Two Cheers For On Semiconductor’s Acquisition Of Hearing-Aid Chip Maker Sound Design Technologies

On Semiconductor’s recent acquisition of Sound Design Technologies reduces the number of independent manufacturers of digital signal processor (DSP) chips for hearing aids, lessening competition in an industry that is already highly concentrated. Less competition is not a good thing over the long run, because when fewer manufacturers control a market, they can charge higher prices for the products they’ve already built. They can also invest less in new technology innovations because there are fewer competitors out there likely to leapfrog them. However, over the short term, On Semiconductor’s acquisition acquisition of Sound Design may actually be a very good thing for the hearing industry. Here’s why.

Ever since Sound Design spun out of Canadian semiconductor maker Gennum several years ago, it has been the only independent DSP chip manufacturer focused on the hearing aid market. Many hearing-aid manufacturers who do not design and build their own chips use Sound Design’s chips to power their hearing aids. DSPs are specialized semiconductor products whose hearing-aid manufacturer customers expect lower costs and higher performance every year along with more miniaturization and special features. DSPs allow hearing-aid makers to provide better feedback canceling capability, automatic adjustment to different listening environments, automatic adjustment of directional microphones, wireless communication between left and right hearing aids to provide better hearing “in stereo,” Bluetooth integration, and numerous other features that have dramatically improved digital hearing aids in recent years.

Sound Design’s new Wolverine DSP is a high-performance digital engine for hearing aids that is smaller than earlier DSPs, consumes less power, delivers more processing capability and enables easier and more flexible development and deployment of custom sound-processing algorithms and special applications by hearing-aid manufacturers. Clearly the company’s focus on the hearing-aid market has paid off.

But chip design, manufacturing and distribution is a highly capital-intensive business, and Sound Design on its own was nowhere near as large as many of the semiconductor companies it would have to compete against. Without being able to achieve economies of scale from a manufacturing operation selling a lot of products, it’s hard for a chip company to keep costs as low as customers want.

Therefore being acquired should enable Sound Design to leverage On Semiconductor’s mass-production capabilities to keep costs down. It will also be able to tap On Semiconductor’s deep bench of designers with extensive experience developing power and signal management semiconductors, logic chips, discrete components and custom devices — all of which can be applied to next-generation hearing-aid DSPs. That’s a benefit to hearing-aid manufacturers, who need to continue integrating all kinds of new capabilities into ever-smaller form factors. On Semiconductor spun out of Motorola several years ago and is now a leading publicly held semiconductor company with nearly $2 billion (USD) in annual revenue, so it’s got all the resources a small manufacturer of hearing-aid DSPs should need. If it allows Sound Design’s team of executives to continue focusing as relentlessly on the hearing-aid market as they have in the past, the acquisition could be a win-win-win for On Semiconductor, Sound Design, hearing-aid manufacturers who depend on them, and hearing-aid users who will continue to benefit from new technologies and better performance at lower costs.

However, that’s a big “if.” Read more

America Hears, Inc. Upgrades Entire Hearing-Aid Line to 32-Channel Digital Signal Processors

With its new Independence Family of hearing aids, America Hears, Inc., has upgraded its entire family of digital hearing aids to 32-channel digital signal processors. And, in line with its stated goal of remaining the price/performance leader among hearing-aid manufacturers, it has set prices ranging from $799 to $1,299 per hearing aid, less than half the price charged by other name-brand manufacturers of comparable-performance hearing aids. Disclosure: I wear a pair of America Hears custom hearing aids and am incredibly happy with them. I also intend to get a pair of the new Independence hearing-aid models to hear for myself the improvements the company has made in its sound-processing system.

The new, high-performance, low-cost hearing aids feature a Voyageur II digital signal processor from Sound Design Technologies, Ltd., that processes 32 independent streams of sound to provide tuned amplification at the broadest range of frequencies available in the industry. And the Advanced Dynamic Range Optimization (ADRO) sound processing software from Dynamic Hearing Pty Ltd. features a new, improved enhance speech in noise (ESIN) algorithm that amplifies the high-frequency sounds that comprise 60% of speech, attacking the problem of hearing speech in noisy environments such as crowded restaurants.

The America Hears direct-from-factory-to-consumer Internet sales model enables the company to keep costs to the end user low. At the same time, its user-adjustable programming software enables you to take charge of tuning your own hearing aids after they are programmed to your audiogram at the factory.

The America Hears Independence hearing aids come in a range of styles, from receiver-in-the-canal, to open fit, to behind the ear, to custom models. There are up to four user-selectable four program settings for different listening environments. And it features data logging–the ability to record and track the output of your hearing aids over time to understand how they are being used in different listening environments.