Analysis: Behind the downfall of Silicon Image's CEO

Bolaji Ojo, Junko Yoshida
EE Times (09/30/2009 4:49 PM EDT)  

MANHASSET, N.Y. — The sudden resignation of Silicon Image CEO Steve Tirado earlier this week may not have surprised those following the company's recent financial results. Still, questions remain about whether Silicon Image's business model, which the company has always insisted is "unique," may have caused Triado's downfall. Over the span of 14 years, Silicon Image may have perfected possibly the most innovative business model for a startup chip vendor. The Sunnyvale, Calif., company is in the business of championing standards (i.e. HDMI); it designs its own chips based on the standards it promotes; it licenses its intellectual property cores; then it offers to OEMs testing and verification services for systems (but not chips) based on the standards it helped create.

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