<PAGE>

                                                                 Exhibit 10.23

<TABLE>
<CAPTION>
                                    SUBLEASE
     <S>               <C>
     RECITALS
     --------
     Section 1.        Sublease
     Section 2.        Representations and Warranties by Sublandlord
     Section 3.        Condition of the Subleased Premises/Early Access
     Section 4.        Parking/Cafeteria
     Section 5.        Furniture, Partitions, Office Equipment, etc.
     Section 6.        Utilities, Janitorial Services, etc.
     Section 7.        Term
     Section 8.        Rent
     Section 9.        Security Deposit
     Section 10.       Use of Subleased Premises
     Section 11.       Assignment and Subletting
     Section 12.       Sublandlord Improvements
     Section 13.       Subtenant Improvements
     Section 14.       Tenants Obligations Regarding Subleased Premises
     Section 15.       Insurance and Indemnity
     Section 16.       Environmental Obligations
     Section 17.       Eminent Domain
     Section 18.       Other Provisions of Sublease
     Section 19.       Default
     Section 20.       Waiver
     Section 21.       Quiet Enjoyment
     Section 22.       Brokers
     Section 23.       Notices
     Section 24.       Successors and Assigns
     Section 25.       Attornment
     Section 26.       Entry
     Section 27.       Miscellaneous
     Section 28.       Consent by Master Landlord

     EXHIBITS
     --------
     Exhibit A         Master Lease
     Exhibit B         Description of Subleased Premises

     Exhibit C         Cafeteria Rules
     Exhibit D         Time Deposit Assignment
</TABLE>

         THIS SUBLEASE ("SUBLEASE") dated as of October 15, 1999, is made by
and between MITSUBISHI ELECTRONICS AMERICA, INC., a Delaware Corporation
("SUBLANDLORD"), and SILICON IMAGE, INC., a Delaware Corporation
("SUBTENANT").

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<PAGE>

                                    RECITALS

    A.   O'DONNELL, BRIGHAM & PARTNERS/NORTHERN DEVELOPMENTS, a general
partnership ("O'DONNELL ET AL."), as landlord, and Sublandlord, as tenant,
entered into a lease, dated July 15, 1984 for reference purposes only
("ORIGINAL LEASE"), as amended by the following amendments: Amendment No. 1
of Industrial Lease, dated as of March 9, 1988 ("FIRST AMENDMENT"); Second
Amendment to Industrial Lease, made the 31st day of January 1991 ("SECOND
AMENDMENT"); Third Amendment to Industrial Lease, made the 27th day of June
1995 ("THIRD AMENDMENT") and Fourth Amendment to Industrial Lease, dated June
4, 1999 for reference purposes only ("FOURTH AMENDMENT"). The Original Lease
together with the First, Second, Third and Fourth Amendments are hereinafter
collectively referred to as the "MASTER LEASE." A copy of the Master Lease is
attached hereto as EXHIBIT A and is incorporated herein by this reference.

    B.   Pursuant to Section 4.1 of the Second Amendment, O'DONNELL ET AL.
granted to Sublandlord an option to expand the Subleased Premises under the
Original Lease to include "Building No. 2 of the Project ("1060 E. ARQUES
SPACE") (which 1060 E. Arques Space consists of 50,819 square feet and is
more particularly shown on EXHIBIT "B" attached hereto)." Such expansion
space is hereinafter called the "1060 E. ARQUES SPACE."

    C.   By means of the Third Amendment, the 1060 E. Arques Space became a
part of the Subleased Premises under the Original Lease.

    D.   Pursuant to the terms of sale documentation, dated June 27, 1996,
("ASSIGNMENT") O'DONNELL ET AL. assigned all its right, title and interest in
and under the Master Lease to TriNet Sunnyvale Partners, L.P., a California
limited partnership ("MASTER LESSOR") which is the successor-in-interest to
O'DONNELL ET AL.

    E.   Sublandlord desires to sublease to Subtenant, and Subtenant desires
to sublease from Sublandlord, the entire 1060 E. Arques Space, including
rights to use common areas, which 1060 E. Arques Space is more particularly
shown on EXHIBIT B which is attached hereto and made a part hereof by this
reference ("SUBLEASED PREMISES").

    NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto agree as follows:

         SECTION 1.   SUBLEASE.

         Sublandlord subleases to Subtenant the Subleased Premises on the
terms and conditions contained in this Sublease.

         SECTION 2.   REPRESENTATIONS AND WARRANTIES BY SUBLANDLORD.

         (a)    MASTER LEASE/ASSIGNMENT/OTHER AGREEMENTS. Sublandlord
represents and warrants to Subtenant that to the best of its knowledge: (i)
the Master Lease has not been amended or modified except as expressly set
forth in this Sublease; (ii) Master Lessor is the landlord under the Master
Lease as successor-in-interest to O'DONNELL ET AL. pursuant to the

                                       2

<PAGE>

Assignment and the Assignment has not been amended or modified; and (iii)
that Sublandlord is not now, nor will be as of the commencement of the "Term"
(defined below), in default or breach of any provision of the Master Lease.
To Sublandlord's knowledge, there is no other agreement that would affect
Subtenant's use of the Subleased Premises.

         (b)    MECHANICAL SYSTEMS; CODES; LAWS. Sublandlord represents and
warrants that as of the "Commencement Date" (defined below) and to the best
of its knowledge (i) the roof and building systems (for example, HVAC,
mechanical, electrical, plumbing, water and gas) are in good working order
and repair; (ii) Sublandlord will leave all telecommunications and computer
network cabling in the Subleased Premises with pre-existing "drops"
throughout the Subleased Premises for Subtenant's use (but Subtenant is
responsible for all interconnection work); and (iii) to the best of
Sublandlord's knowledge, the Subleased Premises are not in violation of any
ordinance, rule, code or regulation of any governmental agency including,
without limitation, the Americans with Disabilities Act, and Sublandlord has
not received any notice of a possible violation. Subtenant acknowledges that
Sublandlord has not made any representations, other than those specified in
this Section, regarding the condition of the Subleased Premises (including,
but not limited to, the zoning thereof, the appurtenances thereto or the
furniture, fixtures and equipment therein) and that Sublandlord expressly
disclaims all warranties, including but not limited to Year 2000 compliance,
habitability, merchantability and fitness for particular purpose.

         SECTION 3.   CONDITION OF THE SUBLEASED PREMISES/EARLY ACCESS.

         Except for the matters covered by Section 2(b), Subtenant hereby
accepts the Subleased Premises in their "as is" condition as of the date
Sublandlord makes the Subleased Premises available to Subtenant to commence
Subtenant's improvements and waives any and all claims against Sublandlord
for latent and patent defects in the Subleased Premises or any part thereof.
Subtenant shall not make any alteration, addition or improvement, including
(i) signage at the entrance to the Subleased Premises; and (ii) building
eyebrow signage, to the Subleased Premises without Sublandlord's prior
written consent in each instance as to each specific improvement, and, when
and as required under the Master Lease, the Master Lessor's consent in each
instance and as to each specific improvement. Sublandlord shall use
commercially reasonable efforts and cooperate with Subtenant to acquire such
rights from Master Lessor including, without limitation, the right to allow
Subtenant to install signage at the entrance to the Subleased Premises as
well as building eyebrow signage and name placement on the monument which
faces E. Arques Avenue. Sublandlord shall provide Subtenant with early access
to the Subleased Premises two (2) weeks prior to the projected Commencement
Date ("EARLY ACCESS PERIOD") to allow Subtenant to install Subtenant's
improvements including cabling. Access, including the scope of Subtenant's
activity, during the Early Access Period shall be coordinated with
Sublandlord so as not to interfere with Sublandlord's business or moving
efforts. Further, any such access shall be subject to all of the provisions
of this Sublease, except that Subtenant shall not be required to pay Rent
during the Early Access Period.

         SECTION 4.   PARKING/CAFETERIA.

         Sublandlord and Subtenant shall have joint access to certain common
areas on the Subleased Premises including, but not limited to, parking
facilities with a parking ratio of 4

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parking spaces per 1000 rented square feet available to Subtenant as stated
under the Master Lease, and the cafeteria at 1080 East Arques Avenue,
provided, however, that access and use of the cafeteria shall be subject to
the terms of this Sublease and the additional terms described on EXHIBIT C
hereto.

         SECTION 5.   FURNITURE, PARTITIONS, OFFICE EQUIPMENT, ETC.

         Prior to the Commencement Date, Sublandlord and Subtenant shall
agree upon which, if any, furniture, partitions, office equipment, etc.
Subtenant shall purchase from Sublandlord. Sublandlord agrees to sell the
agreed upon items at net book value, and Subtenant agrees to buy the
identified items at this price. To the extent, if any, the book value of the
identified items exceeds fair market value, as determined by a mutually
agreeable third party, Sublandlord will reduce Subtenant's Rent by amortizing
the difference between book value and fair market price over the term of the
Sublease. However, in no event shall Rent be less than $2.30 PSF. All items
shall be sold "as is" unless otherwise expressly stated in writing by
Sublandlord. On or before the Commencement Date, Sublandlord shall deliver to
Subtenant a bill of sale (in form reasonably acceptable to Subtenant)
covering the items purchased by Subtenant and Subtenant shall simultaneously
deliver to Sublandlord a bank check (or other form of payment acceptable to
Sublandlord) in the full amount of the aggregate price for the purchased
items, or other acceptable payment terms.

         SECTION 6.   UTILITIES, JANITORIAL SERVICES, ETC.

         Subtenant shall be solely responsible for any and all costs, fees,
charges, and assessments associated with the provision of any security,
janitorial, maintenance, and utility services to the Subleased Premises,
including but not limited to alarm systems, security, janitors, maintenance
and facilities personnel, electricity, telephone, gas, cable television,
water, refuse disposal, sewerage, telecommunications services, and the like
of any type or description whatsoever. Subtenant shall be responsible for
arranging and contracting for any of the foregoing and for paying all amounts
incurred with respect to the foregoing, and shall maintain all billing solely
in Subtenant's name. In the event that Sublandlord incurs any expense related
to the foregoing, Subtenant shall promptly reimburse Sublandlord for such
expense.

         SECTION 7.   TERM.

         Assuming that the Master Lessor's written consent to this Sublease
has been obtained as required by the Master Lease, the term of this Sublease
("TERM") will commence on the "COMMENCEMENT DATE" which means (i) the date
Subtenant takes actual possession of the Subleased Premises if prior to the
"Scheduled Commencement Date," (ii) November 12, 1999 ("SCHEDULED
COMMENCEMENT DATE") if on such date the term has not already begun and
Sublandlord tenders possession of the Subleased Premises to Subtenant with
all tenant improvements, if any, to be constructed by Sublandlord
substantially completed or (iii) such date subsequent to the Scheduled
Commencement Date on which Sublandlord tenders possession of the Subleased
Premises to Subtenant with the tenant improvements, if any, substantially
completed if on such date the Term has not already begun and if on such date
Sublandlord may tender possession to Subtenant in accordance with the
provisions of this Sublease. The Term

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<PAGE>

shall end on July 31, 2003 unless terminated earlier in accordance with the
provisions of this Sublease ("TERMINATION DATE"). If for any reason
Sublandlord does not tender possession to Subtenant on the Scheduled
Commencement Date as provided above, Sublandlord will not be subject to any
liability for such failure, the Termination Date will not be extended by the
delay, and the validity of this Sublease will not be impaired. Rent will be
abated until tender of possession. However, if Sublandlord has not tendered
possession to Subtenant within sixty (60) days after the Scheduled
Commencement Date, at any time after that date and before tender of
possession, Subtenant may give written notice to Sublandlord of Subtenant's
intention to cancel this Sublease. The notice will set forth an effective
date for the cancellation, which will be at least ten (10) days after
delivery of written notice to Sublandlord. If Sublandlord tenders possession
to Subtenant on or before this effective date, this Sublease will remain in
full force. If Sublandlord fails to tender possession to Subtenant on or
before such effective date, this Sublease will be canceled. Upon
cancellation, all consideration previously paid by Subtenant to Sublandlord
on account of this Sublease will be returned to Subtenant, this Sublease will
be of no further force and effect, and Sublandlord will have no further
liability to Subtenant because of such delay or cancellation. If Sublandlord
permits Subtenant to take possession prior to the Scheduled Commencement
Date, the early possession will not advance the Termination Date and will be
subject to the provisions of this Sublease, including, without limitation,
the payment of rent, provided, however, that rent shall not be due with
respect to the Early Access Period described in Section 3.

         SECTION 8.   RENT.

         (a)    BASE RENT. Subtenant will pay to Sublandlord as monthly base
rent ("BASE RENT"), without deduction, setoff, notice, or demand, (i)
$2.40/rentable square foot ("RSF") for each of the first twelve (12) months
of the Term, (ii) $2.47/RSF for each of months thirteen (13) through
twenty-four (24), (iii) $2.54/RSF for each of months twenty-five (25) through
thirty-six (36), and (iv) $2.61/RSF for each of months thirty-seven (37)
until the end of the Term. Base Rent shall be paid in advance of the first
day of each month of the Term. Subtenant will pay to Sublandlord on execution
of this Sublease an amount equal to the number of RSF multiplied by $2.40 as
Base Rent for the first month. If the Term begins or ends on a day other than
the first or last day of a month, the Base Rent for the partial months will
be prorated on a per diem basis. For all purposes of this Lease, the
Subleased Premises is conclusively deemed to encompass and consist of 50,819
RSF.

         (b)    ADDITIONAL RENT. Subtenant shall pay to Sublandlord as
additional rent the same amount per RSF of the Subleased Premises that
Sublandlord is required to pay to Master Lessor in accordance with Articles
8, 10 and 11 of the Master Lease excluding, however, late charges, interest,
penalties and the like that Sublandlord is required to pay to Master Lessor
as the result of Sublandlord's failure to make timely payments or failure to
otherwise perform under the Master Lease. Subtenant shall pay each such
amount on or before the later to occur of (i) the date five (5) business days
after delivery to Subtenant of Sublandlord's written notice describing the
amount to be paid in reasonable detail and setting forth the last date on
which Sublandlord's payment thereof to Master Lessor can be made on a timely
basis, or (ii) the date five (5) business days before the last date on which
Sublandlord's payment thereof to Master Lessor would be timely. After
delivery to Sublandlord of at least thirty (30) days prior written notice,
Subtenant

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<PAGE>

shall have the right to examine and/or audit the books and records evidencing
such costs and expenses paid to Sublandlord as additional rent during the 365
day period immediately preceding delivery of such written notice. Such right
may only be exercised once in any given 365 day period. If the aggregate
amount so paid exceeds by more than ten percent (10%) the amount that should
have been paid, then (i) Sublandlord shall promptly pay to Subtenant the cost
of such examination or audit, and (ii) Sublandlord shall promptly pay to
Subtenant the amount of such overpayment together with interest at the lower
of ten percent (10%) per annum or the highest legally permissible rate.

         SECTION 9.   SECURITY DEPOSIT.

         Upon execution of this Sublease as and for security for the full and
faithful performance of all the Subtenant's obligations under this Sublease,
Subtenant shall pay to Sublandlord, the first month's Base Rent and shall
deliver or cause to be delivered to Sublandlord an Assignment of Time Deposit
Agreement in the form attached hereto as EXHIBIT D having a "Present Balance"
of $732,862.40 ($245,000 + [4 x 2.40][50,8193]) ("TIME DEPOSIT ASSIGNMENT")
which is incorporated herein by this reference. The Time Deposit Assignment
shall assign to Sublandlord Time Deposit No. 850750000070384 of Subtenant
held by Comerica Bank-California ("TIME DEPOSIT"). The Time Deposit shall (a)
name Sublandlord as beneficiary, (b) be in the amount stated immediately
above, and (c) remain in effect throughout the term of the Sublease and (d)
not be modified, amended, or altered in any manner, except as provided
herein. In the event that Subtenant fails to pay any rent when due or
otherwise defaults with respect to any other of its obligations under this
Sublease, Sublandlord may draw down on the Time Deposit funds sufficient to
remedy such default including any losses, costs, damages and expenses,
including without limitation attorneys' fees and costs, sustained by reason
of Subtenant's default. Funds shall be paid against the Time Deposit to
Sublandlord solely upon presentation by Sublandlord to Comerica
Bank-California at an office of Comerica Bank-California located in Santa
Clara County of (i) Sublandlord's draft of the Time Deposit and (ii) a
written instrument executed by Sublandlord stating that Subtenant has
breached the Sublease. Subtenant shall, within ten (10) days after written
notice from Sublandlord of the amount so drawn down, restore so much of the
Time Deposit as has been drawn down by Sublandlord so as to bring such Time
Deposit up to the original amount. The amount of the Time Deposit shall
reduce in accordance with the following schedule: One year from the
Commencement Date, the parties agree the Time Deposit shall be reduced by
$150,000, all other terms remaining the same, if Sublandlord has not
previously exercised its right to draw down on the Time Deposit. The Time
Deposit shall be reduced by the same amount on the second and third
anniversaries of the Commencement Date if Sublandlord has not previously
exercised its right to draw down as of such dates. On the first business day
business day following the reduction dates set forth in the immediately
preceding sentence, Sublandlord shall take the necessary action to achieve
the specified reduction. Promptly upon termination of the Sublease and
inspection of the Subleased Premises, Sublandlord shall pay, or cause to be
paid, or relinquish or transfer to Subtenant the amount represented by the
Time Deposit, (including accrued interest), less any amounts required to
remedy Subtenant's defaults under this Sublease, or, alternatively, if no
amounts are required to remedy any Tenant defaults upon termination of the
Lease, Landlord shall transfer the Time Deposit to Subtenant by properly
executing and dating the "Release By Assignee" provision in

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the Time Deposit Assignment and delivering the original copy thereof, so
executed and dated, to Subtenant.

         SECTION 10.  USE OF SUBLEASED PREMISES.

         The Subleased Premises will be used and occupied only for the uses
permitted by the Master Lease.

         SECTION 11.  ASSIGNMENT AND SUBLETTING.

         Subtenant will not assign this Sublease or further sublet, transfer
or allow any third party to use or occupy all or any part of the Subleased
Premises without the prior written consent of Sublandlord and Master Landlord
which consent shall not be unreasonably withheld or delayed. Upon receipt of
request from Subtenant to assign, sublease or otherwise divest itself of any
or all of its interest in and to this Sublease or any portion of the
Subleased Premises, Sublandlord shall have the option to exclude from the
Subleased Premises ("recapture"), the space proposed to be sublet or subject
to the assignment, effective as of the proposed commencement date of such
sublease or assignment. Upon receipt of notice from Sublandlord that it
intends to recapture, Subtenant shall have five (5) days to withdraw its
notice, thereby retaining possession of such space for its own use and
enjoyment. If Sublandlord elects to recapture and Subtenant does not withdraw
its notice of proposed assignment, sublease, etc., Subtenant shall surrender
possession of the space proposed to be subleased or subject to the assignment
to the Sublandlord on the effective date of recapture of such space, such
date being the anticipated commencement date of the sublease or assignment
for such space. Effective as of the date of recapture of any portion of the
Subleased Premises pursuant to this section, the Rent and all other
assessments based upon Subtenant's occupancy of the Subleased Premises shall
be adjusted accordingly. Sublandlord shall not have the right to recapture
within six (6) months of the Commencement Date. Further, Sublandlord shall
have no right of recapture as to proposed assigns, subleases, etc. to any
affiliate (as defined by the California Corporations Code) of Subtenant.

In the event Sublandlord opts not to recapture and Subtenant secures all
necessary consent to sublease, assign or any otherwise divest or share any
portion of the Subleased Premises, Subtenant shall pay Sublandlord on the first
day of each month during the term of the sublease or assignment, fifty percent
(50%) of the amount by which the sum of all rent and or other consideration
(direct or indirect) due from the subtenant or assignee, and attributable to the
sublease or assignment, for such month exceeds: (i) that portion of the Rent,
Additional Rent and other costs and charges associated with the Sublease for
said month which is allocable to the space sublet or assigned.

         SECTION 12.  SUBLANDLORD IMPROVEMENTS.

         Prior to the Commencement Date, Sublandlord, at Sublandlord's
sole cost and expense, shall improve the Subleased Premises as follows:

         A. Touch up paint on interior walls, if necessary.


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<PAGE>

         B. Steam clean carpets.

         C. Professionally clean Subleased Premises.

         SECTION 13.  SUBTENANT IMPROVEMENTS.

         Any improvements to the Subleased Premises shall be subject to
Sublandlord's and, when and as required by the Master Lease, Master Lessor's
prior review and approval. All costs associated with Subtenant's improvements
shall be borne by Subtenant. Subtenant shall be responsible to Sublandlord and
Master Lessor for any damage and/or loss to or within the Building, including
the Subleased Premises, and for any personal injury, death or other property
damage resulting from or incurred in connection with Subtenant's improvements
and shall indemnify, defend and hold harmless Sublandlord and Master Lessor from
and against all losses, costs, damages and expenses incurred. Upon expiration or
termination of this Sublease, Subtenant's improvements which were intended to
become permanent shall remain installed at the Subleased Premises and shall
become the property of Sublandlord or Master Lessor, as applicable. Subtenant
may remove its other improvements; provided that it restores the Subleased
Premises to their prior condition upon such removal. Subtenant may not be
required to remove any improvements upon the expiration or termination of this
Sublease.

         SECTION 14.  TENANTS OBLIGATIONS REGARDING SUBLEASED PREMISES.

         (a)    CODES, ORDINANCES, ETC. Subtenant shall not commence
operation of its business on the Subleased Premises unless and until
Subtenant has complied with all applicable building codes, health and safety
codes, regulations and ordinances applicable to Subtenant's use and occupancy
of the Subleased Premises or Subtenant's business. Subtenant shall not use or
suffer or permit any person to use the Subleased Premises or any part thereof
in violation of any law or regulation of any governmental authority having
jurisdiction over the Subleased Premises, and Subtenant shall at all times
occupy and use the Subleased Premises solely for their intended purposes.
Subtenant shall indemnify, defend and hold harmless Sublandlord, Master
Lessor, their corporate affiliates and their officers, directors,
shareholders, agents, representatives, contractors and employees from and
against the consequences of any violation of such laws, regulations, codes,
ordinances or of any provision of this section.

         (b)    CONDITION/USE OF SUBLEASED PREMISES. Subtenant shall keep and
maintain the Subleased Premises in a clean and sanitary condition and in such
condition as may be required by any insurance underwriters or carriers
maintaining coverage on the Subleased Premises. Subtenant shall not use or
permit the Subleased Premises to be used in any manner which would impair the
structural integrity, safety or strength of any buildings or improvements on
the Subleased Premises. Subtenant shall not conduct or operate its business
in any manner whatsoever which would violate any such conditions nor conduct
or operate its business so as to constitute a waste on the Subleased Premises
or a nuisance to or interference with the Subleased Premises.

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<PAGE>

         (c)    HAZARDOUS ACTIVITIES. Subtenant shall not do or permit to be
done any hazardous activities and shall comply with all rules, orders,
regulations and requirements of industrial risk insurers or any other
organization performing a similar function. Subtenant shall in no event store
or use explosives, toxic waste or radioactive materials at the Subleased
Premises. Subtenant, shall not dispose of any solvents by pouring them on the
ground or dispose of solvents (treated or untreated) or other hazardous
materials in violation of the rules or regulations promulgated by any
governmental agency or utility having jurisdiction over the sewer system
servicing the Subleased Premises.

         (d)    TAXES ON SUBTENANT'S PERSONAL PROPERTY. Subtenant shall pay,
at least ten (10) days before delinquency, all taxes, assessments, license
fees and other charges that are levied or assessed against Subtenant's
personal property installed or located in or on the Subleased Premises and
that become due during the term of this Sublease. On demand by Sublandlord,
Subtenant shall furnish Sublandlord with satisfactory evidence of these
payments.

         (e)    LIENS. Subtenant shall keep the Subleased Premises free
from any liens arising out of the work performed, materials furnished or
obligations incurred by or for the benefit of Subtenant, including but not
limited to its improvements on the Subleased Premises. Notwithstanding the
foregoing, should any such lien arise, Subtenant shall file, within ten (10)
days, an appropriate bond to remove such lien or post other security acceptable
to Sublandlord.

         SECTION 15.  INSURANCE AND INDEMNITY.

         (a)   At it sole cost and expense, Subtenant shall at all times
that this Sublease is in effect carry and maintain the following insurance, with
a financially sound and reputable insurance carrier(s) acceptable to
Sublandlord, and to Master Lessor if required under the Master Lease, in the
amounts specified and in the form hereinafter provided for:

               (i) Comprehensive general liability insurance insuring
     Sublandlord and Subtenant, and Master Lessor as required under the Master
     Lease, with respect to occurrences arising on or about the Subleased
     Premises, and covering personal injury, death and property damage with a
     single combined limit of not less than five million dollars ($5,000,000),
     against any and all liability of Subtenant and its authorized
     representatives with respect to the Subleased Premises or arising out of
     the maintenance, use or occupancy thereof, by Subtenant or any of its
     employees, agents, guests or invitees or the performance or non-performance
     by Subtenant of the terms and conditions of this Sublease;

                (ii) All risk insurance, and sprinkler leakage on the
     Subleased Premises and improvements in, on or about the Subleased Premises
     to the extent of at least 100% of their full replacement value. In addition
     Subtenant shall maintain (i) Boiler and Machinery insurance to the extent
     of at least 100% of the full replacement value, and (ii) rent loss
     insurance in favor of Master Lessor and Sublandlord insuring them against
     any loss of rental from damage or destruction of the Subleased Premises
     for a period of at least six months from the date of such damage or
     destruction; and

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<PAGE>

                (iii) Sublandlord, and Master Lessor as required under the
     Master Lease, shall be named as an additional insureds in all such
     insurance policies and coverages.

         (b)    Subtenant shall cause its insurers to waive all rights of
recovery by way of subrogation against Sublandlord and Master Lessor in
connection with any damages covered by any such insurance policies and coverages
as set forth in this section. On or before the Sublease Commencement Date,
Subtenant shall furnish to Sublandlord and Master Lessor and maintain
continuously throughout the term of this Sublease certificates of insurance as
evidence of Subtenant's compliance with its insurance obligations contained in
this section.

         (c)    Each policy of insurance required to be provided by
Subtenant under this section and each certificate therefor shall (i) provide for
at least thirty (30) days' written notice to Sublandlord and Master Lessor prior
to cancellation, expiration, reduction of coverage or other modification; and
(ii) provide that no act or omission of Subtenant shall result in forfeiture or
limit or otherwise affect the obligation of the insurance company to pay to or
on behalf of Sublandlord the amount of any loss sustained. Subtenant shall not
do or permit to be done anything which shall invalidate any of the insurance
policies referred to in this Sublease. If Subtenant shall fail to procure and
maintain any insurance required to be maintained by it by virtue of any
provision of this section, Sublandlord may, but shall not be required to,
procure and maintain such insurance at the expense of Subtenant, and the cost
thereof shall constitute additional rent. All insurance carried by Subtenant
shall be primary to and not contributory with any similar insurance carried by
Sublandlord, whose insurance shall be considered excess insurance only.

         (d)    Neither Sublandlord, any of its corporate affiliates,
Master Lessor nor any of their respective officers, directors, shareholders,
agents, representatives, contractors and employees shall be liable for any
damage or liability of any kind or for any injury to or death of any persons or
damage to any property of Subtenant or any other person during the term of this
Sublease from any cause whatsoever by reason of the acts and/or omissions of
Subtenant, its employees, agents, representatives, contractors, guests or
invitees. Subtenant shall indemnify, defend and hold harmless Sublandlord, its
corporate affiliates, Master Lessor and their respective officers, directors,
shareholders, agents, representatives, contractors and employees from and
against all liability whatsoever on account of any asserted damage or injury and
from all liens, claims and demands arising out of any such use of the Subleased
Premises, any improvements, repairs or alterations which Subtenant may make or
cause to be made upon the Subleased Premises or the performance or
non-performance by Subtenant of any of the terms and conditions of this
Sublease.

         (e)    Subtenant acknowledges that its business on the Subleased
Premises will be conducted for Subtenant's sole economic benefit. All risks of
Subtenant's operation at the Subleased Premises shall be borne exclusively by
the Subtenant. Subtenant hereby assumes and shall be liable for, and shall
indemnify, defend and hold harmless Sublandlord, Sublandlord's corporate
affiliates, Master Lessor and their respective officers, directors,
shareholders, agents, representatives, contractors and employees (the
"Indemnitees") in connection with any and all


                                       10

<PAGE>

losses, costs, damages, expenses and liabilities, including attorneys' fees
and costs, liens, fines and penalties of any kind or nature, civil or
criminal, and special, indirect and consequential damages (collectively,
"Losses"), associated with Subtenant's business operation at the Subleased
Premises and any permits and licenses which may be required therefor.
Subtenant hereby releases the Indemnitees from any and all Losses arising out
of or associated with Subtenant's use of the Subleased Premises and any
permits and licenses which may be required therefor.

         (f)    Notwithstanding anything to the contrary contained in this
Section 15 or anywhere else in this Sublease, Sublandlord and Subtenant each
hereby releases the other and its respective directors, officers, partners,
agents, shareholders, and employees from any and all claims or demands for
damages, loss, expense or injury to the Subleased Premises, and to the
furnishings, fixtures, equipment, inventory or other property of either
Sublandlord or Subtenant in, about or upon the Subleased Premises caused by
or resulting from perils, events or happenings which are the subject of, but
solely to the extent coverage is actually and concurrently provided, as
obligations arise, by insurance carried by the respective parties.

         SECTION 16.  ENVIRONMENTAL OBLIGATIONS.

         (a)    SUBTENANT'S INDEMNITY. Subtenant shall indemnify, defend and
hold harmless Sublandlord, Sublandlord's corporate affiliates, Master Lessor
and their respective officers, directors, shareholders, agents,
representatives, contractors and employees from and against any and all
losses, costs, damages and expenses, including attorneys' fees and costs,
arising from or in connection with or in any manner related to hazardous
materials (i) brought onto the Subleased Premises by Subtenant its employees,
agents, representatives, contractors, guests or invitees, or (ii) negligently
handled by Subtenant or any of its employees, agents, representatives,
contractors, guests or invitees.

         (b)    SUBLANDLORD'S INDEMNITY. Sublandlord shall indemnify, defend
and hold harmless Subtenant, Subtenant's corporate affiliates, and its
respective officers, directors, shareholders, agents, representatives,
contractors and employees from and against any and all losses, costs, damages
and expenses, including attorneys' fees and costs, arising from or in
connection with or in any manner related to hazardous materials (i) brought
onto the Subleased Premises by Sublandlord its employees, agents,
representatives, contractors, guests or invitees, or (ii) negligently handled
by Sublandlord or any of its employees, agents, representatives, contractors,
guests or invitees.

         SECTION 17.  EMINENT DOMAIN.

         (a)    In the event that all or substantially all of the Subleased
Premises are taken or made inaccessible under the power of eminent domain,
this Sublease shall terminate as of the date possession is so taken. If this
Sublease is terminated, all rents shall be paid up to the date of possession
of the Subleased Premises by public authority, and Sublandlord shall make an
equitable refund of any rent paid by Subtenant in advance and not yet earned.

         (b)    In the event that any taking under the power of eminent
domain does not result in the termination of this Sublease as set forth
above, this Sublease shall remain in full

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<PAGE>

force and effect, except that the rent shall be reduced in the same
proportion as the square footage of the Subleased Premises taken bears to the
square footage of the Subleased Premises immediately prior to such taking.

         (c)    All consideration or damages awarded for any taking under the
power of eminent domain and all consideration received by Sublandlord
pursuant to a voluntary sale by Sublandlord to any public or quasi-public
body, agency or person, corporate or otherwise, having the power of eminent
domain, either under threat or condemnation or while condemnation proceedings
are pending, whether for the whole or a part of the Subleased Premises, shall
belong to and be the property of Sublandlord (or Master Lessor as determined
under the Master Lease) regardless of how denominated. However, Subtenant
shall be entitled to retain any compensation for loss or damage to
Subtenant's trade fixtures and removable property.

         SECTION 18.  OTHER PROVISIONS OF SUBLEASE.

         MASTER LEASE PROVISIONS. This Sublease is subject and
subordinate to all of the terms and conditions of the Master Lease. Except as
provided to the contrary herein, Subtenant shall perform the obligations of
Sublandlord as tenant under the Master Lease which accrue on or after the
commencement of the Term to the extent such obligations are applicable to the
Subleased Premises. Subtenant shall not commit or permit to be committed on the
Subleased Premises any act or omission which would violate any of the terms or
conditions of the Master Lease.

         Except as is contrary to the express terms of this Sublease,
all the terms and conditions contained in the Master Lease are hereby
incorporated as terms and conditions of this Sublease (with each reference in
the Master Lease to "Landlord" and "Tenant" to be deemed to refer to Sublandlord
and Subtenant, respectively, hereunder, all references to the term "Lease" to be
deemed to refer to this Sublease and all references to "Premises" to be deemed
to refer to "Subleased Premises"), and along with all of the provisions set
forth herein, shall be the complete terms and conditions of this Sublease.

         Notwithstanding the foregoing, Sublandlord shall not be
responsible for the performance or the furnishing of any repair, replacement or
other obligations or services regarding the Subleased Premises which are
required to be performed or provided by Master Lessor under the Master Lease and
Subtenant agrees to look solely to Master Lessor for the performance of such
obligations. Sublandlord shall have no liability to Subtenant for any failure by
Master Lessor to perform its obligations under the Master Lease, nor shall such
failure by Master Lessor excuse performance by Subtenant of its obligations
under this Sublease; provided, however, Sublandlord shall use commercially
reasonable efforts to cause Master Lessor under the Master Lease to perform all
of the obligations of Master Lessor thereunder to the extent said obligations
apply to the Subleased Premises.

         Sublandlord shall not voluntarily terminate or amend the
Master Lease to Subtenant's detriment without Subtenant's prior written consent
which shall not be unreasonably withheld. If the Master Lease terminates as a
result of a default or breach by Sublandlord or


                                       12

<PAGE>

Subtenant under this Sublease, the defaulting party will be liable to the
nondefaulting party for the damage suffered as a result of the termination.

         In the event of a conflict between any term actually written into
this Sublease and any term hereof resulting from incorporation of Master
Lease terms pursuant to this Section 18., the term actually written into this
Sublease shall take precedence and govern.

         SECTION 19.  DEFAULT.

         (a)    Any of the following events shall Constitute a default of this
         Sublease by Subtenant:

                (i)      Failure of Subtenant to pay any rent or any other
      charge, or any part thereof, required to be paid under this Sublease when
      such failure continues for three (3) days after delivery of written notice
      thereof from Sublandlord to Subtenant;

                (ii)     Failure of Subtenant to observe or perform any
      other provision, covenant, obligation or condition of this Sublease to
      be observed or performed by Subtenant when such failure continues for
      ten (10) days after delivery of written notice thereof from Sublandlord
      to Subtenant or if cure cannot reasonably be accomplished within ten
      (10) business days if Subtenant has not promptly commenced cure after
      delivery of such written notice and prosecuted same to completion;

                (iii)    Abandonment or vacating of the Subleased Premises by
      Subtenant; or

                (iv)     A general assignment by Subtenant for the
      benefit of creditors or the filing by or against Subtenant of any
      proceeding under an insolvency or bankruptcy law, unless, in the case
      of a proceeding filed against Subtenant, such proceeding is dismissed
      within thirty (30) days, the appointment of a trustee or receiver to
      take possession of all or substantially all of the assets of Subtenant,
      unless possession is restored to Subtenant within thirty (30) days, or
      any attachment, execution or other judicially authorized seizure of all
      or substantially all of Subtenant's assets located upon the Subleased
      Premises or of Subtenant's interest in this Sublease, unless such
      seizure is discharged within thirty (30) days.

         (b)    In the event of any such default by Subtenant, in addition to
any other remedies available to Sublandlord at law or in equity, Sublandlord
may treat the occurrence of any one or more of said events as a breach of
this Sublease. In such event, in addition to any or all other rights or
remedies Sublandlord may have under this Sublease and as provided by law,
Sublandlord shall have the right to declare the term of this Sublease ended
and to re-enter the Subleased Premises and take possession thereof and remove
all persons therefrom, and Subtenant shall have no further claim thereon or
thereunder.

         (c)    Should Sublandlord elect to terminate this Sublease under
this section, Sublandlord may recover from Subtenant as damages:

                                       13

<PAGE>

                (i)      The worth at the time of award of any unpaid rent which
     had been earned at the time of such termination; plus

                (ii)     The worth at the time of award of the amount by
     which the unpaid rent which would have been earned after termination until
     the time of award exceeds the amount of such rental loss, if any, that
     Subtenant proves could have been reasonably avoided; plus

                (iii)    The worth at the time of award of the amount by
     which the unpaid rent for the balance of the term after the time of award
     exceeds the amount of such rental loss, if any, that Subtenant proves could
     be reasonably avoided; plus

                (iv)     Any other amount necessary to compensate Sublandlord
     for all the detriment proximately caused by Subtenant's failure to perform
     its obligations under this Sublease or which in the ordinary course of
     events would be likely to result therefrom, including but not limited to
     any attorneys' fees and costs incurred by Sublandlord as a result of or in
     connection with (1) such failure or with the enforcement of any term or
     condition contained in this Sublease, (2) any costs and expenses incurred
     by Sublandlord in maintaining or preserving the Subleased Premises after
     such default or preparing the Subleased Premises for reletting to a new
     tenant and (3) any repairs or alterations to the Subleased Premises for
     such reletting, leasing commissions or any other costs and expenses
     necessary or appropriate to relet the Subleased Premises; plus

                (v)      At Sublandlord's election, such other amounts in
     addition to or in lieu of the foregoing as may be permitted from time to
     time by applicable law.

     As used in clauses (i) and (ii) above, the "worth at the time of award" is
     computed by allowing interest at the maximum rate permissible. As used in
     clause (iii) above, the "worth at the time of award" is computed by
     discounting such amount at the discount rate of the Federal Reserve Bank at
     the time of award plus 1%.

         (d)    Notwithstanding anything to the contrary contained in this
Sublease, in the event of default, Sublandlord may, but shall not be
obligated to, require that all articles of personal property and all business
and trade fixtures, machinery and equipment, furniture and movable partitions
owned by Subtenant or installed by Subtenant on the Subleased Premises remain
on the Subleased Premises, and, in that event and continuing during the
length of such default, Sublandlord shall have the rights, subject to the
rights of prior lienholders, to take possession of and hold such property as
security, to store such property at Subtenant's expense and, upon giving
thirty (30) days' notice to Subtenant, to cause such property to be sold at
private or public sale and apply the net proceeds of sale, after all costs
and expenses of getting the property ready for sale and selling the property,
including attorneys' fees and costs, against Subtenant's obligations to
Sublandlord; provided that Sublandlord may, at its option, require Subtenant
to forthwith remove such property.

                                       14

<PAGE>


         (e)    The remedies given to Sublandlord in this section are
cumulative and shall be in addition and supplemental to all other rights or
remedies which Sublandlord may have under the laws then in force.

         (f)    Subtenant hereby acknowledges that late payment by Subtenant
of any rent or any other charge, or any part thereof, required to be paid
under this Sublease will cause Sublandlord to incur costs not contemplated by
this Sublease, the exact amount of which will be extremely difficult to
determine. Such costs include but are not limited to processing and
accounting charges and late charges which may be imposed upon Sublandlord by
any lender. Accordingly, if any such amount shall not be received by
Sublandlord when due, then, without any requirement for notice to Subtenant,
Subtenant shall pay a late charge equal to six percent (6%) of each such
overdue amount. The parties hereby agree that this charge represents a fair
and reasonable estimate of the costs Sublandlord will incur by reason of such
late payment. Acceptance of such late charge by Sublandlord shall in no event
constitute a waiver of Subtenant's default with respect to such overdue
amount, nor prevent the exercise of any of the other rights and remedies
granted hereunder. In the event that a late charge is payable hereunder as
Base Rent or Additional Rent, whether or not collected, for three (3)
consecutive installments, then notwithstanding any provision of this Sublease
to the contrary, such amounts shall at Sublandlord's option become due and
payable quarterly in advance.

         SECTION 20.  WAIVER

         The waiver by Sublandlord or Subtenant of any breach of any term,
covenant or condition contained in this Sublease shall not be deemed a waiver
of any subsequent breach of the same or any other term, covenant or condition
contained in this Sublease. Sublandlord's consent to or approval of any of
Subtenant's conduct shall not be deemed to relieve Subtenant from obtaining
Sublandlord's waiver, consent or approval of any similar act or subsequent
breach by Subtenant. Sublandlord's acceptance of rent shall not be deemed to
be a waiver of any prior breach by Subtenant of any term, covenant or
condition, except as to payment of the rent so accepted by Sublandlord,
regardless of Sublandlord's knowledge of such preceding breach at the time of
acceptance of such rent.

         SECTION 21.  QUIET ENJOYMENT.

         Subject to Subtenant's compliance with the covenants and agreements,
terms, provisions and conditions of this Sublease, Sublandlord covenants that
Subtenant shall quietly enjoy the Subleased Premises without interference by
Sublandlord or any person claiming by, through or under Sublandlord.

         SECTION 22.  BROKERS.

         Sublandlord and Subtenant each warrants that it has not dealt with
any real estate broker in connection with this transaction other than BT
Commercial Real Estate representing Subtenant and Tory Corporate Real Estate
Advisors, Inc. (dba The Staubach Company) representing Sublandlord.
Sublandlord shall pay a real estate brokerage fee to The Staubach Company
which shall divide such fee with BT Commercial. No other payment shall be

                                       15

<PAGE>

otherwise payable to either Broker by Sublandlord or Subtenant. Sublandlord and
Subtenant, as the case may be, shall indemnify, defend, and hold the other
harmless against any damages incurred as a result of a breach of the warranty
contained in this Section 22. by such breaching party.

         SECTION 23.  NOTICES.

         All notices and demands that may be required or permitted by either
party to the other will be in writing. All notices and demands to the
Sublandlord and to the Subtenant will be effective when actually delivered to
the party to whom notice is to be given. Addresses for delivery of notices to
the parties are as follows:

                      If to Sublandlord:        Mitsubishi Electronics America,
                                                Inc.
                                                1050 East Arques Avenue
                                                Sunnyvale, CA 94086
                                                Attention: Senior Vice
                                                President-Administration

                                                with a copy to: Legal Department

                      If to Subtenant:          Silicon Image, Inc.
                                                1060 East Arques Avenue
                                                Sunnyvale, CA 94086
                                                Attention: Dan Atler/Chief
                                                Financial Officer

         SECTION 24.  SUCCESSORS AND ASSIGNS.

         This Sublease will be binding on and inure to the benefit of the
parties to it, their heirs, executors, administrators, successors in
interest, and assigns.

         SECTION 25.  ATTORNMENT.

         If the Master Lease terminates, Subtenant will, if requested, attorn
to Master Landlord and recognize Master Landlord as Sublandlord under this
Sublease.

         SECTION 26.  ENTRY.

         Sublandlord reserves the right to enter the Subleased Premises on
reasonable notice to Subtenant to inspect the Subleased Premises or the
performance by Subtenant of the terms and conditions of this Sublease and,
during the last three (3) months of the Term, to show the Subleased Premises
to prospective subtenants. In an emergency, no notice will be required for
entry but Sublandlord will make commercially reasonable efforts to enter only
during business hours and if entry, in Sublandlord's reasonable judgment,
should be made during non-business hours, Sublandlord shall notify Subtenant
of such entry promptly after it has been made. Sublandlord's rights of entry
pursuant to this section may be exercised without Sublandlord being deemed
guilty of an eviction of Subtenant and without abatement of rent. Sublandlord
shall not unreasonably interfere with the business of Subtenant when
exercising the right of entry under this Sublease and shall be responsible
only for damage caused by any unreasonable entry or

                                       16

<PAGE>

negligent conduct during the entry. Except as otherwise provided in this
Sublease, Subtenant hereby waives any claim for damages for any injury or
inconvenience to or interference with Subtenant's business, any loss or
occupancy or quiet enjoyment of the Subleased Premises and any other loss
occasioned thereby. Any entry to the Subleased Premises by Sublandlord
pursuant to this section, whether by force or otherwise, shall not under any
circumstances be construed or deemed to be forcible or unlawful entry into or
a detainer of the Subleased Premises or an eviction of Subtenant from the
Subleased Premises or any portion thereof.

         SECTION 27.  MISCELLANEOUS.

         (a)    This Sublease sets forth all the agreements between
Sublandlord and Subtenant concerning the Subleased Premises, and there are no
other agreements either oral or written other than as set forth in this
Sublease.

         (b)    All payment and indemnification obligations of Subtenant and
Sublandlord, shall survive the expiration or termination of this Sublease. If
Subtenant fails to pay Sublandlord, or vice versa, any amount payable under
this Sublease when due, such amount shall bear interest at the rate of one
and one-half percent (1.5%) per month or the highest rate permitted by law,
whichever is less, from its due date until paid. In addition, Subtenant shall
pay Sublandlord, and vice versa, for all costs of collection, including
attorneys' fees and costs.

         (c)    Upon the expiration of earlier termination of this Sublease,
Subtenant shall quit or surrender the Subleased Premises to Sublandlord
"broom-clean" and in good order, condition and repair, except for ordinary
wear and tear and casualty damage not caused by Subtenant, or any of its
employees, invitees, guests, agents or contractors.

         (d)    If Subtenant remains in possession of the Subleased Premises
after the expiration or earlier termination of this Sublease, Subtenant shall
be deemed to be occupying the Subleased Premises as a Subtenant from month to
month at the sufferance of Sublandlord at 150% of the rental rate in effect
at the time of such expiration or termination, subject to all of the terms
and conditions of this Sublease. The foregoing is in addition to and does not
affect Sublandlord's right to entry or any other rights of Sublandlord under
this Sublease.

         (e)    The language in all parts of this Sublease shall in all cases
be construed simply according to its fair meaning and not strictly for or
against either Sublandlord or Subtenant.

         (f)    Captions and headings are for convenience only and shall not
be used in interpreting the terms and provisions of this Sublease.

         (g)    This Sublease cannot be changed orally, but only in a writing
duly executed by the parties.

         (h)    The enforceability, interpretation and all other aspects of
this Sublease shall be governed by and construed according to the laws of the
State of California.

                                       17

<PAGE>

         (i)    Each party represents that it has full power and authority to
enter into and perform this Sublease and that the individual executing this
Sublease on its behalf has been duly authorized and empowered to enter into
this Sublease on its behalf.

         SECTION 28.  CONSENT BY MASTER LANDLORD.

         THIS SUBLEASE WILL HAVE NO EFFECT UNLESS CONSENTED TO BY MASTER
LANDLORD WITHIN 30 DAYS AFTER EXECUTION BY SUBLANDLORD AND SUBTENANT. IN
WITNESS WHEREOF, the parties have executed this Sublease as of the date first
above written.

SUBTENANT:                                SUBLANDLORD:

SILICON IMAGE, INC.,                      MITSUBISHI ELECTRONICS
a Delaware corporation                    AMERICA, INC., a Delaware
                                          corporation



By:  /s/ Dan Atler                        By:   /s/ Richard D. Schulenburg
    ------------------------------             ------------------------------

Name: Dan Atler                           Name: Richard D. Schulenburg
    -------------------------------            ----------------------------

Its:                                      Its: SR VP - Admin. Group
    -------------------------------           ------------------------------


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