Vimicro International Corporation (Vimicro), founded in Beijing, China in 1999, is a worldwide leading fabless semiconductor company that designs, develops and markets proprietary embedded multimedia signal processing chips and solutions that enable multimedia applications for mobile phones over 2.5G/3G networks and PCs over broadband Internet. Because of the downturn in the semiconductor industry in 2007 and the global financial crisis in 2008, VIMC's revenue fell from $126.6 million in 2006 to $86.5 million in 2008. Although VIMC expects the worst to be over, according to analyst firm Gartner, demand for semiconducter goods will not reach 2007 levels until after 2014.
VIMC is a multimedia semiconductor and solution provider with three primary business segments. In 2008 the company had revenues of $86.5 million, a fall of 6.7% from 2007 and a net loss of $13.6 million, an 80% greater loss than in 2007. On continued weakness in demand for high-end technology goods, in Q1 2009, yoy revenue fell $2.1 million, to $22.2 million, and net income fell $9.7 million, to a net loss of $8.3 million.