A video transcoder is disclosed. The video transcoder generally comprises a processor and a video digital signal processor. The processor may be formed on a first die. The video digital signal processor may be formed on a second die and coupled to the processor. The video digital signal processor may have (i) a first module configured to perform a first operation in decoding an input video stream in a first format and (ii) a second module configured to perform a second operation in coding an output video stream in a second format, wherein the first operation and the second operation are performed in parallel.