Canon Inc claims that it has developed the first chip for digital video cameras that combines recording and playback signal processing circuits into a single large-scale integrated circuit. The new chip paves the way for the development of smaller, higher quality cameras that can be connected to personal computers and other multimedia equipment, Canon said. Canon, Toyko said that the new chip uses original circuit architecture and signal processing core to achieve the functions on a single chip. Other features include a microcomputer interface making possible operation by general purpose computers. Canon intends to use the chip, developed in co-operation with Fujitsu Ltd, in future models of digital camcorders.