SAN JOSE, Calif. Ė Home networking chip designer Entropic Communications has invested $10 million in video specialist Zenverge Inc. Along with the investment, the two companies plan to start jointly selling chips and working on future integrated devices.
The investment was part of a $20.5 million D series round for Zenverge involving a mix of existing and new venture capital firms and the Motorola set-top box business, a major customer. The company has raised $75.5 million to date.
Zenverge has shipped two generations of chips that transcode MPEG video for display on mobile systems. Entropic aims to pair its Multimedia over Coax home networking chips with the Zenverge parts for current designs and collaborate on integrated parts for next-generation consumer systems.
Entropic will continue a partnership with Vixs Systems Inc. which sells video transcoding chips used in a Motorola system that has also designed in Entropic chips. Entropic will more closely tie its silicon to chips from Zenverge which it sees as more extensible, said Vinay Gokhale, senior vice president of marketing for Entropic