DSP Group Strengthens its Position in Rapidly Growing Headset Market with Acquisition of SoundChip SA

Acquisition extends ANC technology and system design expertise to form best-of-breed provider of next-generation headsets 
Google, Panasonic and Technics launch new TWS headsets leveraging DSP Group’s cutting-edge audio technology

SAN JOSE, Calif., June 09, 2020 (GLOBE NEWSWIRE) -- DSP Group, Inc. (NASDAQ: DSPG), a leading global provider of wireless chipset solutions for converged communications, today announced the acquisition of privately owned SoundChip SA, a leading supplier of active noise cancellation (ANC) technology, engineering services, design tools, and production-line test systems for headsets. The acquisition combines SoundChip’s proven capabilities in hybrid ANC with DSP Group’s SmartVoice advanced low-power voice processing platform, algorithms, and mixed-signal expertise to streamline the delivery of cutting-edge wireless and true wireless stereo (TWS) headsets, from concept through to manufacturing. DSP Group’s technologies have recently been adopted by Google, Panasonic and Technics in their latest TWS headset models.

The acquisition of SoundChip, alongside the strategic customer wins, marks a major milestone for DSP Group as it emerges as a best-of-breed provider of technology and expertise for smart hearables, a market that is expected to grow rapidly. For example, according to Strategy Analytics, the total market for TWS units is expected to grow from 170 million units in 2019 to 1.2 billion units by 2024^[1], representing an $8 billion total addressable market (TAM) for DSP Group. The company’s solutions are ideal for TWS applications as their combination of low power consumption, advanced algorithms and small footprint, enable hands-free operation and artificial intelligence (AI) processing with robust ANC over longer playback and talk times, all within the TWS earbud’s ever-shrinking form factor.

According to a recently published iFixit teardown, DSP Group’s advanced SmartVoice solution is driving Google’s recently launched Pixel Buds 2. Earlier this year, Technics and Panasonic launched ANC-enabled TWS headsets based on a family of new advanced hybrid ANC codecs from DSP Group incorporating SoundChip’s patented Soundflex technology. Product reviews have been very positive. For example, Forbes reported, “Not only are these earbuds completely wireless, but they also include an ANC (active noise-canceling) function for reducing background noises such as the drone of an aircraft’s engines or the hum of a busy office. It’s a bold move by Panasonic to compete with market leaders like Sony and Sennheiser but based on my first impressions of this new pair of earbuds that I’ve just reviewed, I think Panasonic has scored a direct hit.” ^[2]