Sigma Designs

Sigma Designs, Inc.
Company type	Public
Industry	Semiconductors
Founded	1982
Headquarters	Fremont, California, United States
Area served	Worldwide
Products	System-on-a-chip semiconductor solutions for set-top boxes, DVD players and recorders, HDTVs, media processors, digital media adapters, portable media devices, home networking equipment

Sigma Designs, Inc. was a publicly traded American corporation specializing in advanced system-on-a-chip semiconductor solutions tailored for Internet-enabled set-top boxes, DVD players and recorders, HDTVs, media processors, digital media adapters, portable media devices, and home networking equipment. Beyond delivering platform processing and home network components, Sigma offered engineering services and bespoke integrated circuit design.

The company concentrated on connected media ecosystems such as IPTV set-top boxes, TV media players including Blu-ray devices, HDTVs, multimedia players, digital media adapters, portable media gadgets, and home networking technologies like HomePlug AV, HomePNA, and G.hn. Holding essential intellectual property rights, Sigma was one of the two semiconductor suppliers for Z-Wave home automation technology. It also fostered strategic partnerships with industry leaders like Microsoft, with its solutions incorporated into standalone full HD multimedia players.

History

Established in 1982 and based in Fremont, California, Sigma Designs maintained a global presence through offices located in Canada, Denmark, France, Israel, Japan, the Netherlands, and Singapore. In 2002, the company collaborated with broadband television provider Thirdspace to improve streaming video performance over IP networks.

Starting with computer boards such as the ReelMagic MPEG decoder, Sigma’s technology has been embedded in numerous Blu-ray players since 2005. Its media processor products have served the IPTV sector for over ten years. In 2007, Sigma introduced the SMP863x chipset—the industry’s first media player chipset supporting 1080p resolution—which paved the way for a series of standalone HD media players beginning in 2008.

Sigma’s offerings were marketed worldwide via direct sales channels and distributors. Its common stock was publicly listed on NASDAQ under the ticker SIGM since 1986.

On December 7, 2017, Silicon Labs declared an agreement to acquire Sigma for roughly $282 million. However, by January 2018, Sigma shifted its strategy to sell only its Z-Wave division to Silicon Labs for $240 million and proceed with company liquidation. The transaction for Z-Wave was finalized on April 18, 2018.

Acquisitions

On February 8, 2008, Sigma Designs expanded its capabilities by acquiring the VXP image processing division from Canadian firm Gennum, enhancing its video projector technologies. By January 2011, VXP technology was integrated into Sigma’s SMP8910 system-on-a-chip series.

On December 18, 2008, Sigma broadened its portfolio through acquiring Zensys of California—recognized for its wireless mesh networking technology Z-Wave—thereby strengthening its foothold in smart network semiconductor markets.

On October 14, 2009, Sigma completed the purchase of CopperGate Technologies from Israel for $160 million in cash and stock. CopperGate specialized in home-networking chips featuring HomePNA and HomePlug AV technologies; subsequently, Sigma upgraded HomePlug AV with ClearPath enhancements to substantially increase data throughput and received industry accolades.

On March 21, 2012, Sigma entered into an asset purchase agreement to acquire key components of Trident Microsystems’ Digital Television (DTV) Business for $21 million in cash plus assumed liabilities. This deal included products, licensed IP rights, software assets, and leased facilities to support Sigma’s strategic expansion within the digital TV segment.

Product divisions

Sigma Designs specializes in system-on-a-chip (SoC) solutions tailored for entertainment and control applications:

Media and video processing

On July 9, 2010, French company Free Inc. utilized Sigma Designs' media processors to deliver the inaugural 3D broadcast of the World Cup, marking Europe’s first continuous 3D content transmission.

The firm provides advanced media and video processing solutions through its SMP8910 and SMP8670 chipsets, which were introduced at the 2011 Consumer Electronics Show. These processors incorporate VXP video enhancement technology aimed at improving HD and 3D image quality. Although announced in early 2011, the SMP8910 chipset entered commercial use toward the end of 2012 when Syabas launched the Popcorn Hour A-400 media player featuring the SMP8911 variant.

Home AV Networking

Sigma Designs’ AV networking products utilize existing household wiring infrastructures—such as coaxial cables, telephone lines, and AC power circuits—to achieve data rates up to 200 Mbit/s via HomePNA and HomePlug AV standards. These technologies are marketed under the ClearPath brand, designed to mitigate noise on power lines. By November 2010, shipments of HomePNA chipsets had surpassed 20 million units.

In October 2010, the company introduced G.hn chipsets branded as ClearPath Extreme, offering speeds up to 3 Gbit/s.

In June 2011, Sigma launched the Skini reference platform: a slim set-top box that integrates over-the-top (OTT) streaming with traditional over-the-air and cable services, aiming to unify various home entertainment sources.

Home control

Sigma Designs is the developer and marketer of the Z-Wave wireless protocol, which utilizes radio frequency communication for home automation in residential and light commercial environments. The Z-Wave ecosystem includes over 1,500 interoperable certified products. In 2011, Sigma expanded its manufacturing base by licensing Mitsumi, a Japanese company, as a secondary source for Z-Wave technology to support international growth. Additionally, Verizon partnered with Sigma to implement home automation and security services leveraging Z-Wave technology, reinforcing Sigma’s position in smart home markets.

Xvid controversy

In July 2002, Sigma Designs launched the REALmagic MPEG-4 Video Codec, which was later discovered to contain substantial segments of Xvid source code. Despite initial commitments to remove GPL-licensed material, further examinations uncovered concealed Xvid code within the product. Following public scrutiny and pressure from Xvid developers, Sigma agreed in August 2002 to release the REALmagic source code publicly, thereby settling the copyright infringement matter.

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