In this paper, quantization and inverse quantizatio unit, a sa component of MPEG-2 moving picture compression system, ar edesigned. In the processing of quantization, this design adopted newly designed arithmetic units in which quantization matrices and scale code was expressed with SD(signed-digit) code. In the arithmetic unit of inverse quantization, quantization scale code, which has 5-bits length, is splited into two pieces; 2-bits for control code, 3-bits for quantization data, and the method to devise quantization step size is proposed. The design was coded with VHDL and synthesis results in that it consumed about 6,110 gates, and operating speed is 52MHz.