US networking giant Lucent Technologies Inc has developed a new digital signal processing chip and claims it is three times faster than competing devices. The new DSP1609 will be used in digital cordless telephones, answering machines and internet appliances and is capable of performing several functions simultaneously, something that previously required two chips. By enabling the simultaneous driving of a caller identification display, a speakerphone and a digital answering phone, for example, Lucent claims the cost of electronics in some multi- function devices will be reduced by around 50%. The chip operates at 100 million instructions per second, and Lucent claims the development of mobile phones with clearer sound and longer range and answering machines with better voice quality is now possible. The organization that has recently completed its first year as an independent company, reporting losses of $597m (CI No 3,273), is hailing the new chip as a breakthrough for low cost consumer electronics manufacturers. It is priced at just less than $5 a piece when sold in quantities of 10,000.