SRS Labs, Skyworth to unveil research centre
SRS Labs and Skyworth Group will announce today the establishment of a joint development centre in Shenzhen to research audio technologies for use in high-definition televisions.
The centre will employ 10 engineers initially, and deepens a five-year relationship between the United States and mainland companies.
Nasdaq-listed SRS Labs supplies audio technology such as semiconductors that allow televisions to produce a 'surround sound' effect with just two speakers.
This is the first time SRS Labs has teamed up with a consumer electronics manufacturer to develop a product.
Chairman and chief executive Thomas Yuen said a research partnership with Skyworth was necessary because China might choose to develop its own technology standard for high-definition television.
Mainland manufacturers were also looking to offer a richer audio experience to differentiate their televisions in the market.
'[HDTV] also means high-definition audio. People will be looking for cinema-like audio in their homes,' Mr Yuen said, adding that the joint research effort could be extended to other product areas, such as car audio systems.
SRS Labs has 68 employees in Hong Kong, including workers at its fabless chip design unit ValenceTech.
In addition to Skyworth, its mainland customer list includes Hisense, TCL, Haier and Changhong. Outside China, SRS Labs counts Sony and Samsung among its clients.
Of the company's US$9 million in licensing revenues last year, 20-25 per cent was attributable to China. It had about US$11 million in sales through ValenceTech, mostly to mainland television manufacturers.
Televisions comprise the bulk of the company's business, but SRS hopes to grow revenue from other segments such as MP3 players, mobile phones and audio systems for personal computers.
