SigmaTel
Encyclopedia
SigmaTel is an electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

 company located in Austin, TX, which designs mixed audio signal processors
Audio signal processing
Audio signal processing, sometimes referred to as audio processing, is the intentional alteration of auditory signals, or sound. As audio signals may be electronically represented in either digital or analog format, signal processing may occur in either domain...

, and controller chips
Microcontroller
A microcontroller is a small computer on a single integrated circuit containing a processor core, memory, and programmable input/output peripherals. Program memory in the form of NOR flash or OTP ROM is also often included on chip, as well as a typically small amount of RAM...

 for multifunction peripheral
Peripheral
A peripheral is a device attached to a host computer, but not part of it, and is more or less dependent on the host. It expands the host's capabilities, but does not form part of the core computer architecture....

s. SigmaTel was Austin's largest IPO as of 2003 when it became publicly traded on NASDAQ. It does not provide consumer support for its devices directly; rather, OEM
Original Equipment Manufacturer
An original equipment manufacturer, or OEM, manufactures products or components that are purchased by a company and retailed under that purchasing company's brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, OEM designates a...

s that make use of their products provide support, and are supplied with the necessary information and device driver
Device driver
In computing, a device driver or software driver is a computer program allowing higher-level computer programs to interact with a hardware device....

s.
style="text-align:center; font-size:larger;" | SigmaTel
Type Subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...

Founded 1993
Location USA

History

First-generation iPod shuffle
IPod shuffle
The iPod Shuffle is a digital audio player designed and marketed by Apple Inc. It is the smallest model in Apple's iPod family, and was the first to use flash memory...

 used the SigmaTel STMP35xx and its turnkey product quality Software Development Kit v2.6. Over 150 portable MP3 player models use the STMP35xx highly-integrated low cost audio System On a Chip (SOC) that requires no external RAM, voltage converters, battery chargers, headphone capacitors, Analog to Digital Converters, Digital to Analog Converters, or amplifiers, and over 150 million such portable audio player SOCs were sold from 2002-2006. Audio quality was rated as best in industry. SDK3.1x added Microsoft DRM10 support enabling services interoperability such as Rhapsody, Napster, and Yahoo Music Engine subscription audio services. Over 100 portable audio products are based on that STMP35xx SDK3. A few products using that SigmaTel SOC and software include the Dell Ditty, Creative muvo, Philips, etc.

Its line of audio CoDec chips has been found in Dell laptops, several new Dell desktops
Desktop computer
A desktop computer is a personal computer in a form intended for regular use at a single location, as opposed to a mobile laptop or portable computer. Early desktop computers are designed to lay flat on the desk, while modern towers stand upright...

, the Sony Vaio notebook, and numerous other audio playback devices.
SigmaTel sold its PC audio business in mid-2006 to Integrated Device Technology
Integrated Device Technology
Integrated Device Technology, Inc. is a publicly traded corporation headquartered in San Jose, California, that designs, manufactures, and markets low-power, high-performance mixed-signal semiconductor solutions for the advanced communications, computing, and consumer industries. The company...

, Inc for approximately USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

 $80 million.

At one point, SigmaTel chips were found in over 70% of all MP3 devices sold on the market. However, SigmaTel lost its last iPod socket in 2006 when it was not found in the next generation iPod shuffle. PortalPlayer
PortalPlayer
PortalPlayer, founded in 1999, was a fabless semiconductor company that supplied system-on-a-chip semiconductors, firmware and software for personal media players...

 was their largest competitor, but were bought by Nvidia
NVIDIA
Nvidia is an American global technology company based in Santa Clara, California. Nvidia is best known for its graphics processors . Nvidia and chief rival AMD Graphics Techonologies have dominated the high performance GPU market, pushing other manufacturers to smaller, niche roles...

 (NVDA) after PortalPlayer's chips lost their socket in the iPod
IPod
iPod is a line of portable media players created and marketed by Apple Inc. The product line-up currently consists of the hard drive-based iPod Classic, the touchscreen iPod Touch, the compact iPod Nano, and the ultra-compact iPod Shuffle...

. SigmaTel was voted "Best Place to Work in Austin 2005" by the Austin Chronicle
Austin Chronicle
The Austin Chronicle is an alternative weekly, tabloid-style newspaper published every Thursday in Austin, Texas, United States. The paper is distributed through free news-stands, often at local eateries or coffee houses frequented by its targeted demographic...

.

In July 2005, SigmaTel acquired the rights to different software technologies sold by Digital Networks North America
Digital Networks North America
Digital Networks North America, Inc. is a Delaware, USA Corporation, incorporated in 2003.DNNA's headquarters are in Santa Clara, California.It is a division of D&M Holdings and supports the former Escient, Rio and replayTV brands...

 (a subsidiary of D&M Holdings
D&M Holdings
D&M Holdings is a Japanese corporation that owns several audio and video brands. It was formed in 2002 from the merger of Denon and Marantz. It has acquired several other companies since that time. In 2008 it was acquired by K. K. BCJ-2, a Tokyo corporation owned by investment funds advised...

, and owner of Rio Audio
Rio (digital audio players)
Rio was the brand name of a line of digital audio players, best known for producing the "Diamond Rio" model that was the impetus for a lawsuit in 1998 by the Recording Industry Association of America...

).

SigmaTel provided ready-to-use SOC software to equipment manufacturers to drive its current and next generation portable audio and video player chips. Formats decoded include MP3, WMA, WAV, VORBIS, and on STMP37xx and 36xx SOCs: MPEG4 in AVI, WMV, etc. Audio Recording and Encoding to MP3 & WAV formats are supported from microphone, SigmaTel FM IC (STFM1000) digital audio source, or line-in. Printed Circuit Board (PCB) layouts and reference schematics were provided to OEM and Original Development Manufacturing (ODM) customers.

After having the right to physically destroy Actions Semiconductor products at the U.S. border for IP infringement, SigmaTel settled all patent litigation and entered into Cross-License agreement with the Zhuhai, China based Actions Semiconductor
Actions Semiconductor
Actions Semiconductor Co., Ltd. is a system-on-a-chip company based in Guangdong, China. Actions develops system-on-a-chip designs for digital audio players and photo viewers.S1 MP3 players use chipsets designed by Actions....

 Co. Ltd http://www.actions.com.cn/. Both companies also agreed to not pursue possible third party IP infringements or new legal actions against each other and their respective customers for three years. Consequently, all of Actions' current and future products may now be imported into the U.S. market without restrictions.

The company also won a spot in Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

 televisions. Sales of the company's SGTV5800 TV Audio solution, which can be used in analog, digital and hybrid televisions Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

 have been ramping. SigmaTel introduced the SGTV5900 which is anticipated to supplant the SGTV5800.

In mid 2007 the company introduced. QVGA 320x240 portable video decoding and higher resolutions followed using WMV and MPEG4.

Some SigmaTel microcontrollers, like STDC982G are used in printers manufactured by Samsung and sold under Xerox brand. Kodak All In One printers use a SigmaTel IC.

SigmaTel's equity has traded as low as $100 million below book value. Its peak share price was $45 and its day1 IPO max share price was around $18. After the SGTL IPO in 2003, Austin's other biggest IPO was the later spinoff of Freescale Semiconductor by Motorola Corporation.

On February 4, 2008, Freescale Semiconductor
Freescale Semiconductor
Freescale Semiconductor, Inc. is a producer and designer of embedded hardware, with 17 billion semiconductor chips in use around the world. The company focuses on the automotive, consumer, industrial and networking markets with its product portfolio including microprocessors, microcontrollers,...

announced that it had entered into a definitive agreement to acquire SigmaTel for $110 million.
The agreement closed in the second quarter of 2008 and all SGTL shares were purchased by Freescale for $3 each.

Freescale continued developing and selling the STMP3 portable AV SOC product line which is the ARM9 based STMP37xx & STMP36xx AV SOCs, and the DSP56k based STMP35xx portable AV SOC. Product info was on Freescale's ARM-based controller site. Freescale's i.MX2 ARM9 and i.MX3 ARM11 based multimedia SOCs product line have been integrated with the STMP3xxx product line resulting in a strong portable multimedia product portfolio.

On February 25, 2009, Freescale laid off 70% of the former Sigmatel team as part of a company-wide reduction in force. No new products under the old Sigmatel design teams will be created. A 'skeleton crew' was chosen to stay and support existing OEM customers that are using the existing chips until the chips are 'End Of Lifed'. Freescale integrated analog IP from SigmaTel into its competing product lines and continues to pursue component and Real Time OS device driver based support for OEM's rather than the complete hardware and software turnkey system design approach of the successful startup that became SGTL on NASDAQ.

External links

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