RF Micro To Acquire IBM's GPS Operations
Online staff -- 12/4/01
Electronic News
RF Micro Devices Inc. (RFMD) today said it has agreed to purchase IBM Corp.’s global positioning system (GPS) development operation for an undisclosed sum.
Greensboro, N.C.-based RFMD said it would acquire advanced GPS technology and access to Armonk, N.Y.-based IBM's chipscale packaging technology, which uses silicon germanium (SiGe). IBM plans to transfer to IP associated with these products to RFMD, which will then file for patent protection. The GPS operations will become part of RFMD’s communications semiconductor division, adding to new design centers in Fishkill, N.Y., and Irvine, Calif.
According to the companies, industry analysts estimate the global market for GPS chips will grow to about $1.2 billion in 2005 from about $270 million in 2000. By 2005, nearly half this revenue will be from chips used in mobile handsets.
"This acquisition immediately establishes for us a strong presence in the GPS market, while strengthening our extensive module and silicon system development efforts," said William Pratt, chairman and CTO of RFMD, in a statement. "We expect significant synergy with our core RF design capabilities and anticipate our combined expertise will help to accelerate the commercialization of next-generation solutions currently in development, such as GPS on a single chip."
GPS chipsets currently comprise a DSP, low noise amplifier and RF IC, and GPS engine modules. Existing GPS customers include companies offering in-car, hand-held and marine navigation services, but RFMD said it ultimately plans to offer GPS to handset manufacturers. It also plans to develop a radio device for mobile devices incorporating WLAN, Bluetooth and GPS. |
