From ADI & Intel news today.
Intel, Santa Clara, Calif., doesn't make DSP chips, and the alliance could allow the company to fill an important product gap as it moves beyond microprocessors to making chips for all types of appliances.
Representatives of Analog and Intel wouldn't comment on any details of the alliance.
The chips that the two companies develop will most likely be used in modems, networking devices and other communications devices, say people close to the matter. It couldn't be learned whether Intel plans to market modems, but one area of the market that is growing fast is digital-subscriber line modems, which are used to provide fast Internet access over regular phone lines.
DSP chips take analog signals, such as voice and images, and convert them into digital signals. For instance, a DSP inside a cellular phone converts, encrypts and compresses the human voice into a digital signal before it is sent over the airwaves.
ADI's DSP sales in its current fiscal year, which ends in October, are expected to reach about $400 million, more than a quarter of the company's overall estimated revenue of $1.35 billion, analysts say. Big customers include 3Com Corp., Siemens AG and Philips Electronics NV.
The market for DSP chips is expected to hit $4.5 billion this year, from $3.5 billion last year, according to Semico Research in Scottsdale, Ariz.
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