A new low-cost digital television chip from Philips Semiconductors is likely to give cable TV a run for its money--without monthly bills.
Philips on Monday introduced the new chip, dubbed SAA7108A/09A HD-CODEC. The codec acts as a translator, decoding digital TV signals and allowing them to be viewed on a television or computer displays.
The chip is the first to combine the two standards for digital television, known as standard definition and high definition, or SDTV and HDTV.
The chip comes at a time when broadcasters are beginning to transmit standard digital television. Most stations are making the transition now, having been mandated by Congress and the Federal Communications Commission to begin transmissions by May 1.
Throw in a low price, as little as $18 when purchased in mass quantities, and manufacturers could produce low-price digital TV receivers that by the end of the year make digital available to the masses for free, analysts said.
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