EXHIBIT 99.1

                   TRIDENT MICROSYSTEMS INCREASES GUIDANCE FOR
        SECOND QUARTER OF FISCAL YEAR 2004 AND ANNOUNCES CONFERENCE CALL

SUNNYVALE, Calif., January 5, 2004: Trident Microsystems, Inc. (Nasdaq: TRID
- -News) today provided an update regarding its second quarter of fiscal year 2004
ended December 31, 2003. Trident expects that both revenues and profits will be
higher than the Company's earlier guidance due to growth in all market segments.

"We expect that second quarter revenues, primarily contributed by TTI, an 83%
owned subsidiary of Trident Microsystems, Inc., will be between $16.0 and $16.5
million compared to the Company's previous guidance of 25-35% TTI revenue
growth over the $9.2 million reported in the September quarter. Net income per
share for the Company is expected to be between $0.05 and $0.07 after taking
into account minority ownership of TTI and based on the diluted shares after a
three-for-two stock split on December 12, 2003," said Frank Lin, Trident's
President and CEO.

"Second quarter revenues for TTI will be between $15.5 and $16.0 million. This
represents an increase of 69% ~ 74% over the prior quarter," said JH Chang,
President of TTI. "During the second quarter, LCDTV and PDP revenues more than
doubled, exceeding our projections, and the progressive CRT TV business in China
is also experiencing demand stronger than our original expectation. Other than
the strong projected growth of China's progressive CRT TV market, part of the
reason for stronger demand in China is that TV manufacturers have pulled in some
of their orders from January to December to meet the demand created by an
earlier Chinese New Year which is January 22 in 2004 versus early February as in
typical years. Overall, we are pleased with our leading DPTV product position
and the strong design-win momentum of the new DPTV-SVP product for both the
LCDTV and CRT TV marketplaces with Trident's industry leading DCRe video
technology. At the up-coming Consumer Electronics Show (CES), we will be
showcasing our new HiDTV product line for the emerging HDTV market. We believe
this will be the industry's first SOC chip to fully integrate HDTV audio/video
digital decoding, analog video processing, and TV requirements all into a single
chip. It is a significant demonstration of Trident's technology breadth and
product readiness ahead of the other competitors."

The Company anticipates lower revenues in the March quarter due to seasonality
in China, and expects the seasonal effect to be greater than last year due to
pull-ins into the December quarter by China TV manufacturers to meet demand for
an earlier Chinese New Year. The Company will report its second quarter fiscal
year 2004 results and guidance for the March quarter on Thursday, January 22,
2004 after the close of market.

The Company also announced that it will hold a conference call to discuss these
preliminary earnings estimates, which will occur on Monday, January 5, 2004 at
7:00 a.m. Pacific Time (10:00 a.m. Eastern Time). Shareholders may participate
in the call by calling 800-901-5231 (U.S.), or 617-786-2961 (International)
passcode 64719737. A replay of the conference call will be available from 12:00
p.m. January 5, 2004 until 11:59 p.m. January 12, 2004, and can be accessed by
calling 888-286-8010 (U.S.), or 617-801-6888 (International) using passcode
29022000.

Forward-Looking Information

This press release contains forward-looking statements, including statements
which use the words "expect," "hope," "anticipate," "believe," "potential" and
similar words, including our statements regarding new products, revenue
expectations and our expectations regarding design-wins. The forward-looking
statements above are subject to certain risks, and actual results could vary
materially depending on a number of factors. These risks include, in particular,
that the Company has not finished its review of quarterly financial results and
such review could result in adjustments to preliminary estimates. Other factors
which could affect results include changes in trends in the DPTV industries,
changes in targeted consumer electronics markets such as Digital Television,
whether the Company is able to achieve timely product introductions, the failure
to obtain design wins among major OEMs for the Company products, and competitive
pressures, including pricing and competitors' new product introductions.
Additional factors that may affect the Company's business are described in
detail in the Company's filings with the Securities and Exchange Commission.

ABOUT TRIDENT MICROSYSTEMS, INC.
Trident Microsystems, Inc., with headquarters in Sunnyvale, California, designs,
develops and markets digital media for the masses in the form of integrated
circuits (ICs) for CRT TV, LCD TV, PDP TV, HDTV, and digital set-top box.
Trident's products are sold to a network of OEMs, original design manufacturers
and system integrators worldwide. For further information about Trident and its
products, please consult the company's web site: http://www.tridentmicro.com.

Trident is a registered trademark of Trident Microsystems, Inc. All other
company and product names are trademarks and/or registered trademarks of their
respective owners. Features, pricing, availability and specifications are
subject to change without notice.

FOR PRESS RELEASES:
Trident Microsystems, Inc.
Investor Relations
Tel:  (408) 991-8090
Email:  Investor@tridentmicro.com
Web site: http://www.tridentmicro.com