Trident Microsystems Outlines its Strategy to Serve the High-Growth China Market

SANTA CLARA, Calif., March 22 /PRNewswire-FirstCall/ -- Trident Microsystems, Inc. (Nasdaq: TRID), a leader in high-performance semiconductor system solutions for the connected home, today unveiled its China strategy and outlined how it plans to help Chinese manufacturers compete in the global market as well as in the aggressive and high-volume local China market. With more than 400 million TV households, China represents the fastest-growing TV and set-top box market in the world and Trident is uniquely positioned to serve that market as a top-three industry player in both market segments.

"The China market is experiencing its second major IT revitalization and the government is spearheading major initiatives to bring digital TV and triple services throughout the region," said Sylvia Summers, CEO of Trident Microsystems. "Trident is uniquely positioned to serve this massive IT convergence because we hold the enabling technologies for both TV and STB and have strong relationships with the government, telecommunications operators and TV broadcast suppliers."

The China Market: Two Major Initiatives Underway

At a press conference today in Beijing, Trident's president Christos Lagomichos unveiled the company's China strategy to more than 25 technology and business reporters. There are two major government-funded initiatives currently taking place in China that are aimed at delivering digital TV and triple play services (voice, video, data) to households across the country. Trident's current product roadmaps and core expertise deliver the enabling technologies to address both of these markets today and in the future. Trident is the only IC supplier in the world that holds top three positions in the TV and STB markets and this technology strength and synergy can help Chinese customers win the high-volume designs.

• Direct-to-Home (DTH) – This is the first satellite broadcast network in China aimed at delivering digital TV services to approximately 200 million users across the region, including remote areas without cable.   Trident is one of three STB silicon providers chosen to deliver the MPEG solution for the initial DTH phase, which represents approximately 9 million units.
• Next Generation Broadcasting – This is a government-funded initiative to construct a new converged Infrastructure throughout China.  Services to be offered include interactive TV (video on demand, pay-per view), videophone, streaming music and video, and broadcast TV, among existing services in today's telecom and Internet markets.  Given the number of households in China, NGB will provide enormous revenue/growth opportunities for local operators, manufacturers, content providers, etc.   Trident's DTV and STB roadmap, which include the industry first 45nm designs, are NGB ready today and the Company is working with local Chinese manufacturers to ensure they continue to meet the requirements in the future.

Added Christos Lagomichos, president of Trident "As demonstrated today in our Beijing press conference, Trident is committed to the China market. We are in a position to help local companies compete globally and locally by offering the best STB and TV technologies in the industry and delivering strong local support with global resources. We look forward to working with our many customers in China and helping them succeed in the future."

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Santa Clara, California, is a leading force in the digital home entertainment market, delivering an extensive range of innovative multimedia semiconductor solutions for digital televisions and set-top boxes — at the heart of today's digital home. Trident has been making bold moves to expand its market, deepen and more fully leverage its Intellectual Property (IP) portfolio, and drive the evolution of the "connected home." Its acquisition of NXP Semiconductors' set-top box and television product lines in 2010 establishes Trident as one of the top three semiconductor providers to both the TV and set-top box markets. For further information about Trident and its products, please consult the Company's web site: http://www.tridentmicro.com.

Forward-Looking Information

This press release contains forward-looking statements concerning our ability to serve the growing Chinese TV and STB markets, the capabilities and functionality of our products and the benefits our products will provide to our customers, particularly in China.  These forward-looking statements are subject to certain risks and uncertainties, and actual results could vary materially depending on a number of factors. These risks include, the rate of growth of China's TV and STB markets, the timing of product introductions, the ability to obtain design wins among Chinese OEMs and manufacturers for Trident's products, and competitive pressures, including pricing and competitors' new product introductions, the impact of the uncertain global macroeconomic environment, and the increasingly competitive DTV market. Additional factors that may affect Trident's business are described in detail in Trident's filings with the Securities and Exchange Commission available at http://www.sec.gov.  Such forward-looking statements should not be relied upon as representing Trident's views or expectations as of any subsequent date and Trident does not undertake any obligation to revise or update any such forward-looking statement to reflect events or circumstances that may arise after the statement was made.

NOTE: Trident is a trademark of Trident Microsystems, Inc. All other company and product names are trademarks and/or registered trademarks of their respective owners. Features, pricing, availability and specifications are subject to change without notice.

SOURCE Trident Microsystems, Inc.