Highly integrated MPEG-4@SP video compression engine, VideoCore, is proposed for mobile application. The primary components of video compression require the high memory bandwidth since they access the external memory frequently. They include motion estimation, motion compensation, quantization, discrete cosine transform, variable length coding, and so on. The motion estimation processor adopted in VideoCore utilizes the small-size local memories such that the video compression system accesses external memory as less frequently as possible. The entire video compression system is divided into two distinct sub-systems: the integer-unit motion estimation part and the others, and both operate concurrently in a pipelined architecture. Thus the VideoCore enables the real-time high-quality video compression with a relatively low operation frequency.