How is noise reduced using a sigma-delta converter?
A delta-sigma modulator, used in both ADCs and DACs, comprises a difference (delta) circuit that measures the error between the input signal and the feedback signal, followed by an integrator (sigma), a quantizer (often just a comparator that yields one bit of information) and a time-domain sampler. The output of the sampler is fed back to the difference circuit through a suitable inverse quantizer (i.e., 1-bit DAC).

The trick to understanding noise shaping is to consider the quantizer as linear summing circuit that adds a "quantization noise" signal to the output of the integrator. You can then use superposition to separately evaluate the effect of the circuit on both the original signal and the quantization noise "signal".

For the original signal, the integrator is in the feed-forward path, and as you might expect, it acts as a low-pass filter for that signal &mdash; high frequencies have lower gain than low frequencies.

However, for the quantization noise signal, the integrator is in the feedback path, which means that overall, the circuit functions as a high-pass filter for the noise, reducing its gain in the low frequencies (where the desired signal is) and increasing it at the higher frequencies, where it will be subsequently removed by another filter.

It is this noise shaping that accounts for the reduction in noise density in the final passband.