SGS Thomson Microelectronics NV is hoping to capitalize on the growing market for in-car GPS Global Positioning by Satellite systems, already successful in Japan and now taking off in the US and Europe, with the launch of a GPS chipset that reduces the entire system to just two chips. The ST20GP6 is a dedicated GPS microcontroller based on the company’s ST20GP1, which it has been shipping in volume to the automotive market since 1996. The new chipset includes integrated memory, with a 128Kb ROM and 64Kb SRAM, and is a result of the company’s migration to 0.35 micron HCMOS technology from 0.5 micron. The two chips provide a complete GPS engine, and replace the traditional four to five chips needed for a GPS system. Steve Sutton of the company’s programmable products group says this is the first chipset in the world to offer this level of integration. Sutton says the market for in-car satellite-based navigation systems has taken off faster in Japan than anywhere else, and the country currently takes around 1 million units a year, of which SGS Thomson chipsets go into some 30%. The remainder tends to be taken by companies making custom chips and building complete modules. Industry researcher Dataquest estimates the worldwide market will grow to at least 12 million units worldwide by 2002, and SGS Thomson believes the new chipset will enable it to capture a substantial share of this market. The company is focusing on in- car systems, having failed to make a significant impact in the hand-held GPS market a couple of years ago. However, Sutton believes the hand-held market didn’t really take off at the time because units were typically selling for around the $700-$800 mark. Now, there are hand-helds retailing for around $120, and the company believes this will fuel an increase in sales volume. It believes the ST20GP6 will enable it to get back into this market as well as into the automotive market. The company admitted that this year was supposed to have been when in-car GPS really took off, but that it is now likely to be next year.