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1998-11-10 , ESC-9876
Technology News From Philips Semiconductors

Philips Semiconductors to cut the cost of Digital Television sets by 50 percent


Philips Semiconductors, the largest European semiconductor manufacturer, today announced a unique Digital Television (DTV) concept which will reduce the cost of integrated DTV sets by 50 percent. The new concept virtually eliminates the duplication between ICs and system software in (Internet access required) Set Top Boxes (STBs) and TVs to create the world's first truly integrated DTV sets.

New sets designed using the new DTV concept and conforming to the European DVB (Digital Video Broadcast) standard should be available in the shops by the year 2000.

Until now, receiving DTV signals required either a separate TV and STB or the inclusion of an STB within a TV. As a leader in the creation and development of TV and STB ICs and application software, Philips Semiconductors has used its systems knowledge and competency in these two areas to remove the existing overlap between these two products.

Günther Dengel, Managing Director of Consumer Systems at Philips Semiconductors explains: "Currently the only way to create an European DTV is to put an existing STB inside a TV. This is really a first generation approach to integration and the end product is actually more expensive than having a separate TV and STB because the subsidy given by broadcasters for the sale of STBs does not usually apply. These 'integrated' DTV sets cost around 150% more than an average, middle-range TV.

"Using the Philips Semiconductors' DTV concept, second generation DTV sets will be so much more highly integrated that they will cost about 20% more than today's average TV - in other words about 50% of the price of a first generation DTV set."

Philips Semiconductors is also set to dominate the American ATSC digital television market with its TriMedia™ processor solution, which is being designed in by six of the top manufacturers of DTV receivers. A single programmable TriMedia processor will support all 18 ATSC video formats (ranging from standard to wide screen high definition), an internet browser and reverse communications modem. In addition, the TriMedia processor can process and display new information services based on the datacasting capability of the ATSC standard.

The European DTV standard, DVB (Digital Video Broadcast), has only one display format so it is easier to create DTV and STB solutions. Philips Semiconductors has the complete set of ICs and software required to create an STB and has recently integrated its five-chip solution to just two chips - called the STB5660 - with the intention of combining these into one chip by 1999. Each integration stage brings down the overall system cost, enabling people to enjoy the benefits of the digital television revolution without having to pay a high price for the equipment. For additional functionality such as interaction or web browsing, a TriMedia processor can be easily incorporated to provide a powerful, interactive, digital television.

"We are already producing ICs and software for all the elements in a TV and an STB that are required to create a DTV," said Theo Akkermans, General Manager Business Line Video at Philips Semiconductors. "By using our analog and digital skills along with our extensive systems knowledge, we are now in the process of integrating these systems together to create cost effective solutions for DTV. No other semiconductor company can offer this for both the American and European standards.

"We can even provide all the ancillary functionality such as smartcard interface ICs, (Internet access required) IEEE 1394 interface ICs, amplifier ICs, multi-channel audio ICs, standby power reduction with our GreenChip™ and multi-standard compatibility. Our philosophy is to provide our partners with a complete package of hardware, software and support, which we call the Philips' DTV Concept and forms part of our Silicon Systems Platforms approach of re-using modular hardware and software to facilitate the creation of complete systems on silicon. This is a long term commitment by us to enable them to bring successive generations of products to market both quickly and cost effectively."

Philips Semiconductors is one of the largest producers of TV chips with its single chip TV IC being used in over half the TVs made in the world today. The company's STB ICs have been sold into well over a million STBs.

Philips Semiconductors, a division of Royal Philips Electronics, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world and the third largest supplier of discretes in the world. Philips Semiconductors' innovations in digital audio, video, and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets. Sales offices are located in all major markets around the world and are supported by systems labs.

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