VideoLogic lands STMicroelectronics deal

VideoLogic has landed big fish STMicroElectronics, through a licensing deal which could translate into big bucks. STMicroelectronics will incorporate VDO'S PowerVR technology into fast, new 2D/3D PC graphics and video accelerators. The VDO deal will also enable the French semiconductor giant to deliver a so-called "leadership 3D roadmap" for digital set-top boxes. STMicroelectronics is -- we are told -- a market leader in the digital consumer IC market. STMicroelectronics will provide a welcome boost to VideoLogic -- a smallish, British company with great technology, but overly dependent on one big customer, NEC. Sega uses NEC-made PowerVR chips in its Dreamcast console. To date, STMicroelectronics has sold five million graphics chips worldwide. So VDO will be quids in if its French customer sells anything like that number using Power VR. ® ®