The dynamic expansion of the multimedia market has been accompanied by an increasing demand for video services. The latest trends reveal the need for high-quality reproduction of video on TV- and HDTV-displays as well as on desktop screens. As a consequence, the requirements for video reproduction are growing not only for high-end applications, but also in the consumer market. Nevertheless, current technology is disappointing. Most of the TV-screens and video projectors exhibit annoying interline and screen flicker. Moreover, computer displays suffer from insufficient resolution of the reproduced videos accompanied by motion judder. Some of these problems can be reduced by increasing computation power and bus bandwidth. However, some of them cannot. Problems related to the basic video standards and the incompatibility with multimedia display formats cannot be overcome by operation at higher data rates or the improvement of computation speed. They call only be solved by image format conversion performed by the digital processing of video signals. To accept the challenge, a high-quality image converter of low complexity has been developed at the Heinrich-Hertz-Institute and projected to be integrated as a single chip for application within TV- and HDTV-sets and with graphic accelerators for computer monitors. It will provide the highest possible video quality without loss of resolution and motion judder.