HDcctv Alliance Announces Surveillance Equipment Chip Makers to Invest US$30m in HDcctv Compliance

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HDcctv Alliance chip-maker Member companies commit more than US$30m to deliver chips for HDcctv-compliant surveillance equipment in the coming year.

Exhibit 1

We’re working to help makers’ executives appreciate that everyone – customers, installers, and competing manufacturers alike – benefits from the interoperability that HDcctv compliance certification ensures.

HD surveillance equipment industry association, the HDcctv Alliance, today announced that four of its industry-leading semiconductor Member companies have committed more than thirty million US dollars towards the development, manufacture, and marketing of chips that will enable HDcctv-compliant equipment.

HDcctv camera and DVR sales have grown from no units sold in 2009 to over 150K units sold in 2012. Continued growth demands 100% multi-vendor interoperability, which HDcctv compliance certification ensures. EqcoLogic, Eyenix, Nextchip, and Semtech today revealed the rollout timeline for ten newly designed chips for cameras and DVRs that will facilitate HDcctv compliance certification. These chips, scheduled to be in the hands of CCTV equipment designers in 2013, will make it more likely that HD surveillance equipment can be certified HDcctv compliant and will interoperate freely out of the box.

Availability of chips implementing the HDcctv standard accelerates the HD surveillance market

Conventional CCTV systems are designed by security installers, who mix and match surveillance products made by various manufacturers. Time spent adjusting cameras and DVRs to begin capturing video is part of an installer’s costs. If HDcctv cameras and DVRs do not work together straight out of the box, the installer’s costs go up.

HDcctv compliance ensures that products from various manufacturers will interoperate upon power-up. Compliance certification is important to installers and manufacturers alike. For installers, the compliance mark in a product brief means plug-and-play, which holds down costs. For manufacturers and their OEM customers, compliance certification means fewer no-fault-found returns, which increases profit.

To be certified HDcctv compliant and eliminate any doubts about transmission performance and interoperability, a camera or DVR must implement certain functions. Because the chips that power today’s HDcctv products were designed before the HDcctv 1.0 standard had been defined, they did not necessarily have the functions embedded that are required for compliance certification. This means that a large proportion of Generation 1 HDcctv cameras and DVRs cannot be certified compliant. A timeline of HDccdtv Standard Maturation Milestones, Exhibit 1, suggests that the impact of the HDcctv standard should become visible in the surveillance camera market during 2013.

HDcctv equipment buyers will benefit from Generation 2 HDcctv chips implementing the functions needed for compliance certification. The ten Generation 2 semiconductor products listed in the timeline represent a total investment in chip design, semiconductor manufacturing ramp, and customer assistance that exceeds thirty million U.S. dollars.

Quotes from Industry Leaders

“Early on, we delivered chips that made it easy for development teams to migrate CCTV cameras and DVRs to high definition, but it took three years for most of the world’s CCTV equipment factories to produce at least one Generation 1 HDcctv model,” observed Don Shaver, Semtech marketing director. “As a founder and Steering Member of the HDcctv Alliance, Semtech has led the HDcctv standard definition process. Semtech’s GV7601A is the industry’s first fully integrated receiver that implements extended reach (XR) capability. GV7601A and other Generation 2 products targeting HDcctv compliance will impact the end market more quickly than Generation 1 products have, because security installers are seeing the simplicity of HDcctv and have experienced high-quality HDcctv live views for themselves.”

“We recognized the potential for the HDcctv market very early,” commented Hweihn Chung, Nextchip R&D director. “Too early, in that we weren’t able to provide for HDcctv compliance in NVP2400. We are excited that our NVP2410 chip (‘Eagle2’) – already on our customers’ lab benches – can implement pathological test pattern generation, CRC, StreamID, and so forth. This means Eagle2-based HDcctv cameras will pass all HDcctv compliance tests, provided that the camera-internal electrical pathways are implemented correctly.”

“Interoperability among manufacturers’ equipment is essential for the HD surveillance market to reach its growth potential,” observed Peter Helfet, CEO of EqcoLogic. “EqcoLogic has a track record of leading the development of standards, and we are proud to make a significant technical contribution to the HDcctv 2.0 physical layer definition. As the surveillance market continues to migrate to HD, we anticipate widespread adoption of our QCO30T/R5-XR chips, and we are committed to enabling interoperability of all our customers’ HDcctv products.”

“Eyenix is proud to support the HDcctv Alliance. Standards compliance means an out-of-the-box plug-and-play customer experience, which, in turn, drives sales,” said Dr. Jon Hwang, CEO of Eyenix. “In addition to providing for camera compliance certification in our EN777 chip, Eyenix is excited to offer a multi-channel receiver ASIC chip for HDcctv-compliant DVRs. Our investors see enormous potential for HDcctv semiconductor sales.”

“An equipment executive’s first reflex is to differentiate his products from those of the other manufacturers,” commented Todd Rockoff, executive director of the HDcctv Alliance. “The Alliance’s mission is to encourage competitors to overcome that reflex and cooperate when it comes to device interface technology. We’re working to help makers’ executives appreciate that everyone – customers, installers, and competing manufacturers alike – benefits from the interoperability that HDcctv compliance certification ensures.”

About the HDcctv Alliance
The HDcctv Alliance is the manufacturers association that manages the HDcctv video interface standard.

Only certified HDcctv-compliant products bear the distinctive HDcctv compliance mark, which guarantees electrical transmission characteristics, interoperability with other manufacturers’ HDcctv-compliant products, and compatibility with future-generation compliant products.
Useful links:

Schedule a meeting with a Member or executive director Todd Rockoff at rockoff(at)highdefcctv(dot)org

HDcctv Alliance Media Contact:
Leslie-Ann Campbell
+1-408-680-6023
campbell(at)laclairecommunications(dot)com

About EqcoLogic
EqcoLogic is a Belgian company, founded in 2005. The company is commercializing innovative equalizer and transceiver technology in numerous markets including machine vision, medical, security and automotive. EqcoLogic is a fabless semiconductor manufacturer, and the company also licenses its core technologies and product designs in certain markets.
For more information, please visit http://www.eqcologic.com

EqcoLogic Media Contacts:
Americas time zones:
Zeph Freeman
+1 (972) 607-4113    
zfreeman(at)eqcologic(dot)com

Europe time zones:
Peter Helfet
+32 2 629 1301
phelfet(at)eqcologic(dot)com

About Eyenix
Founded in 2002, Eyenix provides systems-on-chips that differentiate cameras for several industries including security, camcorder and mobile imaging. Eyenix develops unique intellectual property through diverse customer needs analysis, drawing on both theoretical mathematics and practical advanced engineering methods to deliver finely crafted solutions.
One of the world’s leading ASIC image signal processor (ISP) chip vendors, Eyenix has shipped more than 10 million ISP chips to security camera manufacturers.

Eyenix Media Contact:
Monica B. Yang
+82-3-1204-7333 (ext. 110)
buyang(at)eyenix(dot)com

About Nextchip
A fabless semiconductor company founded in 1997, Nextchip specializes in the design of multimedia chips. Nextchip stands among the few leading chip makers in the video surveillance industry and produces image processing chips used in CCTV cameras, DVRs, IP cameras, and other related products. With the goal of becoming the world's number one company specializing in video processing, Nextchip has developed unique core technologies for video processing over more than 15 years of R&D investment. This intellectual property has positioned Nextchip as the only semiconductor company that possesses all the core technologies for video surveillance systems, including ISP, Decoder, Vertical Driver, CCD, AFE, SoC, Software platform, etc.

Nextchip offers a broad array of semiconductors ranging from highest performance to most economical and can quickly tailor solutions in collaboration with its customers.

Nextchip Media Contact:
Young-Jun Yoo 유영준
+82-2-3460-4700
gisado76(at)nextchip(dot)com

About Semtech
Semtech Corporation is a leading supplier of analog and mixed-signal semiconductors for high-end consumer, computing, communications and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC. For more information, visit http://www.semtech.com/.

Semtech, the Semtech logo, and Gennum are registered marks of Semtech Corporation.

Semtech Media Contact:
Pauline Cadena
+1 (805) 389-2755
pcadena(at)semtech(dot)com

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