Set-Top Boxes – standalone or integrated devices that receive, decode and display digitally transmitted broadcasts - first arrived at the dawn of digital TV broadcasting more than ten years ago. Pioneering the nascent industry, STMicroelectronics then introduced the world’s first set-top-box single-chip solution for the digital TV’s original standard, MPEG-2.

Since then, the ongoing transition from analog to digital broadcasting over terrestrial, satellite, cable, or IP broadband systems has enabled enhanced video and audio experience with High Definition, an increased choice of channels, as well as deployment of new services beyond TV, such as digital video recording, video on demand, Internet access, VoIP (Voice over IP) telephony or home-entertainment networking.

These new services, often supplied as bundled offerings (multi-play), together with government-orchestrated plans around the world to phase-out analog TV transmissions over the next seven years, have stimulated customer demand for set-top boxes and digital TVs. These trends are driving the replacement rate, accelerating the adoption of the latest technologies, such as MPEG-4 AVC and HDTV (High-Definition TV). According to industry research firms, more than 100 million digital set-top boxes were sold worldwide in 2007 with the market growing fast in a number of different directions: from free-to-air terrestrial and satellite broadcasting to satellite, terrestrial and cable subscription services to emerging IP TV.

Since 1995, when ST introduced the world’s first set-top box chips, the Company has firmly established itself at the forefront of the industry, developing innovative multi-standard, multi-market solutions with the latest features and fast time-to-market. The Company is the largest supplier of set-top box chips, with a cumulative total of MPEG-2 and MPEG-4 decoders shipped exceeding 400 million pieces.

ST has built successful partnerships with key equipment manufacturers, serving as a one-stop shop with the ability to supply all components from front-end chips and advanced digital-video decoders to application software and standard products, such as standard discretes for all the world’s set-top box makers. ST’s reference designs and system solutions reduce the overall system cost and time-to-market, address different markets with optimized engineering effort.

From very low-cost products to highly advanced set-top box applications that support terrestrial, satellite, cable, and broadband services - or their combination - ST’s various System-on-Chip platforms set unprecedented standards of performance, integration and functionality. Increasing device complexity and shrinking geometries require ever closer coordination between design and manufacturing. ST is uniquely positioned in this respect as the only supplier of advanced video decoders that has both design and fabrication capabilities in-house.

ST’s single-chip solutions integrate multi-standard decoding circuitry, supporting the latest video-compression technologies - H.264 (MPEG-4), VC-1 and AVS - that use less bandwidth and lower bit rates for producing high-quality video, as well as advanced audio (Dolby®, SRS), most advanced security systems on the market and multi-standard demodulation technologies (DVB-S, DVB-S2, DVB-T, ATSC). ST’s strengths in picture quality and high-definition image formats build on the Company’s long experience and expertise in analog/digital TV and display technologies, and has been reinforced and strengthened with the acquisition of Genesis Microchip in early 2008.

Equipped with world-class connectivity and security features, ST’s set-top box platform now transforms into the hub of home entertainment. An embedded high-speed Ethernet modem can distribute content throughout the home wireless network, while the USB and Serial ATA interfaces enable consumers to connect external devices like hard-disk drives or memory cards to turn their TV into a Digital Video Recorder (DVR).

The new generation of ST’s set-top boxes implements the latest specifications for digital rights management (DRM) and secure connectivity. Windows Media DRM and the Secure Video Processor (SVP) standards allow digital rights to be passed between consumer devices. Integrated High-bandwidth Digital Media Interface (HDMI) and High Definition Copy Protection* (HDCP) facilitate transmissions of encrypted content to digital-capable TV receivers, without compromising user convenience for legitimate copying or time-shifting.

Leveraging its presence in the STB and Digital TV markets, ST now provides a complete reference platform for Blu-Ray DVD players and advanced connected dual-TV and dual-DVR STB applications.

Complementing the comprehensive range of video decoders, ST’s silicon tuners and signal demodulators receive and convert the broadcast signal into the digital transport stream. Both single and dual demodulators are available, simultaneous demodulation of primary and alternate channels in the dual-carrier format, such as for dual-language broadcasts. These multi-standard front-end modules offer optimized indoor and outdoor reception and provide a glueless interface to the ‘back-end’ decoder, meeting all requirements for satellite, cable and terrestrial transmissions. ST also brings to the market single-chip solutions integrating the front- and back-end functionalities to in high-volume applications.

ST’s end-to-end silicon offering couples with its highly portable application programming interface (STAPI) and a broad range of software stacks for fast and cost-effective end-product customization. Moving up the value chain, the Company closely collaborates with middleware vendors, security vendors and broadcast operators worldwide to provide optimized solutions that further reduce the overall system and development costs, as well as time-to-market, for consumer electronics manufacturers and broadcast operators.

Leveraging its broad market-leading portfolio of standard products, ST also supplies set-top box makers with power components, audio and video switches, and discrete standard products. ST’s smartcard ICs combine state-of-the-art security with high-performance cryptography in pay-TV applications and include portable USB tokens that allow consumers to use their digital and biometric signatures wherever they go.

Today’s set-top boxes clearly signal a trend towards integrated user experience beyond broadcasting, combining top-quality multimedia entertainment with advanced communications services, including web access and Internet telephony. “Quad play” boxes are already available in the market, integrating TV, Internet, phone services and video-call facilities.

From the world’s first MPEG decoder in 1995 to its latest ‘ with advanced connectivity and security capabilities, STMicroelectronics continues to lead the success story of the set-top box, delivering an unparalleled combination of Innovation, Integration and Intelligence.

April 2008

*The High-bandwidth Digital Content Protection (HDCP) specification was developed by Intel Corporation