The Pacific Growth investment house estimates that Zoran Corporation (Nasdaq:ZRAN) has begun to sell its Vaddis V chip to Sony, for use in DVD players.

It's like a holy grail, Pacific multimedia technologies analyst Brian M. Alger gushes over Zoran's design win with Sony. The handshake will certainly deepen the United States-Israeli company's penetration of the Japanese market, where it already sells to Toshiba, Sharp, and Pioneer.

Although the design win is a good thing for the Israeli solutions-on-a-chipmaker, Alger does not see the Sony connection translating into serious figures this year, only next.

Analysts have been expecting a deal with Sony for months. Sony makes its own chips for DVDs, but has been looking for an external supplier.

"The Vaddis V DVD decoder is a DVD Multimedia Processor combining advanced DVD playback capability with Web Browsing and flexible video mixing capabilities", Zoran describes its solution.

In March Zoran, which is based in Silicon Valley, announced a design win from South Korea's Samsung. At the time, asked about a possible contract with Sony, Zoran CEO Levy Gerzberg said, No comment". He added that Samsung is more significant than Sony for Zoran, because Sony sells to the high end of the market, while Samsung sells to the low-end and therefore has a higher volume of sales.