STMicro & Quantenna Team Up - Analyst Blog

STMicroelectronics ( STM ) and Quantenna Communications, Inc. have come together to reveal a reference design for Wi-Fi set-top boxes (STBs) to enhance multi-room Digital Video Recorder (DVR) services.

A multi-room DVR solution allows a subscriber to watch, record and delete their DVR programs from any room within the home.

As per the agreement, STMicroelectronics' STiH207 system on chip (SoC) will be combined with Quantenna`s QHS710 4x4 MIMO (multiple-input and multiple-output) chipset to produce cost-efficient and improved video quality reference design for Wi-Fi set-top boxes. This new Wi-Fi set-top box would allow for greater flexibility, video quality and also save money.

A Wi-Fi network is immensely important today because it enables wireless exchange of data with other electronic devices. The new reference design will improve customer experience by offering them the flexibility to set up or move TVs anywhere inside their homes without rewiring connections.

According to the Multimedia Research Group, the Wi-Fi chipset market will continue to expand steadily as new connection paradigms, downward pressure on chipset prices and steady growth in Wi-Fi networks support the market. Also, Infonetics Research expects the global STB market to grow to $16.6 billion in 2016. STMicro is therefore likely to be one of the beneficiaries of this growth.

With the ever-growing demand for Wi-Fi connectivity, there is increasing reliance on wireless networks. The new Wi-Fi set-top box will enable users to stream digital content fasterand simultaneously connect more TVs without any hassles.

STMicroelectronics is well positioned in the fast-growing wired and wireless communications markets and is one of the pioneers in the field of semiconductor solutions for digital set top boxes. The company provides cutting-edge solutions and complete chipset systems for advanced digital set-top boxes and digital TVs. In the third quarter of fiscal 2012, the company's total revenue of $2.16 billion was up sequentially, with the Wireless segment making good progress.

STMicroelectronics carries a Zacks Rank #4 (Sell), as does its peer Infineon Technologies AG ( IFNNY ). However, you may want to take a look at NXP Semiconductors NV ( NXPI ), which carries a Zacks Rank #1 (Strong Buy).

INFINEON TECH (IFNNY): Free Stock Analysis Report

NXP SEMICONDUCT (NXPI): Free Stock Analysis Report

STMICROELECTRON (STM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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