certain development projects for some of our customers, involving smaller geometries, namely 90 nm and 65 nm designs. We rely almost entirely on Taiwan Semiconductor Manufacturing Company (TSMC) to produce all of our semiconductor products. Because of the cyclical nature of the semiconductor industry, capacity availability can change quickly and significantly. We attempt to optimize wafer availability by continuing to use less advanced wafer geometries, such as 0.35, 0.25, 0.18 and 0.13 micron, for which foundries generally have more available capacity.

Assembly & Test: "Siliconware Precision Industries Co. Ltd., or SPIL, Advanced Semiconductor Engineering, or ASE, and Amkor Taiwan are subcontractors located in Taiwan that assemble and test our semiconductor products."

Staff: "As of December 31, 2008, we had a total of 610 employees, including 259 located outside of the United States."

Recent Legal Activity: "On June 11, 2008, Analogix filed a lawsuit in the United States District Court for the Northern District of California against the Company that alleged violations of the Sherman Act Sections 1 and 2, Cartwright Act, and Section 17200 of the California Business and Professions Code. The complaint sought monetary damages and injunctive relief. The complaint alleged that the Company, and co-defendants HDMI Licensing, LLC and Simplay Labs, LLC, conspired with the founders of the HDMI Consortium in violation of the antitrust laws. Following a mediation on November 21, 2008, the Company and Analogix entered into a settlement agreement in which they agreed to dismiss the two outstanding lawsuits between them and to release all claims. As part of the settlement Analogix agreed effective immediately, not to market or sell HDMI semiconductors worldwide that are pin- or register-compatible with Silicon Image’s HDMI-enabled products, except as necessary to fulfill certain existing customer obligations. The Company also granted Analogix a license to selected HDMI-related patents and other technology, on terms that the Company and Analogix agreed to keep confidential. In addition, Analogix dropped with prejudice its antitrust suit against HDMI Licensing, LLC and Simplay Labs, LLC."