Motorola (News - Alert) Inc. has acquired the assets related to the digital cable set-top products of Zhejiang Dahua Digital Technology Co., LTD and Hangzhou Image Silicon -- collectively, Dahua Digital.


Dahua Digital is a privately held, developer, manufacturer, and marketer of cable set-tops and related integrated circuits for the emerging Chinese cable business. Dahua Digital's set-top portfolio includes basic set-tops, two-way interactive set-tops and the high-end media-center class of products. In addition, Dahua Digital also has a substantial China cable operator customer base.

Through this latest acquisition, Motorola is expecting to expand its digital set-top box offerings in China and significantly improve Motorola’s time to market in the region.

Company officials stated that Dahua Digital's low-cost chipset solution, designed specifically for the Chinese set top business, will enhance Motorola's product line.

“We are very pleased to announce this transaction with Dahua Digital, which will significantly expand our existing capability in China and position Motorola well to address the tremendous growth opportunities this market presents,” commented Dan Moloney, president of home & networks mobility business at Motorola.

He also said that Dahua Digital’s strong time to market advantage, R&D capabilities and sales reach are a compelling fit with Motorola’s strategy in China.

Simon Leung, president at Motorola Asia Pacific, indicated that Chinese digital cable is rapidly growing, presenting an important opportunity for Motorola to extend its existing business in set-tops.

He also noted that 130 million Chinese households currently subscribe to cable, and as customers make the transition from traditional analog solutions to digital cable, digital cable subscriptions in China are expected to grow from 10 million in 2006 to over 165 million by 2016.

“With this transaction, Motorola will be well-positioned to capitalize on increasing demand for digital cable solutions in China,” he added.

Zhu Jiangming, chairman and general manager at Dahua Digital, expects that by joining forces with Motorola, his company will enjoy technological benefits and have the resources to enhance its distribution capabilities throughout China.

“As part of Motorola, we will be well-positioned to deliver even more compelling digital set-top box solutions and outstanding service to our customers,” he said.

Dahua Digital will be integrated into Motorola’s Home & Networks Mobility business, according to Motorola.

The company intends to maintain Dahua Digital in Hangzhou, which will be an integral component of Motorola’s China digital cable market operations. Both the companies did not disclose the terms of the transaction.

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Anshu Shrivastava is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.

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