STMicroelectronics Delivers Samples Of Dedicated Processor Chip For All-Digital Car Stereos.

GENEVA, Switzerland--(BUSINESS WIRE)--August 30, 1999--

- Complex Chip With Two Digital Signal Processor (DSP) Cores

And Other Functions Will Replace Traditional Analog

Solutions In Future AM/FM Car Stereos

STMicroelectronics (NYSE:STM) has delivered to customers fully functional samples of a new chip that allows consumer electronics companies to develop car stereos in which all of the key functions are performed digitally, replacing traditional analog solutions.

The new chip, called TDA7500, integrates two Digital Signal Processor (DSP) 'cores', and all of the other functions needed to interface the DSPs to the rest of the stereo, on a single piece of silicon. The Company expects that the product will ship in volume quantities in the fourth quarter of 1999.

According to market analyst Dataquest(a), the world-wide market for semiconductors used in car stereo production in 1999 will be worth approximately $800 million, although ST believes the true figure could be closer to $1 billion. Even though the world-wide car stereo market is experiencing only modest growth, the use of semiconductors in car stereos is growing rapidly. This is because many new functions and capabilities, such as mobile phones and GPS navigation, are being added to car stereos, which will create an even larger market for semiconductors.

Using only digital techniques, the TDA7500 performs all of the basic functions like AM/FM and stereo decoding, volume, tone and balance controls. In addition, it can implement optional features like graphic equalizers and concert hall effects to differentiate high end products and new features like echo cancellation and noise reduction, which are useful in 'convergence' products where a mobile phone is embedded in the stereo.

A programmable digital solution like the TDA7500 has many advantages over the conventional analog car stereo. The most important is that new features can be added simply by changing the software. This makes it easier for manufacturers to differentiate their products and also reduces manufacturing costs as the same hardware platform can be used for a whole range of radios with differing capabilities, reducing engineering cost and giving economy of scale. Another benefit is that performance is constant and uniform regardless of environmental conditions or variations in the characteristics of components.

Reprogrammability gives car stereo makers the possibility of bringing to market significant new product benefits in the time it takes to develop and debug new software modules. For example, a model already in production could be upgraded to include a new 3D sound enhancement technique that did not exist when the platform was designed, or new features like a text-to-speech function for translating coded traffic bulletins could be added. Many of these features are offered in ST's standard DSP software library.

STMicroelectronics (formerly SGS-THOMSON Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Bourse de Paris and on the Milan Stock Exchange. The Company designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. Further information on ST can be found at www.st.com

(a) Automotive Semiconductor Application Markets 1997 - 2002, Dataquest, November 1998