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Silicon Image buys SiBeam to extend HD video reach

Specialist in HDMI adds WirelessHD technology for 60GHz home networks to its portfolio

By CAROLINE GABRIEL

Published: 14 April, 2011

READ MORE: M&A | SiBeam | Silicon Image | Semiconductor | Standards

Silicon Image is to acquire fellow chip designer SiBeam, in a move that brings together two wireless video would-be standards, MHL and WirelessHD.

Silicon Image, whose roots lie in HDMI, is the brains behind the MHL Consortium, founded a year ago to make it easier to get HDMI-style functionality, such as video output to HDTVs, into every phone. MHL uses the mini-USB port rather than a bulky HDMI port, and can make even a basic phone into an integral element of home entertainment systems.

Also focused on delivering HD video wirelessly between different devices in the home is WirelessHD, a 60GHz in-home network based on SiBeam's technology. SiBeam is a founder of the WirelessHD Consortium, but also makes chips that support a rival 60GHz standard, WiGig, which is an extension of Wi-Fi and therefore has broader support in many areas.

Silicon Image will pay $25.5m in cash and stock for the start-up, which was founded in 2004 by a team of engineers from the Berkeley Wireless Research Center. SiBeam was one of the pioneers of implementing ultra-high speed 60GHz chips in CMOS, reducing cost so that they became viable for mass market consumer electronics. It has raised about $114m in several rounds from backers including New Enterprise Associates, US Venture Partners and Foundation Capital.

"The acquisition of SiBeam underscores our stated mission to be the leader in advanced video connectivity solutions and SiBeam's 60GHz wireless technology will enable us to rapidly bring the highest quality of wirelessly transmitted HD video and audio to market," said Silicon Image CEO Camillo Martino in a statement. "Silicon Image has a proven history of establishing successful global connectivity standards, including DVI, HDMI, and most recently MHL and we are looking forward to driving WirelessHD as a global connectivity standard and to delivering standards-plus products supporting both wireless and wired HD connectivity standards."

In February, SiBeam fleshed out technical details of its hybrid chipset, which brings together WirelessHD and WiGig. This was a step towards hedging its bets in the in-home video market, but the firm remained in need of greater scale and backing, hence the logic of this acquisition.

Despite its support for WiGig, SiBeam has argued that WirelessHD is still superior in almost all scenarios because it is more energy efficient. The WiGig Alliance retorts that it will charge no royalties for its specs, unlike WirelessHD or even pure Wi-Fi, and will boast Wi-Fi fallback plus PAL layers supporting HDMI, DisplayPort and other interfaces.

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