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VOIP SEPTEMBER FOCUS ISSUE
Sept. 26, 2005
VoIP Semiconductor Market to Grow to Cellular
Proportions
With market and technical experts alike expecting VoIP phones in
over 50 percent of all homes in North America in the next few years, it is time to prepare for the VoIP market. Adding more
urgency is the expected surge in global demand to make phone calls, both voice and video teleconferencing, over home
Internet connections.
Globally, the VoIP market may far outgrow the cellular phone
market, which today hovers around 700 million shipments annually. Doing a little simple math, it is easy to see
that the VoIP semiconductor could easily reach the $10 billion mark. If one assumes that VoIP chip content in
VoIP phones at $10.00 a phone, the VoIP semiconductor market has the potential to reach $7 billion a year, up from today’s
level of just a few hundred million. But there’s more. Besides VoIP handsets, there is the entire VoIP telecommunications
infrastructure that is being built. That in itself could add several billion dollars to the VoIP voice revolution.
Expanded VoIP Market Research - Special VoIP Report and Expanded Directory Coverage to Be Added
This Week
With that analysis, the Semiconductor Evening News brings to you
its focus series of news. Each issue of the Semiconductor Evening News focuses on recent news about a specific market segment.
Today’s feature is the VoIP market. Covered are recent VoIP product introductions and general VoIP Business and Investment
News.
We are also expanding our VoIP Directory and our VoIP article index
on our VoIP pages. Also this week, look out for our VOIP SEMICONDUCTOR MARKET REPORT. This report covers
the developments in the VoIP over the last year. It includes product announcements, market share analysis and other business
information pertinent to investors in VoIP as well as design engineers, who want to ensure they have the best design options.
Others that will have an interest include purchasing agents looking for best prices, as well as system VoIP companies and
those that sale their products to the system, chip, IP core and VoIP chipware (software) markets.
VoIP Chip Companies Report Flock of New Customers - Broadcom
Wins TCL Account
Broadcom Corporation (NASDAQ:BRCM), a fabless semiconductor company
with nearly $2 billion in annual revenues, in September introduced a new VoIP processor and entered into an agreement with
TCL Communications Equipment (Huizhou) Co., Ltd., to supply single-chip Voiceover Internet Protocol (VoIP) phone and
analog terminal adapter (ATA) chips. The two chips selected by TCL include the BCM1113R and the BCM1112. The two chips
enable the design of low cost IP phones for the consumer and business markets.
TCL Communications, based in China is considered “The King
of Telephones in China.” The company has a manufacturing capacity in the order of 10 million units per year. TCL
Communications also has a VoIP product development agreement with Texas Instruments.
Broadcom has already obtained customers for its recently introduced
VoIP mobile processor, the BCM1161 (see the VoIP product section). Customers for this product that intend to integrate it
into WiFi VoIP converged applications include Alpha Networks, Moimstone and Wistron Neweb.
Also this month, Legerity’s VoIP products were selected by
Amrivox Ltd. for use in its Unified Telephone Adaptors (UTAs). The UTAs are targeted at the consumer market through
the retail channel.
Mindspeed Technologies, Inc. (NASDAQ:MSPD also is supplying Teleca
with its Comcerto processor and software. Teleca has integrated the 100 square centimeter solution into VoIP gateways
for use in PBX systems. Teleca has over 3,000 employees and is based in Sweden.
NETGEAR selected the Atlanta system on a chip solution from Centillium
Communications, Inc. (NASDAQ:CTLM). That chip is used for the design of VoIP media terminal adaptors, VoIP cordless phones,
gateways, and triple-play settop boxes.
Motorola also indicated that it is using Texas Instrument’s
advanced VoIP software and silicon for its VoIP delivery systems. Other VoIP equipment customers of Texas Instruments
include 3Com, Alcatel, Arris, AudioCodes, Cisco Systems, Ericsson, General Bandwidth, LG Electronics, Mitel, Motorola, Netgear,
Nortel Networks, Quintum Technologies, Siemens, Sonus Networks and Vtech. Texas Instruments also reported that it has entered
into an agreement with TCL Communications to integrate TI’s VoIP solution into TCL’s IP phone solutions.
New VoIP Chips Enter Marketplace From Multitude of Vendors
In September, a variety of VoIP chip products were brought on the
market. Leaders such as Broadcom, Legerity and Infineon introduced products along with emerging fabless companies. TigerJet,
Voxelle and SOC Technologies were all in VoIP product news.
TigerJet Low-Cost USB PC VoIP Solution
TigerJet Network, Inc. has developed a new single chip solution
to permit the conversion of standard phones, including cordless phones, to USB based VoIP phones. The chip is called the Tiger560C.
Dr. YW Sing, CEO of TigerJet Network elaborated on the lower bill of materials that the chip enables, "Using the Tiger560C,
an adapter that connects the PC to a regular phone can be built using a simple manufacturing process and with a BOM (bill
of material) of significantly less than $10. Having one phone that can be used to make all types of telephone calls is very
appealing and now that this function can be enabled so economically, we anticipate a rapid rise in the demand for adaptors
that provide this function." The chip is currently be sampled to OEMs.
Broadcom Offers Video over IP Chip Solution
Broadcom introduced a second generation mobile voice processor targeted
for the digital camera and video conferencing markets. The BCM1161 includes a 2 megapixel digital camera,
video record and playback features and supports three way conferencing and speaker phones. The chip integrates an ARM9
microprocessor, an analog voice codec with microphone and speaker interface, and an interface for a 262K LCD display as well
as a USB 2.0 interface.
Infineon Readies Shipments of VoIP SLIC
Chip
New VoIP products that Infineon has recently showcased include its
DuSLIC-SP (Dual-Channel Subscriber Line Interface Controller-Single Package). That chip integrates dual channel telephone
line interface and CODEC for both POTS and VoIP applications such as wired and wireless VoIP routers and gateways, as well
as VoIP enabled DSL and cable modems. The chip is packaged in a 256 square millimeter footprint. Unique to the product is
that it is built in with a 170 volt semiconductor process. This gives the device a higher resistance to line surge as a result
of lightening that often will damage broadband access devices. The DuSLIC-SP is expected to be available in October 2005 in
sample quantities.
Voxelle VoIP Gateway Chipset to Convert Cell Phones to VoIP
Phones
Voxelle, expected to be spun-off soon from Smart Link Ltd.,
started initial chipset shipments of its Tlink chipset, a Personal VoIP gateway solution that it introduced in May.
The company reports that it looks forward to seeing a number of products based on the chipset on retailers shelves for
the holiday season. The company also reported that OEMs have greeted the chipset with enthusiasm. The company indicated
that the chipset converts existing mobile phones and cordless phones to VoIP phones, that can be used anywhere, without
the need for a PC. The TLink chipset solution also includes software and a reference design.
Conexant’s Home and Business VoIP Chip Includes Multitude
of Interfaces
Conexant Systems, Inc. (NASDAQ:CNXT) introduced its VoIP chip-based
phone solution, the CX90600 for home and office desktop phone terminals. The chip integrates an analog codec,
ARM926EJ core, UART, a USB controller, and includes interfaces for I/O, keypads, smart cards, Ethernet, flash drives,
video cameras, WiFi wireless connections. The chip also supports G.711, G.722, G.726 and G.729ab voice coding scheme,
echo cancellation and full-duplex speakerphones. The chip is available now, priced at $15.00 in quantities of 10,000
in a 324 pin flat pack BGA.
AudiCodes Introduces Tulip VoIP
AudioCodes (NASDAQ: AUDC), along with Legerity and Jungo Ltd., a
gateway software company, introduced an analog telephone adapter VoIP chip called the Tulip AC494. The chip comes complete
with integrated software, as well as a hardware reference design targeted at Original Equipment Manufacturers, Original Design
Manufacturers and those that want to add VoIP functionality to and Broadband Access devices such as XDSL, cable, Fiber
to the Home (FTTH) and wireless devices.
AudioCodes has seen sales from both its VoIP chips and systems grow
considerably over the last year.
CHIP PLATFORMS AND REFERENCE DESIGNS
SOC Technology and VOCAL to Ship VoIP Reference Design
SOC Technology GmbH & Co. KG, a provider of single chip solutions
for VoIP, G3/UTMS, GSM, and ISDN applications, has aligned with VOCAL Technologies Ltd. through the development
of a VoIP Speaker Reference Design. The reference design is scheduled for production in the fall of this year.
SOC offers the VI-18xx line of VoIP/MoIP/Video chips.
PMC-Sierra Introduces VoIP / WiFi Broadband Router Platform
for Triple Play
PMC-Sierra, Inc. (Nasdaq:PMCS) introduced a VoIP Wi-Fi Broadband Router platform
as an addition to its line of reference designs for home telephone equipment. The new platform is to assist designers
in the development of triple play wireless home routers. PMC offers the MSP4200 VoIP Wi-Fi Broadband router single chip solution,
which is based on the MIPS processor.
Renasas Receives VoIP Certificate from Nortel
Renasas Technology received a Certificate of Compatibility from
Nortel, for a VoIP reference platform it co-developed with Arcturus Networks Inc.. The certificate was awarded after
the platform passed interoperability testing with Nortel's Multimedia Communication Server. The platform is based on the SuperH
RISC processor chip, is available through Renasas Technology America.
VoIP CORES
Trinity Ports Edge VoIP Software to MIPS Microprocessor
– For Next Wave Video Over IP
MIPS Technologies, Inc. (NASDAQ:MIPS), producer of the MIPS microprocessor
core, as part of its effort to dominate the VoIP intellectual property core market has entered into a development
agreement with Trinity Convergence. Trinity will port its VeriCall Edge VoIP and voice + video over IP (V2IP) embedded software
solution to the MIPS32 24E line of microprocessor IP cores. The 24KE cores include a DSP Application-Specific Extension,
an important block for the implementation of VoIP algorithms. According to Mark Felice, vice president of sales
and marketing at Trinity Convergence, "The MIPS 24KE core helps to satisfy our customers' need for a low-power, single-processor
solution in their voice and video over IP equipment designs. We believe the integration work we are working on will help to
accelerate the deployment of new and compelling consumer VoIP solutions."
VoIP SEMICONDUCTOR MARKET MOVES
Lead VoIP Chip Companies Report Continued Growth –
Infineon Sees 300 Percent Rise
Texas Instruments, Infineon and Legerity all recently reported milestones
in penetrating the VoIP market. Infineon recorded a 300 percent growth rate in its VoIP segment,. Legerity announced it reached
the 14 million port shipment mark and Texas Instruments, considered the VoIP market leader, swept past the 150 million
port shipment mark. Texas Instruments VoIP chip solutions are based on technology from Telogy Software.
Infineon Technologies AG (NYSE:IFX)(GER:IFX), indicated that its
VoIP market growth represented an increase in overall market share. In reporting that it moved from the number 5 position
in the 2004 VoIP chip market from number 10 in 2003, it referenced iSuppli, a market research firm. According to Infineon,
that report says that total revenues from VoIP Customer Premises Equipment products grew at a 70.2 percent rate from
2003 to 2004 to reach $102 million.
Infineon also reported that worldwide the number of residential
VoIP user increased to 5 million in 2004 and is expected to increase to 200 million by 2010. For Infineon’s fiscal
year 2004, which ended in September, the company reported total revenues of Euro 7.19 billion. Infineon has 35,600 employees
worldwide.
Legerity said that it reached the 14 million VoIP line mark
at this Septembers Fall VON show. Applications that it has shipped its chips into include voice enabled cable modems, DSL
modems, broadband gateways and terminal adapters. Legerity reported that the growth from its VE790, VE950 and VoicePort VE880
products has contributed to 65 percent growth for the year to date over 2004 levels.
VoIP Conference Schedule
The leading VoIP conference, Spring VON 2006 Conference &
Expo Exhibitor, a semi-annual conference is scheduled for March 14 to March 16, 2006. The next conference will feature
scores of VoIP companies from across the spectrum of VoIP industries. Already several IC and chipware companies
have signed up to exhibit. These include Freescale Semiconductor Inc., Global IP Sound, Infineon Technologies, Intel, Legerity,
Inc., Mindspeed Technologies.
August 26th, 2005
Akustica, Inc., a company that has popularized the microphone-on-a
chip has aligned with SigmaTel, Inc. (NASDAQ:SGTL), known for its market leadership in the MP3 music machine chip market.
The two have collaborated on a high definition PC based VoIP solution for the voice communications market. That design solution
incorporates Akustica’s CMOS-MEMS silicon microphone and SigmaTel’s audio codec chip, used in the conversion of
voice-to-data and data-to-voice.
The two companies already have come a long way to simplify the design
process for system engineers. As Akustica and SigmaTel have now have in their hands a digital microphone array reference design
for PC notebook implementation. Furthermore, SigmaTel has released new high definition audio codecs that have been specifically
designed to interface directly with Akustica’s microphone on-a-chip.
The market for such a solution is expanding, according to James
Rock, CEO of Akustica, "As seen in Real-Time-Communication programs like MSN Messenger, AOL Instant Messenger, and Skype,
speech enabled applications are clearly gaining momentum and, together with SigmaTel, we will enable consumers to experience
superior voice quality. Consistent with their reputation for innovation and creativity, SigmaTel is the first company to demonstrate
a fully integrated and cost-effective digital microphone array solution for notebook computers."
The new solution is also expected to improve Internet based voice
communications according to Phil Pompa, VP at the Integrated Components Group, SigmaTel, "The relationship with Akustica
reinforces our commitment to innovation and providing customers with advanced technology to overcome the design obstacles
many system developers face. In addition, the simplicity and flexibility of Akustica's CMOS-MEMS technology combined with
SigmaTel's new HD Audio codecs enables next generation platforms to support greatly improved voice communications."
August 22nd, 2005
Marvell Technology Group Ltd. (NASDAQ:MRVL), a fabless semiconductor
company in the disk drive storage technology and consumer markets, reported revenue of $390.5 million for its second quarter
ended July 30, 2005. That number is up 31.4 percent from the company’s same quarter last year, recorded as $297.2 million.
Sequentially, revenue was also up 7 percent from $364.8 million for the company’s last quarter, its first quarter of
its fiscal 2006 year.
The company also reported on its revenue for its latest six month
period, which was $755.2 million compared to $566.7 million for the same period last year.
Dr. Sehat Sutardja, Marvell's CEO at Marvell indicated that
the company was seeing strong growth in the Enterprise and Consumer markets, "Q2 was another very successful quarter for Marvell.Our
consistently strong financial performance is a result of the hard work and dedication of our employees, the strong positioning
of our world class technologies and the support of our customers and partners. We currently enjoy strong growth and momentum
from both the Enterprise and Consumer markets and are focused on the continued solid execution of our business strategies."
With
the announcement the company reported that the current quarter was its 31st quarter of sequential revenue growth. With that
consistent revenue growth, the company also reported its highest level of cash, cash equivalents and short term investments,
$847.1 million.
Among the company’s achievements announced for the quarter
included a new 90 nanometer based Wireless LAN single chip solution, called the 88W8686. That solution, considered one of
the smallest, has a footprint less than 50 square millimeters.
Along with the financial report Marvell also introduced a family
of chips for the VoIP market. These include chips for VoIP gateways and Voice over WLAN (VoWLAN)handsets and low cost enterprise
phones. According to Kishore Manghnani General Manager, Broadband Home Business Unit Communications and Consumer Business
Group at Marvell, "The Marvell mission is to enable innovative products at consumer price points. Not only is this family
of VoWLAN products so highly integrated that it will create a new class of applications for consumer, home use -- it allows
the Company to take advantage of the explosion in broadband voice services that is about to occur."
August 19th, 2005
Mindspeed Technologies Inc. (NASDAQ:MSPD) a challenger in the VoIP semiconductor market, continues to build its VoIP
base with a design win from Huawei Technologies, Co. Ltd. and an alliance with Legerity Inc., a company that also has significant
operations in the VoIP market. Huawei, a network and telecommunications equipment supplier sited Mindspeed’s Comcerto
VoIP processor voice functionality as one of reasons for the choice, "Mindspeed's Comcerto family provides superior VoIP processing
power for our product. Complete hardware and software compatibility across the range of Comcerto processor channel densities
also provides Huawei Technologies with the flexibility and scalability required in designing advanced platforms with enhanced
voice functionality," said Liu Bo, Vice President of Huawei’s hardware product department.
Through Mindspeed’s alignment with Legerity the two companies have made plans to offer a complete VoIP solution,
which is intended to allow equipment companies to expedite the development of complete VoIP processing path and system solutions.
According to Mike Stibila, Vice President of Marketing and Applications at Legerity, "The Mindspeed and Legerity relationship
enables customers to develop VoIP products faster and more cost-effectively. In today's extremely competitive world, development
cost and time are king. Together, we offer the market a very low price point while providing the most advanced features and
diagnostic packages available."
The joint scalable solutions offered are to meet the need for complete VoIP design solutions for network infrastructure
and subscriber side equipment for applications such as copper POTS-to-Ethernet VoIP, voice and data routers, and passive optical
network equipment to name a few.
August 18th, 2005
Texas Instruments Aligns with TCL to Develop IP Phone Solutions
Texas Instruments Incorporated (TI) (NYSE: TXN) has entered into an agreement with TCL Communications Equipment (Huizhou)
Co., Ltd. (TCL) to develop IP phone solutions. As part of the agreement TI will integrate its VoIP and broadband technology,
which includes the TNETV1050/1055 IP Phone Solution, with TCL’s IP phone technology.
According to Dong Yewei, Deputy General Manager of TI China, the agreement is expected to enable higher quality IP phone
products, "As the leading VoIP and broadband technology provider, TI has long been a supplier to the world's leading IP phone
makers. TCL has a comprehensive communication production capacity. We believe our cooperation will enable TCL to provide IP
telephone products with better quality."
August 11th, 2005
Mindspeed Technologies Inc. (NASDAQ:MSPD), a contender for semiconductor market share in the VoIP market, reported another
design win for its VoIP processor, the Concerto VoIP processor. According to Mindspeed, the Concerto has been integrated into
Viking InterWorks’ VRDE1401 family of voice-gateway modules. The VRDE1401 voice-gateway module can provide up to 128
G.711 or 64 G.729ab voice channels. The module also offers support for lower cost applications that require just 8-voice channels.
Among the reasons given for the selection of the Concerto processor were the voice quality and enterprise features of the
chip. According to Donald F. Coffin, marketing manager, DSP Products for Viking InterWorks, "The excellent voice quality of
Mindspeed's Comcerto processor combined with sophisticated enterprise features enables us to provide a complete module solution,"
Steve McClure, executive director of marketing for Mindspeed, also emphasized Concerto’s voice quality "Together,
Viking InterWorks and Mindspeed address the needs of our customers who demand fast time to market without sacrificing end-user
voice quality. Our customers can leverage these modules into custom form factors across multiple densities for both carrier
and enterprise applications maximizing their investment."
Viking InterWorks considers itself one of the largest producers of memory modules in the world. The company also has operations
in communications and DSP modules. It is a division of Sanmina-SCI.
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