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Aug. 24 (The Orange County Register/KRTBN)--Software behemoth Microsoft Corp.
unveiled the design for a silicon chip Thursday that treads on the turf of local
giants Broadcom Corp. and Conexant Systems Inc.
The chip, called Solo2, was designed by the Seattle company's WebTV subsidiary
and allows Internet access and multiple-channel viewing on a TV.
"Solo2 is kind of the next quantum leap not only does it have the Internet
capabilities and interactivity built in, but it brings in digital video and
audio capability," said Tim Bucher, WebTV's vice-president of consumer products.
But the chip also works in devices outside the WebTV box, which brings Microsoft
the world's largest software developer into the highly competitive market for
the chips used in products that access the Internet.
Microsoft has already licensed the design to another chip manufacturer which
Bucher declined to name that will release its own version of the chip this year.
"That's really our goal, is to kick-start these kinds of markets," he added.
Communications chips accounted for $31.5 billion in revenue last year, according
to the Semiconductor Industry Association, a trade group.
The rapid growth in the communications-chip sector has driven Broadcom and
Conexant to multibillion-dollar stock values, and other companies like Intel
Corp. to create their own designs.
Bala Iyer, chief financial officer of Conexant, said Microsoft recognizes that
the Internet is no longer limited to the personal computer, and it's trying to
keep up. "Microsoft has to be looking at platforms outside of the PC to expand
the market for their software," Iyer said. "It's unclear that they're going to
want to be a long-term presence in the hardware business, but they do want to
stimulate growth in hardware outside the PC."
The move is a departure for Microsoft, but it makes sense, said analyst Mike
Paxton with Cahner's In-Stat Group, an industry research firm.
"They've never done anything like this before," he said. "But if it's
successful, there's no reason why they can't sell it to other companies."
By Chris Farnsworth |
