Joint Venture to Focus on Smart Energy and Transition to Digital TV in Vietnam
Sigma Designs (NASDAQ: SIGM), the leader in connected media platforms, and Vietnam Multimedia Corporation (VTC), one of Vietnam's largest multimedia corporations, today announced that they have reached an agreement to establish a joint venture to develop and market high-performance set-top boxes for digital television, smart energy products and home connectivity solutions.
The joint venture, VietSilicon Technology Joint Stock Company (VSilicon, JSC), will enable the two companies to accelerate their growth in the Vietnamese market by combining proven IPTV semiconductor technology with VTCs unparalleled local content and network in Vietnam.
"Sigma Designs has the technology we need to modernize the market in Vietnam," stated Mr. Nguyen Hoang Phong, president at VTC Digicom. "By working closely with Sigma, we will accelerate Vietnam's transition to the digital era."
"VTC is Vietnam's leading innovator in digital television," said Thinh Tran, CEO of Sigma Designs. "The combination of our experience in the media processor and connected home and VTC's experience in digital television will help us meet Vietnam's increasing demand for high-definition set-top boxes and smart energy solutions."
Under the terms of the agreement, the joint venture will combine an experienced team, technology development, products, sales and marketing. With the combined talent, capabilities and capital sharing, the joint venture will also provide the focus required to speed innovation and delivery of products to market in Vietnam. Sigma Designs expects the joint venture to introduce two new products in 2011.
"We are trying to modernize the Vietnamese high technology sector," said Dr. Chu Ngoc Anh, Vietnam's Deputy Minister, Ministry of Science and Technology. "The cooperation between VTC and Sigma Designs is proof that the Vietnamese high technology industry is growing and with Sigma contributing its technical expertise, I strongly believe Vietnamese companies will produce many high technology products locally at reasonable prices."
Dr. Le Doan Hop, Minister, Vietnam's Information and Communications Department, said, "The cooperation between VTC and Sigma Designs is important in helping digitize television in Vietnam and create a strong Vietnamese hardware industry."
The joint venture will have its headquarters in Vietnam.
About VTC
VTC is the largest multimedia corporation in Vietnam. The state-owned organization provides media access and content solutions including television (content production and broadcasting), telecommunication (access and networks) and other value-added services. With more than 4 million subscribers, VTC has the largest Pay TV subscriber base in Vietnam and the largest digital TV broadcasting network. The company provides access via satellite, terrestrial, cable, IPTV and mobile TV solutions. It is also a top 5 mobile carrier with its own backbone 3G and 4G services launching soon. The organization is the leader in Value-Added Services for Vietnam including gaming, e-banking and e-payments. For more information, visit www.vtc.com.vn/.
About Sigma Designs, Inc.
Sigma Designs is a leading fabless semiconductor provider of highly integrated system-on-chip (SoC) solutions that are used to deliver entertainment and control throughout the home. SoC solutions include media processing, wired and wireless networking, video image processing and home control along with system software to form the critical components of consumer electronic products that include internet protocol TV (IPTV) set-top boxes and gateways, Blu-ray players and media communication devices. Headquartered in Milpitas, California, Sigma Designs has offices in the United States, Canada, Europe, Hong Kong, Israel, Japan, Singapore and Taiwan and sales representatives in Brazil, China, India, Korea and Russia. For more information, please visit Sigma Designs' web site at http://www.sigmadesigns.com.
Sigma Designs, Secure Media Processor, and the Sigma Designs logo are either registered trademarks or trademarks of Sigma Designs, Inc. and its subsidiaries in the United States and other countries. All other trademarks mentioned herein are believed to be trademarks of their respective owners.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including statements about the Sigma's future product development, the introduction of two new products by the joint venture in fiscal year 2012, anticipated benefits of the joint venture between VTC and Sigma Designs, the potential impact that the joint venture between VTC and Sigma Designs may have on each company, including but not limited to statements about accelerated growth in the Vietnam market, Vietnam's increasing demand for set-top boxes and smart energy solutions and the development and growth of the Vietnamese high technology market. Actual results may vary materially due to a number of factors including, but not limited to: general economic conditions, including continuance of the current economic conditions specific to the semiconductor industry, the rate of growth of the IPTV, connected home technologies, connected media player and prosumer and industrial audio/video markets in general and in Vietnam specifically, the ramp in demand in Vietnam for set-top box and smart energy solutions, Sigma's ability to deploy and achieve market acceptance for Sigma products in these markets, the ability of Sigma's SoCs to compete with other technologies or products in Vietnam as well as other risks that are detailed from time to time in Sigma's SEC reports, including its annual report on Form 10-K as filed on March 28, 2011. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Sigma undertakes no obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contacts:
Derek Perez
Sigma Designs
Public Relations
+1 (408) 240-7632
Derek_perez@sdesigns.com
Edward McGregor
Investor Relations
Sigma Designs
+1 (646) 259-2999
edward_mcgregor@sdesigns.com