Conexant Supplies Chips for EchoStar Receivers

[Scott Greczkowski]

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Conexant Supplies Chips for EchoStar Receivers
Oct 29, 2003

Conexant Systems [Nasdaq: CNXT], a Newport Beach, Calif.-based semiconductor supplier for digital information and home entertainment networks, has received an order from EchoStar Communications [NasdaqISH] to supply a single-chip set-top box (STB) product for use in EchoStar's new line of STB satellite receivers. Conexant's single-chip CX24154 product integrates an MPEG-2 audio/video decoder, an ARM920 32-bit RISC processor, a two-dimensional graphics accelerator, TV encoder, channel 3/4 radio frequency modulator, video/graphics display compositing controller and a set of peripheral input/output ports for STB front and back panel connectors.

 

[Stargazer]

If this is who is going to supply some of the parts for these single and dual tuner receivers then it appears that they have not even started production of them yet.

 

[video62]

They're probably talking about chips for the 'next generation' of gear... or a revised design (using newer chips) of current boxes.

There is no way the production of almost-ready-to-ship models (811,921,322,311,522, etc.) would be based on a deal that was just now inked.

 

[Stargazer]

Why would they just now be getting a deal with them for more advanced components after rolling out a new product line? Perhaps another type of receiver or just a change in a component provider?

 

[video62]

Why would they just now be getting a deal with them for more advanced components after rolling out a new product line?

Because that's the way product development cycles work. When Whizbang Chips Inc. releases something new, it takes AT LEAST A YEAR (well, maybe 9 months with lots of luck) before a product based on that chip will be available for you to purchase. The newest fandangle chip may permit the vendor to offer the same box they are shipping now at a reduced price (due to reduced component count thanks to the new chip) or a year (or more) from now a totally new box with new features may be available.

Sometimes, things also don't pan out. The development department might spend 3 or 4 months working with Whizbang's WB67890 chip only to find out it won't quite work unless Whizbang makes a WB67890B version of the chip. Once Whizbang does that, then the clock starts all over again.

 

[Smith P.]

At least known the Connexant chip will be in DP111.