In the 90's and early 2000's SigmaTel produced audio
codecs which went into the majority of PC
sound cards.
Creative's
Sound Blaster used mainly SigmaTel and ADI codecs. This expanded to on-board audio for computer motherboards and
MP3 players. In 2004, SigmaTel SoCs were found in over 70% of all
flash memory-based
MP3 devices sold in the global market. However, SigmaTel lost its last iPod socket in 2006 when it was not found in the next-generation
iPod Shuffle.
PortalPlayer was the largest competitor, but were bought by
Nvidia after PortalPlayer's chips lost their socket in the
iPod. SigmaTel was voted "Best Place to Work in Austin 2005" by the
Austin Chronicle. In July 2005, SigmaTel acquired the rights to different software technologies sold by Digital Networks North America (a subsidiary of
D&M Holdings, and owner of
Rio Audio). On July 25, 2006,
Integrated Device Technology, Inc. (IDT) announced its acquisition of SigmaTel, Inc.'s
AC'97 and
High Definition Audio (HD-Audio) PC and Notebook audio codec product lines for approximately $72 million in cash, and the acquisition of SigmaTel's intellectual property and employee teams necessary for continuing existing product roadmap, with expected closure by the end of July. In mid-2007 SigmaTel introduced portable QVGA 320×240 portable
video decoder, and support for higher resolutions using
WMV and
MPEG4 followed. Some SigmaTel
microcontrollers, like STDC982G, are used in printers manufactured by
Samsung and sold under the
Xerox brand.
Kodak all-in-one printers also use SigmaTel
IC's. SigmaTel's equity traded as low as $100 million below
book value. Its peak share price was $45 and its day one IPO max share price was around $18. After the SGTL IPO in 2003, Austin's other biggest IPO was the later spinoff of Freescale Semiconductor by
Motorola Corporation. Over 150 models of MP3/
WMA players used SigmaTel SDK3.1 and the STMP35xx SoC with its MS DRM10 capabilities. On February 4, 2008,
Freescale Semiconductor announced that it had entered into a definitive agreement to acquire SigmaTel for $110 million. The agreement closed in the second quarter of 2008 and all SGTL shares were purchased by Freescale for $3 each. Freescale continued developing and selling the STMP3 portable AV SoC product line, which are
ARM9-based STMP37xx and STMP36xx AV SoCs, and the DSP56k-based STMP35xx portable AV SoC. Product info was on Freescale's
ARM-based controller site. Freescale's i.MX2 ARM9 and i.MX3
ARM11-based multimedia SoC product line (especially analog SoC features) have been integrated with the STMP3xxx product line, resulting in a stronger portable multimedia product portfolio. On February 25, 2009, Freescale laid off 70% of the former SigmaTel team as part of a company-wide reduction in force. No new products under the SigmaTel design teams will be created. A 'skeleton crew' was chosen to stay and support existing OEM customers that are using the existing chips until the chips enter their '
End Of Life' phase. Freescale integrated analog
IP from SigmaTel into its competing product lines and continues to pursue component and
Real Time OS device driver-based support for OEM's rather than the complete hardware and software
turnkey system design approach of the successful SigmaTel startup that powered hundreds of millions of portable media players enjoyed by many users. After winning MP3 player integrated circuit patent infringement suits at the
U.S. International Trade Commission when the STMP35xx principal
firmware engineer documented how SigmaTel firmware uses its dynamic voltage and frequency scaling related patents,
U.S. Customs physically destroyed
Actions Semiconductor products at the U.S. border for
intellectual property infringement. SigmaTel settled all patent litigation and in 2007 entered into a
cross-licensing agreement with the
Zhuhai, China-based Actions Semiconductor Co. Ltd. Both companies also agreed not to pursue possible third-party IP infringements or new legal action against each other and their respective customers for three years. Consequently, all of Actions' current and future products may be imported into the U.S. market without restrictions. ==Products==