A hybrid analog and digital basic set-top converter box that includes near video-on-demand and program guide service is currently being developed and deployed by cable TV operators. However, a more complex set-top will be required that will include a wide-range of interactive services and high-end graphic capabilities. Both the basic and the interactive set-top box are very cost sensitive applications with aggressive price targets. In a digital set-top, the cost of the semiconductor content represents a larger portion of the bill of materials. In order toparticipate in this market, semiconductor manufacturers are driven to develop ICs with a high level of functional integration. The requirements to achieve this integration include a complete portfolio of the intellectual property necessary to engage in this market: demodulation, error correction, transport stream demultiplexing, MPEG and AC3 audio, and MPEG2 and Digicipher II video, and a process technology that enables a cost-effective high level of integration.