The DOJ's approval of the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. could bode well for some semiconductor suppliers, as well as allow for cheaper satellite radios, says some industry experts.

Suppliers like STMicroelectronics may fare well if the "new" Sirius decides to integrate its baseband and tuner on a single chip. ST would be able to do this with a minimal learning curve, according to Michael Kasparian, market development manager for the automotive business unit at the company. That's because ST is the sole provider of XM's baseband chipset and is one of two suppliers for Sirius' baseband chipsets, plus it also delivers tuners for both systems.

Kasparian says a redesign into a single baseband chip will require retooling, because the two basebands are currently completely different, adding that the new chip spec from Sirius could take up to a year after FCC approval.

"We'd be talking about a 65nm CMOS process for the baseband chip," said Kasparian. "If it takes longer to get the design, we may be to 45nm."

According to EE Times, the unified company could bring in economies of scale large enough to affect the entire industry. The chip's "real estate" alone delivers cost savings.

"You're buying by die size," Kasparian said. "The more you buy, the cheaper per die you can get away with, whether it's what we're charging or what you're willing to pay."

The market currently supports two distinct systems with distinct chipsets, but a single-chip solution serving both Sirius and XM would offer cost advantages.

"That would mean fewer part numbers shipping to larger volumes," said Kasparian. "That's always cheaper to do, and that kind of cost reduction would be passed on to the consumer."

[EE Times]